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Last year, Walmart (WMT) was in the midst of controversy after it opted to follow a growing trend in corporate America.
In December, the retail giant cut several initiatives focused on diversity, equity, and inclusion. One goal cut was Walmart ceasing its participation in the Human Rights Campaign survey, which tracks LGBTQ+ corporate policies and practices.
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The retailer also said that funding for Pride and other events would be reviewed to ensure that sexually inappropriate content directed at children isn’t being funded.
Related: Walmart cuts back controversial policies after blowback
Walmart also vowed to remove transgender products marketed to children from its stores and to discontinue its racial equity training for employees.
In addition, the retailer said it will evaluate its supplier diversity programs to ensure that they don’t provide preferential treatment and benefits to suppliers based on race and will abandon its five-year commitment to expand its Racial Equity Center.
The decision from Walmart came after companies such as Lowe’s, Harley-Davidson, Tractor Supply, etc., also cut their DEI policies earlier last year amid pressure from conservative consumers.
Walmart shareholders send stern letter to CEO about DEI cut
Now, Walmart is facing a different type of pressure; this time, it’s from its shareholders.
In a letter addressed to Walmart CEO Doug McMillon, a group of more than over 30 shareholders, who, as a group, manage $266 billion in assets, urged McMillon to reverse the company’s decision to cut its DEI policies, which the shareholders label “very disheartening.”
“As Walmart shareholders, we are also concerned to see our company give into bullying and pressure from anti-DEI groups but ignore requests for addressing risks associated with racial inequity from a significant number of its shareholders in the past two proxy seasons,” said the shareholders in their letter. The letter was signed by Caroline Boden, Director of Shareholder Advocacy for Mercy Investment Services Inc.
When Walmart first announced that change last year, it stated that despite cutting its DEI policies, it aims to create a sense of "belonging.”
“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,” said a Walmart spokesperson in a statement to TheStreet in December.