“Wokeness” Rollback: Walmart Reevaluates Diversity Programs in Favor of Corporate Neutrality

Walmart (WMT), the largest private employer in the U.S., has announced significant changes to its diversity, equity, and inclusion (DEI) programs after conservative activist Robby Starbuck threatened to call for a boycott ahead of Black Friday. The changes come amidst growing criticism of corporate DEI initiatives by conservative groups.

Policy Changes Announced

Starbuck, known for his campaigns against what he terms “woke policies,” claimed credit for persuading Walmart to roll back initiatives such as racial equity training for employees and funding for anti-racist organizations. Key changes include:

• LGBT+ Programs: Walmart will review its funding for Pride events, ensuring it does not support content deemed inappropriate for children, such as positioning family areas near drag shows. The company also plans to stop participating in the Human Rights Campaign’s LGBT+ equality index and will remove “transgender products” marketed to children from its stores.
• Language and Terminology: The retailer will discontinue the use of terms like “DEI” and “LatinX” in official communications.
• Supplier Diversity: Walmart will no longer consider race and gender in its supplier diversity program, nor will it require suppliers to provide demographic data.

A Walmart spokesperson confirmed the changes, emphasizing the company’s commitment to being “a Walmart for everyone.”

Reaction from Conservative Activists

Starbuck hailed the changes as a major victory, stating on social media platform X (formerly Twitter):

“This is the biggest win yet for our movement to end wokeness in corporate America. The era of wokeness is dying before our eyes.”

He suggested the move would set a precedent, adding that companies like Amazon and Target should take note of Walmart’s shift and prepare for potential backlash if they maintain similar policies.

Broader Corporate Trends

Walmart’s decision aligns with a growing trend among U.S. corporations to scale back DEI efforts under conservative pressure. Other companies, such as Boeing (BA), Harley-Davidson (HOG), and John Deere (DE), have also reevaluated or distanced themselves from diversity initiatives.

Walmart initially introduced expanded diversity programs in response to the George Floyd protests in 2020, as part of a broader corporate effort to address systemic inequities. However, these programs have become a focal point for criticism from conservative groups, with Donald Trump and his supporters targeting DEI as emblematic of what they describe as corporate overreach into progressive politics.

Market Implications

Starbuck argued that Walmart’s decision would benefit the retailer, positioning it as a more neutral alternative to competitors like Target, which have faced backlash over similar policies.

“Shoppers have very few large retail brands they can spend money with who aren’t pushing woke policies. Walmart’s move puts it ahead of competitors in this area,” Starbuck said.

As corporate America faces increasing pressure to navigate the divide between progressive initiatives and conservative opposition, Walmart’s pivot marks a notable shift in the ongoing debate over the role of businesses in addressing social and cultural issues.