Live from an ESG-scented 100% cotton unisex onesie, it’s an all-new Terrific Tuesday edition of Business Pants. Joined by Analyst-Hole Matt Moscardi! On today's anti-anti-DEI lovefest called December 17th 2024: Random ESG Headlines That I Care About Because Somebody Has To Care About Something and Changing the Methodology for Fortune 100 Most Powerful Executives!Our show today is being sponsored by Free Float Analytics, the only platform measuring board power, connections, and performance for FREE.DAMION1Random ESG Headlines That I Care About Because Somebody Has To Care About Something:Walmart is the 2024 Yahoo Finance Company of the YearThe legacy retailer, once seen as slow to adopt technology as Amazon (AMZN) rose to the forefront, has quietly invested in everything from artificial intelligence and augmented reality to same-day delivery and cheap groceries. The combo punch has led to nearly four quarters of record earnings — and a title as Yahoo Finance's annual Company of the Year award winner.A committee of Yahoo Finance editorial leaders selected Walmart because of its strong year of sales and profits, financial outperformance relative to key rivals like Target (TGT), and a stock price that has reached fresh records in 2024.Another unknown is the impact of Walmart's Nov. 26 decision to scale back its DEI work amid right-wing pressure. The decision came a few days after our interviews with McMillon and Rainey, at which time Walmart had already secured its Yahoo Finance Company of the Year recognition.In a Dec. 2 phone call with Yahoo Finance, Walmart's chief people officer, Donna Morris, defended the company's choice:"We are the exact same company today as we were last week, and we will continue to be the same company," Morris said. "We act with integrity, we serve our customers and our members, and we strive for excellence. So our values are absolutely not changing.""Our values are absolutely not changing, the specific initiatives or terms, they change over time," she continued. The company started moving to "belonging" in early 2023, though Morris said the move wasn't due to pressure from any specific group."When you talk about diversity, equity, inclusion, all in part, there can be communities, and often the largest communities, that step back and say, 'Geez, I'm not sure if I'm even actually included'," Morris explained of the decision.After Floyd's murder, a "majority" of companies felt the need to boost their DEI efforts, but now they are reevaluating. "What we observed and felt was really important is that everyone was part of that work, and that's why we really made the shift," Morris said.‘A huge regression’: Walmart’s DEI rollback incites new racial equity pushA year after the murder of George Floyd, Doug McMillon, CEO of Walmart had a warning for corporate America. The death of Floyd triggered a wave of protest over systemic racism and was “not an isolated event. We have a long history of racism, and we see unacceptable events continue.”Walmart and other large US corporations made pledges to address inequities within their business, ones many feared would be dropped once the focus on Floyd’s killing and its aftermath faded. “We can’t let that be the case,” he wrote, outlining how the company was releasing its “diversity metrics twice a year” and calling on companies to “continue to address systemic racism and the structural inequities that are rooted in this nation’s history of slavery and that persist today”.Times have changed. Last month Walmart became the latest corporation to cave to a rightwing campaign against diversity, equity and inclusion (DEI) initiatives, announcing it would stop using the term DEI altogether, drop DEI trainings, no longer consider race and gender as a means to improve diversity when making offers to suppliers and would not renew a racial equity center committed to addressing “the root causes of gaps in outcomes experienced by Black and African American people”.The union-backed Walmart workers group United for Respect has tried to introduce a shareholder proposal at Walmart’s past two annual shareholder meetings for a third-party independent racial equity audit of the corporation.The racial equity shareholder proposal has come up short of the 20% support it would need for Walmart to discuss it, receiving 18% in 2023 and just over 15% in 2024. Hightower said she planned on reintroducing it at the 2025 annual shareholder meeting in Arkansas.Why Tarang Amin, CEO of E.l.f. Beauty, is Modern CEO of the YearModern CEO set out to recognize an executive who embodies the traits and values we’ve been covering in this newsletter for the last two years: inclusion, accessibility, humility, and innovationEarlier this year, E.l.f. proclaimed its commitment to diversity when it launched “Change the Board Game,” a campaign to encourage corporate board diversity. “I’m proud to say that our board has 78% women and 44% diverse ...
