Hot off the heels of mass closures, well-known retailer, Walmart is now under fire for a controversial policy change and shareholders are demanding answers from the higher-ups. Amidst store and health center closures last year, the big box company landed itself in some hot waters when a decision to cut several policies and initiatives in an attempt to follow the growing, albeit problematic, trends of corporate America.
How controversial can a policy change really be?
Several DEI (Diversity, Equity, and Inclusion) initiatives landed on Walmart’s chopping block in December for reasons that are still not entirely clear. This issue began with the company putting a stop to its participation in the Human Rights Campaign survey which aims to track LGBTQ+ policies and practices in a corporate setting. In addition to this, the company placed the funding for Pride related events under review with the reasoning that it is to ensure children are not exposed anything sexually inappropriate. Walmart is also determined to remove all transgender products marketed to children from its stores.
As if that was not enough, racial equity training is set to be discontinued by the company. In addition to this, the five-year commitment to expand the Racial Equity Center will be abandoned. As justification for this, the supplier diversity programs with be placed under evaluation to ensure that preferential treatment or benefits are not given to suppliers based on race.
Shareholders are pushing back and rightfully so
The spark that started this fire was pressure from conservative customers who evidently want to preserve an antiquated mindset. When other companies such as Harley Davidson and Lowe’s made the decision to submit to the pressure and abolish their DEI policies, Walmart followed suit.
As expected, the shareholders of the company could not sit idly by and applied pressure to the company from the other side. A letter addressed to CEO Doug McMillon was drafted and backed by a group of over 30 million shareholders who manage approximately $266 billion in assets. The letter urged McMillon to reconsider the company’s “very disheartening” decision and reimplement the policies. The irony of this situation can be found in the company’s bold claim that cutting out these policies is being done to foster a sense of “belonging”.
A Walmart spokesperson made a statement to TheStreet that reads as follows, “We’ve been on a journey and know we aren’t perfect, but every decision comes from a place of wanting to foster a sense of belonging, to open doors to opportunities for all our associates, customers and suppliers and to be a Walmart for everyone”.
The shareholders, understandably so, are of an opposing opinion and state that this decision sends exactly the opposite message to marginalized communities.
Are we asking too much of the multi-million dollar corporation?
In the letter signed by Caroline Boden, Director of Shareholder Advocacy for Mercy Investment Services Inc., shareholders noted, “In a time when there are threats to the rights of the LGBTQ+ community, threats of mass deportation of migrants, in addition to potential policies that may disproportionately harm people and workers of color, who make up over half of Walmart’s workforce, and low-income communities, it is imperative for Walmart to remain committed to its stated values of fostering a sense of belonging for everyone”.
A request was also made to speak to the board of directors to discuss this decision and the implications it will have on the company. The shareholders were motivated to take a stand after seeing Walmart’s rival, Costco, reject a proposal to cut out its DEI policies as well. Costco is of the positioning that DEI policies are all “legally appropriate” and will further the company’s growth and success.