On November 25, 2024, anti-DEI activist Robby Starbuck announced that Walmart had implemented the following changes in response to negotiations with him.1
•“Surveys: Walmart will no longer participate in the HRC’s woke Corporate Equality Index.”
•“Products: Monitor the Walmart marketplace to identify and remove inappropriate sexual and / or transgender products marketed to children.”
•“Funding of Grants: Review all funding of Pride, and other events, to avoid funding inappropriate sexualized content targeting kids.”
•“Equity: We will not extend the Racial Equity Center which was established in 2020 as a special five-year initiative.”
•“Supplier Diversity: We will evaluate supplier diversity programs and ensure they do not provide preferential treatment and benefits to suppliers based on diversity…. Financing eligibility will no longer be predicated on providing certain demographic data.”
•“LatinX: Walmart will no longer use the term in official communications.”
•“Trainings: Walmart will discontinue racial equity training through the Racial Equity Institute.”
•“DEI: Walmart will discontinue the use of DEI as a term ….”
Walmart executives deserve great credit for these changes, as they significantly reduce a number of divisive, dangerous, and value-destroying DEI initiatives. However, Walmart was or should have been aware of the risks associated with these initiatives for years. In fact, the proponent of this proposal filed proposals in 20242 and 20233 raising related concerns, and commentators and related events have been sounding an alarm as far back as 20204 and earlier.5
However, it was apparently not until Robby Starbuck threatened to expose offensive Walmart “wokeness” that meaningful changes were made, and then within a matter of days.6 Perhaps most concerning, reports indicate that material information regarding Walmart’s policies and practices “were new to some executives involved in the discussions”7 This suggests a problematic lack of oversight and/or the existence of insulated ideological echo chambers within Walmart interfering with effective oversight.
Concerns about DEI and “wokeness” obviously impact the bottom line. A single “reverse discrimination” lawsuit cost Starbucks over $25 million,8 and the list of “woke” companies recently losing billions in market capitalization, apparently in response to their radical ideologies being exposed, is long.9 In addition to concerns about the time it took Walmart to revise its DEI programs, a major concern for Walmart shareholders is that value-destroying DEI initiatives are merely being repackaged rather than eliminated.10 Corporate governance missteps revealed by the requested report would help prevent that recurrence.
We urge shareholders to vote FOR this proposal to promote clarity and accountability regarding Walmart’s DEI-related decisions and overall corporate governance.