DEI in the balance: What Walmart’s rollback could signal for corporate America
In a move that sent shockwaves through HR departments, Walmart announced significant changes to its DEI initiatives, becoming the largest company to date to scale back such programs.
The retail giant’s decision includes withdrawing from the LGBTQ+ advocacy group Human Rights Campaign’s Corporate Equality Index and ending its practice of prioritizing suppliers based on race or gender criteria. Notably, Walmart also chose not to renew its five-year commitment to a racial equity center established in the wake of George Floyd’s death in 2020.
The announcement follows similar moves by other big corporations, including Ford Motor Co., Lowe’s and Toyota, signaling a broader shift in how American companies approach workplace diversity and inclusion. Conservative activists have turned up the heat on corporate DEI policies, which has only intensified following this month’s U.S. elections, which conservatives swept.
Meanwhile, workers’ views of DEI programs have become slightly less supportive, according to a recent survey by Pew Research Center. Employees are now somewhat more likely, versus a February 2023 poll, to say their companies pay too much attention to DEI and that focusing on it is mainly a bad thing.
While some companies have chosen to dial back their DEI commitments, others, including Amazon, JPMorgan Chase and Target, are standing firm. In September, JPMorgan Chase CEO Jamie Dimon said of DEI programs, “It’s good for business, it’s morally right, we’re quite good at it, we’re successful.”
“We’re seeing a fundamental rethinking of how organizations approach DEI,” said Dana Daher, analyst and practice leader at HFS Research. “The primary concern isn’t just the public abandonment of corporate commitments but, rather, the long-term impact on business operations as disparities — particularly at the leadership level — will remain and continue to widen without formal policies in place.”
Eric Mochnacz, director of operations at HR consultancy Red Clover, points to corporate fear of consumer backlash as a key driver of the trend. “Companies will often shift their perspectives and approaches based on the outcome of elections,” he said. “The big difference right now is, I think, a number of these companies are legitimately afraid of retribution this time around either from the federal government or from consumers who have taken on taking down DEI programs as their personal mission.”
That said, Mochnacz warns of potential consequences in the workplace. “I think overt racism, homophobia and bigotry are going to make a big comeback in companies that are abandoning DEI,” he said. “And will the underrepresented populations in those companies feel supported and like they have recourse? Or are legitimate investigations into harassment going to be thrown out along with DEI commitments?”
Despite the challenging landscape, some HR leaders see an opportunity for evolution rather than elimination.
KeyAnna Schmiedl, chief human experience officer at employee recognition program Workhuman, emphasizes that core principles of inclusion remain elemental regardless of policy shifts. “Cultivating psychological safety and belonging is essential to any thriving workforce,” she said. “As HR leaders, it’s our responsibility to stay current on changes to that landscape and identify the places our employees may need additional support.”
Rebecca Perrault, global vp of culture, diversity and sustainability at workforce management platform Magnit, offers a stark warning about the implications of these rollbacks, meanwhile. “This shift risks sending a message that inclusion is optional — a dangerous precedent in a world where equity and innovation are deeply interconnected,” she said. “Moving DEI out of its dedicated space may feel like adaptation, but it also signals hesitation in the face of backlash — a short-term response to long-term challenges.”
Some people management experts suggest that rather than viewing these changes as DEI’s death knell, organizations should focus on integrating inclusive practices even more deeply into their operations.
“The dissolvement of formal DEI programs paradoxically creates an opportunity for organizations to integrate more authentic inclusive practices into their core business operations,” Daher said. “Business leaders can seize this moment to move beyond the limitations of first-generation DEI programs and transform their organization by embedding inclusive practices into their DNA rather than treating them as separate initiatives.”
For HR professionals navigating this shifting landscape, the task lies in maintaining inclusive workplaces while adapting to new political and social pressures.
While the focus is on what large corporations are doing, Mochnacz emphasizes that smaller companies can make a difference. “I think it’s important for smaller companies that don’t get press to continue to implement DEI initiatives, because all of our fellow citizens deserve equal access to promotions, fair treatment at work and so on,” he said.