Human Rights Campaign Issues Red Flag on Wal-Mart

Wal-Mart was given a red “do not buy” rating in the new consumer guide of The Human Rights Campaign, the nation's largest gay rights group, which is sure to cut out a large portion of overall retail sale, just in time for the holiday shopping season.

Wal-Marts refusal to offer benefits to the partners of its gay and lesbian workers, has brought about gays and their supporters to shop elsewhere, stating that the USA's biggest private employer has "more work to do in furthering equality."

"We're proud of our diversity initiatives and we think we are taking the right steps," Wal-Mart spokesman David Tovar said.

In HRC's 2008 Corporate Equality index, which assigns ratings to 519 large companies, Wal-Mart rated a red 40 on a scale of 100, which was a drastic change from a yellow 65 in 2006. Wal-Mart was one of 54 other companies that scored 45 or lower in this years addition.

Companies that also scored in the red category: Toys R Us, RadioShack, and AutoZone.

However, Target rated a "green" 80, which means "consumers should make every effort to support these businesses."

Daryl Herrschaft, director of HRC's workplace project, says Wal-Mart had been moving toward more gay-friendly practices. In 2003, Wal-Mart added sexual orientation to its non-discrimination policy.

In December 2005, executives of HRC were invited to the first of two meetings at the company's headquarters in Bentonville, Arkansas to discuss domestic partner benefits.

Wal-Mart's contributions to gay organizations angered conservative groups who threatened a boycott.

In June, the company disclosed a policy to avoid "highly controversial issues." which ended the talk on gay benefits.

Tovar says he will not "speculate" on whether the rating would “hurt holiday sales”.