DEI Faces Criticism: Target Rejects Diversity Initiatives While Costco Maintains Them—Here Is A List Of Big Businesses Eliminating DEI.
Following President Donald Trump’s election, Target became the latest company to abandon diversity, equity, and inclusion goals on Friday. Trump has already taken steps to end federal DEI programs and criticized DEI during this week’s World Economic Forum in Davos.
Reuters, January 24 Target (TGT.N), the latest American company to abandon such programs in the face of intense criticism from conservative groups, announced on Friday that it is discontinuing its diversity, equality, and inclusion program this year.
President Donald Trump ordered federal agencies to end DEI programs earlier this week and urged private companies to stop “illegal DEI discrimination and preferences.” Over the past year, a number of large companies have rolled back their DEI policies, including Walmart, Amazon (AMZN.O), and Meta (META.O), opening new tabs.
However, the Minneapolis-based retailer’s choice drew a lot of criticism, with some pointing out that the business’s inclusive reputation has helped it draw in a younger, more varied clientele.
“For Target, with an inclusive audience, this is their version of brand suicide,” stated Eric Schiffer of Reputation Management Consultants, a Los Angeles-based firm that provides advice to Hollywood celebrities and American corporations.
Additionally, Target announced this year that it was discontinuing its Racial Equity Action and Change (REACH) programs, which included a commitment to invest more than $2 billion in Black-owned companies by the end of 2025. Plans to include over 500 Black-owned brands were part of the project, which also included a funding program from its in-house media company, Roundel, to boost paid media exposure for diverse-owned brands.
“Supplier Engagement” will replace the “Supplier Diversity” team, the retailer noted, in an effort to better represent “its inclusive global procurement process.”
According to Sylvester Turner, the congressman representing Texas’ 18th Congressional District, “Target is making a mistake by ending its DEI goals with its customer base being highly diverse,” on X.
Following nationwide protests in 2020 over police shootings of unarmed Black people, DEI programs—which aim to advance opportunities for women, ethnic minorities, LGBTQ+ individuals, and other historically underrepresented groups—became increasingly popular. However, Trump and conservative organizations have blasted them for undercutting merit in hiring and advancement and for discriminating against other Americans.
Kiera Fernandez, Target’s chief community impact and equity officer, stated in a memo that “many years of data, insights, listening, and learning have been shaping this next chapter in our strategy,” emphasizing the importance of keeping up with the “evolving” external world. Beyond its statement, the corporation remained silent.
Target’s 2023 workforce diversity report states that 43% of its employees are men and 56% of its employees are women. Race and ethnicity were also evenly distributed, with 43% of employees being white and 56% being persons of color.
Target attracts a more diversified consumer base than its larger rival Walmart (WMT.N), which announced cuts to several of its DEI programs late last year, thanks to its Pride month LGBTQ-related merchandise. Target, however, removed several LGBTQ-themed items from their stores in 2023 due to a rise in customer-employee altercations and instances of stuff being thrown on the ground.
During a contentious national debate on the subject, Target announced in 2016 that transgender staff and patrons could use the restroom that corresponded to their gender identity. It was the first large retailer to take action.
Target CEO Brian Cornell said the company’s success in recent years can be attributed to investing in people and fostering a culture of growth and care at a retail conference this month in New York.
Shareholders at Costco Wholesale COST.O unanimously rejected a resolution on Thursday that sought a report on the dangers of continuing the company’s diversity and inclusion efforts.