Target rolls back DEI initiatives, the latest big company to retreat

Target Reverses DEI Initiatives, Reflecting Broader Corporate Trends

Referenced Sources: CNBC, Bloomberg, The Wall Street Journal

Target Corporation has recently announced a significant shift in its approach to diversity, equity, and inclusion (DEI), joining companies like Walmart, Meta, and McDonald’s in scaling back similar initiatives.

According to a memo addressed to employees, the Minneapolis-based retail giant will cease its three-year DEI goals, discontinue reporting to external diversity-focused organizations such as the Human Rights Campaign’s Corporate Equality Index, and end a program designed to promote products from Black- or minority-owned businesses.

The memo, authored by Kiera Fernandez, Target’s Chief Community Impact and Equity Officer, underscores the company’s decision as part of its evolving strategy. Fernandez stated, “Years of data, insights, and listening have informed this next phase. Our focus remains on staying aligned with the shifting external environment to ensure growth and success for Target.”

This decision follows mounting external pressures on DEI programs, particularly from conservative activists and political shifts. President Donald Trump’s earlier executive orders to curtail government-run DEI initiatives and recent debates over affirmative action have influenced the corporate landscape, pushing some companies to reassess their commitments.

Despite the rollback, Target confirmed that no job losses are associated with the announcement, and the company will continue recognizing heritage months such as Black History Month and Pride Month through curated merchandise collections.

Target’s initial push for expanded DEI efforts gained traction after the tragic murder of George Floyd in 2020, which occurred near its Minneapolis headquarters. At the time, Target CEO Brian Cornell described Floyd’s death as a pivotal moment that spurred the company to strengthen its commitment to inclusion. Over the years, Target implemented ambitious initiatives, including a $2 billion pledge to support Black-owned businesses by 2025 and significant investments in social justice organizations.

However, backlash from certain groups, particularly around Pride Month collections and related controversies, has contributed to shifts in the company’s strategy. CEO Cornell acknowledged that such criticism impacted the company’s quarterly sales performance in recent years.

As diversity commitments across the corporate world face increasing scrutiny, not all companies are following suit. For instance, Costco shareholders recently rejected a proposal to reassess the risks of its DEI programs, demonstrating that opinions on these matters remain divided.

Target’s workforce diversity figures show progress, with 43% of its employees identifying as white, 31% Hispanic/Latino, 15% Black, and 5% Asian, as of early 2024. However, its leadership team remains less diverse, with 72% white representation.

This development marks another chapter in the ongoing debate over the role of corporations in advancing DEI and how they balance business performance with societal expectations.