Walmart Inc (NYSE:WMT, ETR:WMT) has been urged to rethink its decision to scale back diversity, equity and inclusion (DEI) policies by a letter from various investor groups and state attorneys general.
The retail giant announced the decision in November, soon after Donald Trump's victory in the US presidential election.
In open letter to CEO Doug McMillon, the group of officials, led by Illinois Attorney General Kwame Raoul, suggested Walmart's board had given in to "bullying and pressure from anti-DEI groups" that had built up around the election campaign.
After the company said it would discontinue participation in a workplace inclusion index and ending a five-year commitment to racial equity training begun following the death of George Floyd, would risk undermining anti-discrimination efforts and important social progress.
"These changes are bad for business, and for Walmart’s customer base, including those in our states,” the letter said.
"Especially considering your prior statements on the critical values of diversity and inclusion, we urge you to reconsider your announced changes.
"By abandoning DEI efforts, you are abandoning the consumer who expect Walmart to deliver on the promises it made."
AGs who co-signed the letter were from California, New York, Minnesota, Massachusetts, Vermont, Connecticut, New Jersey, Maryland, Nevada, Rhode Island, Hawaii and Maine.
Bloomberg also reported on a letter sent by more than two-dozen shareholder groups, according to Bloomberg, including As You Sow, Amalgamated Bank and Mercy Investment Services.
"DEI initiatives aren’t just ‘nice to have,’ they are essential to breaking down the systemic inequities hindering our economy," said Mercy director Caroline Boden in a statement. "Inequity is bad for business and, ultimately, investors."
The letter warned that removing legal safeguards like diversity and equity training "is shortsighted and presents risks that are not worth the political value."
Walmart followed DEI policy tweaks from Starbucks, JPMorgan Chase and Ford over the past year, with DEI initiatives also rolled back at Harley-Davidson (NYSE:HOG) and Jack Daniels maker Brown-Forman Corporation in August and September respectively.
This has continued as the Trump inauguration nears, with Facebook owner Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB) last week announcing both the ditching of fact-checkers and cutbacks to its DEI team and its related programs, claiming the term has become "charged".