Consumers are a diverse group and no business can afford to ignore any of them
of ConsumerAffairsMay 20, 2025
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Walmart and other major U.S. firms tone down diversity language amid political scrutiny, but key initiatives remain.
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New terms like belonging replace DEI, while job postings, supplier programs, and mentorships continue under rebranded frameworks.
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Trump administration pressures fuel quiet legal recalibrationyet most companies resist fully dismantling inclusive policies.
Walmart Inc. made headlines last fall when it announced plans to pull back on its diversity, equity, and inclusion (DEI) initiatives, including removing LGBTQ items from its site and no longer considering race or gender in supplier selections.
But six months later, that shift appears to be more of a semantic reframing than a wholesale retreat from inclusive practices, according to a Bloomberg report.
The term belonging has largely replaced DEI in Walmart’s internal and external communicationsa change that began years earlier. Despite this linguistic pivot, Walmarts job listings still invoke DEI principles, and its website continues to promote products from LGBTQIA+, Black-, Hispanic-, and women-owned brands.
A company spokesperson emphasized Walmarts commitment to inclusion: We want to make Walmart the best place to work and shop.
Subtle rebranding, not dismantling
Walmarts evolution reflects a broader corporate trend. Bloomberg interviewed more than two dozen senior executives and advisors, revealing that many major U.S. companiesdespite political and legal pressuresare preserving the substance of their DEI initiatives while downplaying the language that once defined them.
These adjustments come in response to rising scrutiny. Under President Donald Trumps renewed administration, executive orders have targeted what it terms illegal DEI, pushing federal agencies to investigate corporate DEI programs by May 21. Critics argue DEI policies fuel division and constitute reverse discrimination. Yet legal experts like Jonathan Segal of Duane Morris say these orders havent substantively changed employment law. You can do almost everything you were doing before with modest changes, he said.
Strategic adjustments and investor messaging
Rather than abandon DEI, most companies are tweaking their messaging and structures. Job titles are changingdiversity officers now lead belonging or inclusive workplace teams. Numerical diversity targets are being replaced with broader aspirations. Employee resource groups continue with revised spending guidelines, while health benefits for LGBTQ staff and internship programs focused on underrepresented groups remain intact, now often labeled as “open to all.”
Some firms, like Lowes, have even made public announcements about scaling back, only to reassure investors that little has changed behind the scenes. These are the only changes that we have made, emphasized Lowes HR chief Janice Dupr in December, reaffirming the companys commitment to a diverse workforce.
Legal and PR tightropes
With lawsuits from either side of the ideological divide a looming threat, many companies are walking a fine line. Legal counsel now advises using phrasing like reflect the talent in our communities instead of reflect the diversity, to avoid claims of quotas or bias. It sounds a little bit like semantics, but the words matter, Segal noted, estimating that 75% of firms have modified how they discuss DEI, without fundamentally altering the policies.
Corporate philanthropic gestures are also becoming more discreet. One nonprofit leader described a sponsor pulling a press release to avoid attention, while a banker recounted a firm that secretly funded a Latino tech event but refused public credit.
Companies navigate political crossfire
The pressure is real. Companies fear ending up on Trumps targeted investigation list or being sued by conservative law firms promising pro bono representation to employees alleging reverse discrimination. Yet theres also the risk of alienating workers, customers, and investors by abandoning values many believe are central to modern business.
According to a February survey by Littler Mendelson PC, 55% of executives say theyre more concerned about DEI-related legal risk post-Trumps inauguration. Still, nearly half of those surveyed arent planning to roll back their DEI programs. Theres a return to a new sense of normalcy where companies are adapting, adjusting, said Subha Barry, CEO of workplace consultancy Seramount.
A retired public affairs executive who worked with many Fortune 50 companies during his career told ConsumerAffairs: “Old white people might not like it but if you’re selling diapers, soup, soap and other everyday products, minority group family members are very likely your mostfrequent andloyal customers.
“And you’d better have a diverse staff to effectively market to those customers or you’ll find yourself on the bottom shelf,” he added, referring to consumable items that rely on prime supermarket shelf placement.
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