O’Leary Ventures Chairman Kevin O’Leary recently joined ‘The Big Money Show’ to share his insights on Walmart’s decision to scale back its DEI initiatives and President-elect Donald Trump’s pledge to raise tariffs on Mexico, China, and Canada. This move by Walmart, along with other major companies in the U.S., has sparked a significant debate about the future of diversity, equity, and inclusion efforts.

Unraveling the Impact of DEI Rollbacks on Major Companies

Major Companies Backing Out of DEI

In the U.S., major companies are increasingly distancing themselves from diversity, equity, and inclusion (DEI) efforts. Walmart, one of the largest employers with over 1.6 million employees and a market cap of $800 billion, announced on Monday that it is stepping away from such initiatives. The company's statement emphasized their intention to foster a sense of belonging and open doors to opportunities for all.Going forward, Walmart will no longer participate in the Human Rights Campaign's Corporate Equality Index, stop selling LGBTQ-related items on its website, and discontinue racial equity training. This decision has drawn attention and sparked discussions about the role of DEI in the corporate world.

Conservative Backlash and State Resolutions

Under mounting pressure from conservatives, many major companies are facing attacks on their DEI initiatives. State lawmakers and governors have passed resolutions to restrict DEI on college campuses and in the public sector. For example, Republican Utah Gov. Spencer Cox signed a bill into law this year prohibiting diversity training and hiring and inclusion programs at universities and in state government.On the higher education front, the University of North Carolina board of governors committee voted to eliminate DEI requirements and roles as part of a growing backlash against DEI ideology in schools across the country.

Companies Facing Lawsuits and Policy Changes

Several companies have faced and lost lawsuits due to their DEI policies. Ford Motor Company, a Michigan-born Fortune 500 company, announced in August that it was rolling back its DEI efforts. The company pulled out of the HRC Corporate Equality Index and "best places to work" lists and stated that they do not use hiring quotas or tie compensation to specific diversity goals.Harley-Davidson also made a significant announcement in August, dropping DEI shortly before Ford. The 120-year-old motorcycle company said it has not operated a DEI function since April 2024 and does not have hiring quotas or supplier diversity spending goals.The home-improvement retail chain Lowe's also scaled back its DEI within the same month. Following suit with other companies, Lowe's discontinued its participation in surveys for the Human Rights Campaign and reportedly ended sponsorship and participation in events outside the scope of its business imperatives.Starbuck took credit for Lowe's changes, stating that they were made after he pressured the company.

Other Companies in the Fold

Other companies that have rolled back their DEI efforts include John Deere, Tractor Supply, and Caterpillar. These companies' decisions have added to the growing trend of companies reevaluating their DEI strategies in the face of various challenges and pressures.In conclusion, the rollback of DEI initiatives by major companies is a complex issue with far-reaching implications. It highlights the ongoing debate about the role and effectiveness of DEI in the corporate world and the influence of conservative forces in shaping these policies. As companies continue to navigate these changes, it remains to be seen how DEI will evolve in the future.