Walmart Inc. surprised many civil rights activists in November when it announced a shift in its diversity, equity, and inclusion (DEI) efforts. The retail giant revealed plans to stop using the term "DEI" in its communications, remove certain LGBTQ products from its website, and change its approach to supplier contracts by no longer considering race and gender as factors for boosting diversity.
However, six months later, Walmart’s changes appear to be more about semantics than a complete overhaul. The company has replaced most mentions of DEI with the term "belonging," a shift that began two years ago. Yet, job postings still refer to the need for candidates who support diversity, equity, and inclusion. There are still dedicated pages on its website showcasing products from LGBTQIA+ brands, and similar initiatives for Hispanic, Black, and women-owned businesses remain in place.
Walmart isn’t alone in this trend. Many large U.S. companies that have publicly claimed to pull back on DEI initiatives have mostly made minor adjustments while assuring stakeholders that their core programs remain intact. A Walmart spokesperson emphasized that the company aims to foster a sense of belonging and create opportunities for all associates, customers, and suppliers.
The backdrop of these changes includes executive orders from former President Donald Trump, which targeted what his administration labeled "illegal DEI" practices. These orders prompted many companies to reconsider their DEI policies due to fears of legal repercussions. However, experts assert that these orders have not fundamentally altered employment law, allowing many DEI programs to continue with slight modifications.
While some companies have removed specific demographic targets for workforce representation, they still collect data on employees’ race and gender. Titles like "diversity officer" have been rebranded, but many employee resource groups continue to exist, albeit under new scrutiny. Health benefits for transgender employees have largely remained the same, and mentorship programs aimed at underrepresented groups still operate, now open to all applicants.
For instance, major companies like Ford, Deloitte, and Boeing are still actively recruiting through partnerships with historically Black colleges and universities. This trend shows that, despite some public rollbacks, the commitment to diversity in hiring remains strong.
In a notable example, Lowe’s announced a restructuring of its employee resource groups but later clarified that the changes were limited. The company still emphasizes its commitment to diversity as a core value.
As companies adapt to this new landscape, some have opted for a quieter approach. While Costco and Apple have publicly defended their diversity efforts, others like McDonald’s and IBM have chosen to keep a low profile while making similar statements internally.
The future of DEI initiatives in corporate America remains uncertain, as companies continue to balance the desire to maintain inclusive practices with the risk of government scrutiny. Many executives are looking for ways to affirm their commitment to diversity without facing legal challenges. The current climate has led to a cautious approach, with a focus on avoiding controversy while still striving to create welcoming workplaces.