Target Scales Back DEI Initiatives Amid Evolving Landscape
Target Corporation (TGT) has announced a reduction in its diversity, equity, and inclusion (DEI) efforts. The company will discontinue several existing initiatives, including its three-year DEI goals and external reporting to organizations like the Human Rights Campaign Corporate Equality Index. Additionally, Target will terminate a program designed to increase the proportion of products sourced from Black or minority-owned businesses.
Chief Community Impact and Equity Officer Kiera Fernandez attributed the decision to the "evolving external landscape," emphasizing that it was based on "data, insights, and listening." The company has also renamed its "Supplier Diversity" team to "Supplier Engagement," broadening its focus to include small businesses.
Target's actions align with a trend among corporations scaling back DEI programs. Other companies, including Walmart (WMT), McDonald's, Meta (META), and Google (GOOGL), have also reduced or ended such initiatives. Some have faced pressure from conservative groups or cited the Supreme Court's 2023 ruling restricting the use of race in admissions and hiring.
Notably, Target referenced the Trump Administration's anti-DEI directives in its announcement, suggesting an alignment with those policies. However, Costco (COST) remains committed to its DEI programs, with shareholders recently voting against a review of such practices.
Target's decision comes after backlash over its Pride month displays, which included the sale of LGBTQ+ products that drew protests and boycott calls from conservative groups. Sales reportedly declined during that period. Despite initial resistance, Target subsequently decided to sell certain Pride-themed items online.
Target's DEI efforts gained momentum following the 2020 murder of George Floyd near its Minneapolis headquarters. CEO Brian Cornell has acknowledged the profound impact of that event on the company.