A Shift in Focus: Walmart’s Move Away from DEI
As the largest employer in the United States, Walmart’s recent decision to reframe its focus on diversity, equity, and inclusion (DEI) is sending ripples across the industry. The retailer is shifting its attention to inclusion and belonging, a move that may have far-reaching consequences for other companies.
The Rise and Fall of DEI
DEI became a buzzword in 2020, following the murder of George Floyd. However, the concept has been around for much longer. Now, with conservative backlash on the rise, companies are reassessing their DEI efforts. Glassdoor’s 2024 word of the year, “divisive,” reflects the growing tension surrounding DEI initiatives.
Walmart’s New Direction
Walmart’s chief people officer, Donna Morris, explained that the company is moving away from DEI terminology to focus on belonging. This shift is not a response to external pressure, but rather an effort to create a more inclusive environment. Morris emphasized that the company’s values remain unchanged, but its approach is evolving.
The Industry’s Response
Other companies, such as Lowe’s, Tractor Supply, John Deere, and Harley-Davidson, have already scaled back their DEI policies. The University of Michigan has ended required diversity statements, and a federal appeals court has blocked the Nasdaq’s diversity requirements. Conservative activist Robby Starbuck sees Walmart’s move as a victory, and predicts that more companies will follow suit.
The Benefits of DEI
Despite the backlash, many companies remain committed to DEI efforts. E.l.f. Beauty’s campaign, “So Many ‘Dicks,’” aims to double the rate of women and diverse members added to corporate boards by 2027. Research suggests that companies with diverse executive teams and boards tend to outperform their peers. Bloomberg Intelligence’s Women Capital 2025 report found that companies with more women on their boards delivered higher returns and lower volatility.
The Debate Continues
However, not everyone agrees that DEI initiatives lead to financial benefits. University of North Carolina professors Sekou Bermiss and John Hand, along with Texas A&M’s Jeremiah Green, found no statistically reliable correlation between diversity in top management and financial performance.
The Future of DEI
As companies navigate the shifting landscape of DEI, some experts predict that many will rebrand their efforts to embed them as an HR function. Dartmouth professor Adam Kleinbaum believes that inclusion and making people feel valued will lead to better collaboration, retention, and ultimately, financial success. With the launch of new ETFs focused on eliminating “anti-meritocratic laggards,” it’s clear that the debate surrounding DEI is far from over.
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