Walmart becomes latest - and biggest - company to roll back its DEI policies

NEW YORK (AP) — Walmart, the world’s largest retailer, is rolling back its diversity, equity and inclusion policies, joining a growing list of major corporations that have done the same after coming under attack by conservative activists.

The changes, confirmed by Walmart on Monday, are sweeping and include everything from not renewing a five-year commitment for an equity racial center set up in 2020 after the police killing of George Floyd, to pulling out of a prominent gay rights index. And when it comes to race or gender, Walmart won’t be giving priority treatment to suppliers.

Walmart's moves underscore the increasing pressure faced by corporate America as it continues to navigate the fallout from the U.S. Supreme Court’s ruling in June 2023 ending affirmative action in college admissions. Emboldened by that decision, conservative groups have filed lawsuits making similar arguments about corporations, targeting workplace initiatives such as diversity programs and hiring practices that prioritize historically marginalized groups.

Separately, conservative political commentator and activist Robby Starbuck has been going after corporate DEI policies, calling out individual companies on the social media platform X. Several of those companies have subsequently announced that they are pulling back their initiatives, including Ford, Harley-Davidson, Lowe's and Tractor Supply.

But Walmart, which employs 1.6 million workers in the U.S., is the largest one to do so.

“This is the biggest win yet for our movement to end wokeness in corporate America,” Starbuck wrote on X, adding that he had been in conversation with Walmart.

Walmart confirmed to The Associated Press that it will better monitor its third-party marketplace items to make sure they don’t feature sexual and transgender products aimed at minors. That would include chest binders intended for youth who are going through a gender change, the company said.

The Bentonville, Arkansas-based retailer will also be reviewing grants to Pride events to make sure it is not financially supporting sexualized content that may be unsuitable for kids. For example, the company wants to makes sure a family pavilion is not next to a drag show at a Pride event, the company said.

Additionally, Walmart will no longer consider race and gender as a litmus test to improve diversity when it offers supplier contracts. The company said it didn't have quotas and will not do so going forward. It won't be gathering demographic data when determining financing eligibility for those grants.

Walmart also said it wouldn't renew a racial equity center that was established through a five-year, $100 million philanthropic commitment from the company with a mandate to, according to its website, “address the root causes of gaps in outcomes experienced by Black and African American people in education, health, finance and criminal justice systems."

And it would stop participating in the Human Rights Campaign's annual benchmark index that measures workplace inclusion for LGBTQ+ employees.

“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,” the company said in a statement.

The changes come soon after an election win by former President Donald Trump, who has criticized DEI initiatives and surrounded himself with conservatives who hold similar views, including his former adviser Stephen Miller, who leads a group called America First Legal that has challenged corporate DEI policies. Trump named Miller to be the deputy chief of policy in his new administration.

A Walmart spokesperson said some of its policy changes have been in progress for a while. For example, it has been moving away from using the word DEI in job titles and communications and started to use the word “belonging.” It also started making changes to its supplier program in the aftermath of the Supreme Court affirmative action ruling.

Some have been urging companies to stick with their DEI policies. Last month, a group of Democrats in Congress appealed to the leaders of the Fortune 1000, saying that DEI efforts give everyone a fair chance at achieving the American dream.

FILE - A Walmart logo is displayed outside of a Walmart store, in Walpole, Mass., Sept. 3, 2019. (AP Photo/Steven Senne, File)

Drake alleged in a court filing Monday that Universal Music Group falsely pumped up the popularity on Spotify and other streaming services of Kendrick Lamar's “Not Like Us," a song that viciously attacked Drake amid a bitter feud between the two hip-hop superstars.

The petition in a New York court by the rapper's company Frozen Moments LLC demands the preservation and divulgence of information that might be evidence in a potential lawsuit against UMG, which is the distributor for the record labels of both Drake and Lamar.

In allegations that UMG calls “offensive and untrue,” the filing says the record company “launched a campaign to manipulate and saturate the streaming services and airwaves with a song, ‘Not Like Us,’ in order to make that song go viral, including by using ‘bots’ and pay-to-play agreements.” It said the company and Spotify “have a long-standing, symbiotic business relationship” and alleges that UMG offered special licensing rates to Spotify for the song.

The petition also says UMG has fired employees seen as loyal to Drake "in an apparent effort to conceal its schemes."

Universal Music Group said in a statement in response that the "suggestion that UMG would do anything to undermine any of its artists is offensive and untrue. We employ the highest ethical practices in our marketing and promotional campaigns. No amount of contrived and absurd legal arguments in this pre-action submission can mask the fact that fans choose the music they want to hear.”

“Not Like Us,” the wildly popular Lamar single released in May as part of a flurry of dueling tracks by the two artists, includes the lyrics, “Say, Drake, I hear you like ’em young, You better not ever go to cell block one.” It has gotten more than 900 million plays, according to figures listed on Spotify.

Spotify representatives declined immediate comment, but in a statement on a previous case, the company said it “invests heavily in automated and manual reviews to prevent, detect, and mitigate the impact of artificial streaming on our platform,” and in broader public statements has said it has gone to great lengths to mitigate the effects of bad actors on streaming numbers and royalties.

The feud between Drake, a 38-year-old Canadian rapper and singer and five-time Grammy winner, and Lamar, a 37-year-old Pulitzer Prize winner who is set to headline the next Super Bowl halftime, is among the biggest in hip-hop in recent years, with two of the genre's biggest stars at its center.

The two were occasional collaborators more than a decade ago, but Lamar began taking public jabs at Drake starting in 2013. The fight escalated steeply earlier this year. The move to court, while not yet a lawsuit, still represents a major escalation of the feud and involves some of the biggest business partners of both men.

FILE - Rapper Kendrick Lamar appears at the MTV Video Music Awards, on Aug. 27, 2017, in Inglewood, Calif., left, and Canadian rapper Drake appears at the premiere of the series "Euphoria," in Los Angeles on June 4, 2019. (AP Photo, File)