Walmart Rolls Back DEI: Navigating Today’s Social and Political Climate

With the attack on all the social and environmental progress we have made, do we abandon the work or stand firm?

Recently, one of the world’s largest companies caved to mounting political pressures and changed its whole approach to diversity, equity and inclusion (DEI). In recent months, WalMart has stopped using the term “DEI” altogether. The corporate giant has taken many steps back on DEI-related initiatives: for example, it no longer considers race and gender when making offers to suppliers, and it will not renew its centre for racial equity.

Walmart’s decision reflects changing discourse in the US, where DEI has become highly politicized. How is the discourse around DEI changing in Canada? How can organizations that care about equity navigate this fast-shifting context?

On December 17, Inclusivity Insight CEO Wyle Baoween hosted a webinar with consultant and specialist Anton Joseph about how organizations are facing this new and evolving political reality. They shared how organizations and DEI advocates can stick to their principles and engage with – rather than shy away from – these challenging but essential conversations.

The Pushback

The pushback against DEI is visible in legislation, government policy, and the media (particularly social media) as it relates to what companies are doing. Companies worry what their customers might say if they address a specific holiday or do something seen as being “woke.”

A History of the Word “Woke”

Woke is a complex word, with its roots in Black civil rights efforts in the early 20th century. In general, it refers to having an awareness of social injustice. Terri Givens, a professor of political science at McGill, grew up in the US, and the term “woke” was used widely among the Black communities of which she was a part. In a recent article, Givens said “I’ve heard this term throughout my life. It’s a term that means, ‘We need to wake up to the fact that [discrimination is] happening to us.'” The term was also widely used during Black Lives Matter protests and other social justice movements. Since then, the political right has begun using the term to criticize any people, ideas, or initiatives that they see as being too progressive. The word has become a “blunt instrument of the right,” Givens said. The real meaning of the term – and its historical importance to Black communities – has been lost, as the term has become so thoroughly appropriated.

“A lot of organizations are making decisions out of fear of reprisal from employees or customers,” said Joseph.

Joseph drew parallels between current DEI efforts and past movements for social justice, such as civil rights initiatives and the activism of the Sixties. In all these cases, there was a big pendulum swing in terms of efforts to build a more just society, and a pushback arose in response.

One issue is that some people have experienced DEI as being “accusatory,” Joseph said. People who have felt sidelined by DEI conversations are now advancing their opinions in a more assertive way. This pushback, then, is a call for changing the way that DEI advocates and organizations develop, implement, and talk about equity-related initiatives.

Companies and organizations are responding to the pushback in three main ways:

Retreat: Organizations adhere to the local norms and laws of the hostile jurisdiction, even if that means diluting some of their DEI commitments.
Internalize: Organizations adopt DEI policies internally, but do not push for change in the wider society.
Advocate: Organizations seek to shift local laws and social norms in a pro social equity direction.

Data on the extent of the backlash and its impact on Canadian companies remains limited. We do know that some companies are renaming their DEI initiatives to avoid damage to their brand. But Baoween and Joseph agreed that DEI advocates should continue to advocate by taking a principled, long-term view and approaching this conversation in nuanced and open-minded ways.

What Are DEI Advocates Doing Now?

Change your opinions, keep to your principles. Change your leaves, keep intact your roots.

– Victor Hugo

The DEI conversation is not going away; there are many people who care deeply about making organizations more equitable and inclusive. But DEI advocates cannot be complacent or hold the same attitudes and assumptions they had a few years ago; initiatives for DEI now face increased public scrutiny. It is no longer enough for companies to say they do this work “because it’s the right thing to do.”

In this changing context, there are four main ways to advocate for DEI principles:

Build a solid business case:
Focus on impact rather than names and acronyms
Be inclusive and engage everyone
“Call in” rather than “call out”

Above all, to be authentic and sustainable, DEI initiatives need to be fully integrated with the work, vision, purpose and mission of an organization. Only these kinds of changes will make DEI efforts transformative rather than performative. That way, these efforts make sense within the goals and work of the organization as a whole; they become transparent and defensible to scrutiny.

Example: Investing in Community

One company Joseph works with decided to build a car dealership in a low-income neighbourhood that faced many socio-economic challenges. This was a multi-million dollar investment. Rather than be deterred by the challenges within the community, this company decided to invest in training and education opportunities for community members. It built networks of trusting local relationships. It deepened those bonds by commemorating events important within the culture of the community. From these relationships grew a loyal customer base. In these ways, the commitment was tangible and deeply integrated with the overall business aims of the company.

As well, there is now an opportunity for deep and rich conversations that include real debate. If DEI professionals can support these difficult conversations and provide a broader perspective, they might be able to bring more people on board.

Moving Forward with DEI

Overall, it is important not to shy away from these challenging conversations, but to see them as an opportunity to (a) ensure that DEI commitments are real and integrated with the core work of the organization and (b) understand other perspectives.

A recent Globe and Mail article summarized the controversy over DEI initiatives this way:

Some see these efforts as a vehicle for social outcomes, while others think it fails to maximize shareholder value. It’s none of that. This work is about managing the risks as opportunities we face in a changing world. It is valuable and we need it. It doesn’t matter what we call it.

Throughout this current dialogue around DEI, advocates should take the long view. Progress occurs over long stretches of time, said Baoween, “sometimes faster, sometimes slower.”

This article is based on the webinar ”Walmart Rolls Back DEI: Navigating Today’s Social and Political Climate’ hosted by Inclusivity December 2024. For more information, please contact [email protected].