13 Attorney Generals Send Letter To McMillon

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Walmart’s decision to scale back its diversity, equity, and inclusion (DEI) programs has ignited a firestorm of debate, with conservatives celebrating the move as a course correction while progressive shareholders and Democratic officials decry it as a retreat from corporate responsibility. This cultural and corporate tug-of-war over DEI is becoming a defining battlefront in America’s ongoing political and economic divide, and Walmart’s choice to quietly step back from the ESG (environmental, social, and governance) bandwagon signals a major shift in how even the largest companies are navigating the culture wars.

The retail giant is hardly alone. Major corporations like McDonald’s, Harley-Davidson, Meta, and American Airlines have also reined in their DEI initiatives in recent months, responding to what many see as growing public backlash against “woke capitalism.” Walmart’s retreat is especially significant, given its massive influence as the nation’s largest private employer and a staple in communities across the U.S. The announcement included cutting ties with the Center for Racial Equity, which Walmart launched in 2020 amid social unrest, removing controversial products marketed to children from its marketplace, and ditching the terms “LatinX” and “DEI” in official communications. Walmart also announced it will no longer participate in the Human Rights Campaign Corporate Equality Index, a report often criticized for politicizing corporate behavior under the guise of promoting LGBTQ rights.

For conservatives, this was welcome news. After years of watching corporations champion progressive causes, the rollback signaled what many view as a much-needed return to neutrality. The criticism that DEI programs prioritize ideology over merit, alienate customers, and distract companies from their core business objectives has gained traction in recent years. Walmart’s pivot is seen as evidence that the message is resonating in boardrooms. After all, if Walmart—the undisputed heavyweight in American retail—is willing to make this shift, it suggests that companies are starting to prioritize broader public sentiment over appeasing niche activist groups or progressive investors.

But not everyone is applauding. A coalition of more than 30 Walmart shareholders, representing $266 billion in combined assets, fired off a letter to Walmart CEO Doug McMillon, accusing the company of caving to “anti-DEI bullying” and abandoning its stated values. Their argument? DEI isn’t just about social justice—it’s a business strategy. “Seeing the company retreat from its stated values and the business opportunities associated with a diverse and inclusive workforce is very disheartening,” they wrote, urging Walmart to reconsider its decision and arguing that inclusion fosters innovation and helps attract top talent.

Adding fuel to the fire, a group of 13 Democratic state attorneys general sent their own letter to McMillon, echoing the shareholders’ concerns. They accused Walmart of alienating employees and customers in their states, warning that rolling back DEI policies could hurt the company’s bottom line and tarnish its reputation. The letter also asked Walmart to explain how it plans to protect civil rights in the workplace moving forward.

While these voices continue to push back, Walmart insists its commitment to inclusion remains intact. In a statement to Fox Business, the company reaffirmed that it remains “focused on creating a Walmart for everyone.” U.S. CEO John Furner added that the changes are part of Walmart’s ongoing “journey” to ensure that every customer and employee feels welcome, but without the baggage of polarizing terminology or divisive programs.

The larger question here isn’t just about Walmart; it’s about whether corporate America as a whole is starting to recognize the costs of aligning too closely with progressive politics. The backlash against DEI is part of a broader rejection of ESG frameworks, which have become a lightning rod for criticism from conservatives who argue that these policies prioritize activism over profitability and alienate large swaths of the public.

This isn’t just theoretical. Companies like Target and Bud Light learned the hard way what happens when cultural issues collide with corporate branding. Both faced consumer boycotts after promoting controversial campaigns, resulting in sharp declines in sales and stock prices. Walmart appears to be taking notes, carefully stepping back from policies and branding choices that risk alienating its massive, diverse customer base—particularly in middle America, where the pushback against “woke” policies has been most pronounced.

But make no mistake: Walmart’s rollback is also a gamble. The company risks alienating progressive shareholders, activists, and employees who view DEI as essential to a modern, socially responsible business. Walmart is now walking a tightrope, attempting to satisfy a customer base that spans the political spectrum while minimizing controversy.