Walmart recently made significant changes to its diversity policies, reflecting a broader trend of U.S. companies reassessing the legal and political risks associated with initiatives aimed at supporting historically marginalized groups in business.
The modifications announced by Walmart, the world’s largest retailer, come after conservative groups have won legal battles challenging programs that promote minority and women-owned businesses and employees.
These changes are in response to the election of former President Donald Trump and his administration’s focus on dismantling diversity, equity, and inclusion programs. Trump’s former adviser, Stephen Miller, who leads a group that opposes corporate DEI policies, will play a role in this effort.
Companies are beginning to evaluate the legal risks associated with maintaining such programs, especially after a Supreme Court ruling in 2023 ended affirmative action in college admissions. Conservative groups have secured court victories against diversity initiatives that prioritize minority or women-owned businesses.
Walmart’s adjustments include no longer providing preferential treatment to suppliers owned by women or minorities, discontinuing a commitment to racial equity, and withdrawing from a prominent gay rights index.
Experts believe that many companies will follow Walmart’s lead and reassess their DEI efforts due to legal risk exposure. The impact of the election on DEI policies is expected to be significant as the administration is likely to target these initiatives through executive orders and policies affecting federal contractors.
While some companies may scale back their DEI initiatives, there are still many organizations committed to diversity, inclusion, and belonging. These companies are advised to stay true to their core values despite changing political winds.
Walmart will no longer consider race and gender in awarding supplier contracts but remains committed to maintaining an inclusive supply chain. The impact of these changes on Walmart’s relationships with women-owned suppliers is still being evaluated by partner organizations.
The company’s decision to revise its diversity policies came after discussions with conservative commentator Robby Starbuck, who has been critical of DEI initiatives. Several other companies, including Ford, Harley-Davidson, Lowe’s, and Tractor Supply, have also announced changes to their programs influenced by similar conversations.
Walmart’s adjustments also involve increased monitoring of third-party marketplace items to prevent products targeting minors based on gender or sexual orientation. The company will no longer be participating in an index measuring LGBTQ+ workplace inclusion.
Despite these shifts, companies that walk back their commitment to workplace inclusion policies risk alienating employees, consumers, and shareholders who support diversity. The buying power of LGBTQ customers remains influential, and organizations are encouraged to continue fostering inclusive environments.
