Shareholders at Walmart and PayPal voted down proposals that challenged the companies’ approaches to diversity, equity, and inclusion (DEI), highlighting growing tensions in corporate America over the future of DEI policies amid political and cultural pushback.
At Walmart, shareholders rejected multiple motions targeting the company’s DEI strategies, including one filed by the conservative National Center for Public Policy Research’s Free Enterprise Project (FEP). That proposal called on Walmart’s board to explain why it did not scale back its DEI efforts until after public pressure from vocal DEI critic Robby Starbuck. The FEP further accused Walmart of merely “repackaging” rather than eliminating its diversity efforts.
Similarly, PayPal shareholders overwhelmingly opposed a measure from FEP that would have required the company to assess the risks associated with its charitable donations. FEP cited concerns about PayPal’s support for organisations such as the Human Rights Campaign, which it claimed could expose the company to reputational and legal risks related to alleged discrimination based on speech or religious beliefs.
Both companies have found themselves at the centre of a wider corporate reckoning over DEI initiatives. Walmart, in particular, faced criticism earlier this year from over 30 shareholders representing $266 billion in assets, who wrote to CEO Doug McMillon describing the company’s rollbacks on DEI as “very disheartening.” Walmart had previously announced that it would no longer use the DEI acronym and had begun scaling back related policies.
Countering the anti-DEI proposals, advocacy group United for Respect urged Walmart shareholders to support an initiative aimed at strengthening racial equity in the company’s operations. Walmart’s corporate secretary Rachel Brand, however, urged shareholders to vote against the proposal, asserting that the company bases hiring decisions on qualifications rather than race or gender.
Elsewhere in the corporate sector, several large firms—including Alphabet, Meta, Amazon, JPMorgan, and McDonald’s—have recently adjusted their DEI commitments, responding to political scrutiny and shifting public sentiment. Tractor Supply Company, for instance, has sought to step back from the conversation entirely. CEO Hal Lawton told media this week that the firm aimed to “remove” itself from political or socially charged discourse.
Meanwhile, consumer behaviour also appears to be shaping corporate DEI strategy. According to data from Placer.ai, foot traffic at Walmart declined 0.1% year-over-year for the week ending 26 May, while Target saw a sharper 2.8% drop. In contrast, Costco—which has maintained its support for DEI and was included in the NAACP’s Black Consumer Advisory list—saw a 3.8% rise in foot traffic over the same period.
Target attributed part of its 3.8% year-on-year decline in first-quarter same-store sales to consumer response following the company’s internal communications on “belonging,” which were publicly released in January.
At Walmart’s annual shareholder meeting on Thursday, one investor queried CEO Doug McMillon on whether the company still supported the LGBTQ+ community and planned to offer merchandise for Pride Month. “We want everyone that works for the company to be excited about being here, and that’s what we’ll continue to work towards,” McMillon responded, stating that Walmart remains committed to serving a broad and diverse customer base.
