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A group of Walmart shareholders penned a letter to CEO Doug McMillon on Tuesday, to let the company know that they’re disappointed with its choice to roll back some of its diversity, equity and inclusion (DEI) programs.
The group, which includes 31 signatories, many of which are groups with faith-based affiliations, like Mercy Investment Services, Sisters of Charity of Saint Elizabeth and the Congregation of St. Joseph, represents $266 billion in assets under management or advisement, per the letter.
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“Seeing the company retreat from its stated values and the business opportunities associated with a diverse and inclusive workforce is very disheartening,” the signatories to the letter wrote, noting that Walmart has failed to provide a financial or business reason for its policy changes.
The company announced last year that it had chosen not to renew a five-year commitment on a racial equity center it developed in the wake of George Floyd’s death; had elected to scrap any preferential treatment to diverse suppliers; had pulled out of the Human Rights Campagin’s Corporate Index and would drop use of terms like “DEI” and “diversity,” instead moving forward with a theme of “belonging.”
The shareholders noted that, given those changes, they felt “concerned to see our company give into bullying and pressure from anti-DEI groups.”
Kevin Thomas, CEO of SHARE, said “anti-woke” activists like Robby Starbuck, who has taken public credit for Walmart’s retreat from DEI, had undue influence over one of the world’s most robust companies.
“It’s worrying for shareholders because [Walmart] management appears to be swayed by threats from internet trolls who are already crowing about their success,”Thomas said in a statement. “So, what other value-creating initiatives will management be willing to give up because of online bullying?”
The corporation has, over the past few years, asked shareholders to vote against proposals calling for racial equity audits and other DEI-related proposals.
Activist group United for Respect (UFR), which filed racial equity audit proposals in 2023 and 2024, has already noted that it plans to re-file that proposal in 2025 on the heels of Walmart’s DEI program eliminations.
Bianca Agustin and Terrysa Guerra, co-executive directors of UFR—which was not a signatory of this shareholder letter—said they believe the proposal continues to be necessary for the largest private employer in the U.S.