State lawmakers questioned Walmart officials Monday about the company’s pull back from diversity, equity, and inclusion policies. The global retailer headquartered in Bentonville announced changes to DEI policies in November, following the election of President Donald Trump and anti-DEI campaigns from conservative activists and lawmakers.
On Friday, Walmart’s retail competitor Target became the latest company to announce they’re scaling back DEI initiatives.
At a meeting of the Arkansas Legislative Black Caucus Monday, Walmart spokesperson Michael Lindsey said the changes include using the word “belonging” in cases where DEI was previously used, and sunsetting a racial equity center created after the murder of George Floyd in 2020. The center was created with funding for five years, which the company has chosen not to renew. Policies facing Walmart employees, Lindsey said, have not changed.
“We still support and listen to our social resource groups that provide feedback and provide input on policy on merchandise. We still want to create a sense of belonging for associates,” Lindsey said. “We want to make sure belonging is the key focus for the company moving forward.”
Caucus members voiced concern over the company’s shift away from specific policies to support minority communities. Sen. Fred Allen, D-Little Rock, was the first of several lawmakers to comment on Walmart’s previous opposition to an anti-DEI bill in the state legislature.
Allen said he has been contacted by Walmart in previous years to oppose legislation to reduce DEI initiatives in the state. One bill Allen mentioned was SB71, which would have banned affirmative action efforts in Arkansas. SB71 ultimately failed in the 2023 legislative session, but the bill’s sponsor Sen. Dan Sullivan, R-Jonesboro, has reintroduced similar legislation as SB3 in the current session
“Now it seems like there’s been a shift,” Allen said. “Would you please help explain that to me so I have a better understanding?”
Lindsey said the company’s policy has changed to focus on legislation directly impacting their business. When asked by Sen. Reginald Murdock, D-Marianna, if the company opposed SB3, Lindsey said “I don’t think we have a position this year.”
Murdock asked again for the company to share their stance on the bill, which he said would have far-reaching implications for minorities in the state.
“I want to give you the opportunity to please say to us that you’re not going to stand on the money, and you’re going to stand for what’s right to the people. This is not nothing you didn’t do before.”
Lindsey replied “I can speak to internal, how we focus on our associates and how we treat our associates.”
Pepe Estrada, the Director of Constituent Relations at Walmart, called the change an “evolution” of the company’s diversity, equity, and inclusion journey.
“The next stage of that journey for us is about belonging and experience to make sure that all individuals, no matter who they are, where they come from, feel like they belong at Walmart.”
Estrada emphasized the company would not tolerate “any kind of bullying, discrimination, or harassment of any individual.”
Sen. Fredrick Love, D-Little Rock, asked if the company’s commitment to equity and inclusion remained the same.
“For our associates it’s a focus of belonging where everyone feels included, yes absolutely.” Lindsey said.
Sen. Jamie Scott, D-Little Rock, also asked why the company was not opposing the proposal to ban affirmative action this year.
“I thought the opposition was because of the data showing there would be a direct impact to the business,” Scott said. “And this year we’re saying that the focus is directly the business impact.”
“How do each of you know how minorities are feeling because of this decision that has been made?” Scott then asked, saying the move felt “shortsighted.”
Rep. Ashley Hudson, D-Little Rock, noted the company has a special program to hire veterans.
“Veteran preference is a form of a diversity, equity and inclusion program, so are you going to end veteran preference programs for hiring? Are you going to end disabled employee hiring programs?”
Lindsey said hiring processes have not changed as a result of the changes to DEI policy at Walmart. Hudson then asked if the company would continue seeking diversity in vendors and suppliers.
Walmart spokesperson Kevin Thompson said the company still wants to incubate suppliers made in the United States.
Lindsey tried to assure lawmakers the policies will not impact hiring or current employment.
“There’s always going to be a nondiscrimination focus on any sort of hiring at Walmart.” he said.
Estrada said Walmart has always focused on hiring the “best and brightest” candidates.
Scott said the out-of-state perception of Arkansas is having an impact on Walmart employees, adding that she spoke to some corporate associates whose families do not want to live in the state.
“They are concerned about the policies that have been passed these last two or three general assemblies,” Scott told the Walmart representatives. “I know that impacts y’all being able to recruit people to live in this state.”
Scott then gave an impassioned speech about how the company’s resolve to not engage in DEI politics this legislative session could have consequences for Walmart’s workforce.
“When y’all keep saying stuff is not gonna change and we’re going to continue and go back to our roots, to me that’s saying like when people say ‘I don’t see color,’ I’m a Black woman, you’re going to see that every day that I walk into this door and every environment that I walk into, and it’s offensive to say that you don’t see minorities.”
Scott called the situation a “slap in the face” to corporate employees concerned about their future in the state.
Murdock urged Walmart leadership to listen to the concerns voiced in the meeting.
“There was a time when you were on the forefront of making sure that those programs that you have in place, the Walmart Foundation providing assistance to communities in the Delta and other areas — you were on the forefront. All of that is still necessary.
“Nothing has changed in this country to make what you are changing a necessity. As a matter of fact, it’s probably even worse.”
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