Walmart has announced significant changes to its diversity, equity, and inclusion (DEI) policies, marking one of the most notable shifts among U.S. corporations reassessing such initiatives. The retailer revealed it will no longer prioritize suppliers based on gender or race, nor renew its support for a racial equity center established in 2020. It has also withdrawn from the Human Rights Campaign’s workplace inclusion index, which evaluates LGBTQ+ inclusivity in corporate environments.
The rollback aligns with a growing trend among companies reconsidering DEI strategies following legal and political challenges. Analysts point to the June 2023 Supreme Court ruling ending affirmative action in college admissions as a major turning point. Since then, conservative groups have intensified efforts to challenge DEI initiatives, with several court victories prompting corporations to evaluate the potential risks of reverse discrimination claims.
Walmart’s decision comes amid increasing pressure from conservative advocacy groups, including America First Legal, founded by Trump adviser Stephen Miller. These groups argue that DEI policies promote preferential treatment and conflict with federal anti-discrimination laws. Legal victories against similar initiatives, such as a recent case targeting the Department of Transportation's minority contracting program, have further emboldened these challenges.
Dan Lennington, deputy counsel at the Wisconsin Institute for Law & Liberty, remarked, “The legal landscape has shifted, favoring individual equality over group-based diversity programs. Corporations are taking notice.”
Walmart’s move reflects broader uncertainty in the business world. While some firms quietly maintain DEI efforts to align with core values and legal requirements, others fear alienating employees, customers, or shareholders. “Striking a balance between inclusivity and legal compliance is becoming a near-impossible dilemma for companies,” said Jason Schwartz of Gibson Dunn law firm.
Critics of Walmart’s decision, such as Marc Morial, CEO of the National Urban League, view the rollback as inconsistent with the retailer’s legacy of supporting diversity. “DEI programs aren’t just about equity—they ensure compliance with foundational anti-discrimination laws,” Morial argued.
Despite the changes, Walmart emphasized its continued support for diverse suppliers. In fiscal year 2024, its U.S. operations sourced over $13 billion in goods from minority-, women-, and veteran-owned businesses. However, organizations like the Women’s Business Enterprise National Council remain cautious about how these shifts might impact existing partnerships.
Pamela Prince-Eason, the council’s CEO, expressed optimism, stating, “Walmart has one of the world’s most inclusive supply chains. Understanding diverse customers will remain key to serving them effectively.”
As political dynamics evolve, experts warn companies against frequent reversals. David Glasgow, director at NYU’s Meltzer Center for Diversity, Inclusion, and Belonging, advises businesses to stay consistent with their values. “Flip-flopping based on political winds can undermine credibility,” he noted.
While Walmart’s adjustments signal a significant departure, other companies are quietly sustaining their DEI efforts. “There’s a shift toward subtlety in how businesses approach diversity. They’re keeping a low profile while continuing critical work,” Glasgow added.
Walmart’s rollback adds to a growing list of companies revising DEI commitments, including Ford, Lowe’s, and Harley-Davidson. The developments underscore a shifting corporate landscape, as businesses grapple with the evolving intersection of legal, political, and social pressures.
