Dozens of shareholders representing $266 billion in assets are calling on Walmart to spell out the business reasons for backpedaling on the retailer’s diversity, equity and inclusion (DEI) initiatives.
Investors including Amalgamated Bank and Dominican Sisters of Grand Rapids said Tuesday in a letter to Walmart CEO Doug McMillon that they are “concerned to see our company give into bullying and pressure from anti-DEI groups.”
The world’s largest retailer in November joined a growing list of corporations ditching their DEI programs after coming under attack by conservative activists. The sweeping changes included a decision by Walmart not to renew a five-year commitment for an equity racial center set up in 2020 after the police killing of George Floyd. Walmart also said it would no long consider race or gender in its treatment of suppliers.
Organized by the Interfaith Center on Corporate Responsibility, a coalition that seeks to influence corporate behavior, the investors requested a meeting with Walmart leaders about the change in policy, noting they had for decades supplied data illustrating the business hazards linked to discrimination and inequity.
“Seeing the company retreat from its stated values and the business opportunities associated with a diverse and inclusive workforce is very disheartening. Additionally, Walmart has not offered a financial or business case for this change in policy,” the investors wrote.
Walmart did not immediately respond to a request for comment.
The letter coincides with another by a coalition of 14 attorneys general also voicing concerns about Walmart’s DEI announcement, made weeks after the November win at the polls by President-elect Donald Trump, a vocal opponent of DEI policies.
Other companies have also moved to unwind their DEI efforts in recent weeks. Meta last week said it would pull the plug on its DEI programs, joining other corporate giants to make the move, including Ford and McDonald’s. The retrenchment accelerated in 2023 after the Supreme Court banned affirmative action in college admissions, a decision that emboldened anti-DEI activists.
Other large companies to shut down their DEI programs include motorcycle maker Harley-Davidson, hardware chain Lowe’s, and farm equipment manufacturers John Deere and actor Supply.
Still, mamor companies including Apple, Costco and Target continue to support their DEI policies. Target, for instance, is defending against itself in court against a conservative advocacy group’s lawsuit claiming the retailer misled investors about the alleged financial risks stemming from its DEI practices.
Jeff Raikes, a Costco board member, has touted the economic benefits of diverse workplaces, posting on social media in November that “attacks on DEI aren’t just bad for business — they hurt our economy. A diverse workforce drives innovation, expands markets and fuels growth.”
Costco’s board is recommending that shareholders vote against a proposal to dismantle its DEI program ahead of a Jan. 23 investor meeting amid calls by activists such as Robby Starbuck urging boycotts of the warehouse club.
“Among other things, a diverse group of employees helps bring originality and creativity to our merchandise offerings, promoting the ‘treasure hunt’ that our customers value,” the retailer stated.
Kate Gibson is a reporter for CBS MoneyWatch in New York, where she covers business and consumer finance.
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