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.
“The racial equity audit proposal presents Walmart with a vital opportunity to reflect on its practices, address systemic harm and take meaningful responsibility for fostering a truly equitable workplace,” Agustin and Guerra said in a statement.
The signatories to the shareholder letter noted that Walmart has failed to carry out its written commitments on creating an equitable workplace for its employees.
“Walmart has sent a clear signal to all underrepresented and marginalized groups that Walmart will not fight to protect their rights. 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,” the signatories wrote.
Their groups’ came just days after attorneys general of 13 states, requesting further information about how the superstore giant plans to protect employees’ civil rights without a formal DEI policy in place.
The shareholders requested that Walmart’s board of directors and senior leadership meet with the letter’s signatories to discuss the change in policies.
“As your shareholders, we implore Walmart to remain committed to policies and programs that mitigate risk and promote growth, including initiatives that foster diversity, equity, and inclusion. As fellow human beings, we ask you to stand firm in your purpose to ‘Live Better’ and not succumb to political pressure asking you to forsake your values,” they wrote.
Walmart did not return Sourcing Journal’s request for comment on the letter.
