Target retreated on DEI. Then came the backlash

illuminem summarizes for you the essential news of the day. Read the full piece on CNN or enjoy below:

🗞️ Driving the news: Target (see sustainability performance) is facing backlash after announcing a rollback of several Diversity, Equity, and Inclusion (DEI) initiatives, including minority hiring goals and racial equity committees
• The move, part of a new strategy called "Belonging at the Bullseye," was framed as an adjustment to changing external pressures
• However, customers, civil rights activists, and even heirs of a Target co-founder have criticized the decision as a betrayal of the company’s previous commitments

🔭 The context: In response to political and legal pressures, many Fortune 500 companies, including Walmart and John Deere, have scaled back DEI efforts, but Target has faced the strongest backlash due to its progressive brand identity
• After George Floyd’s murder in 2020, Target had positioned itself as a corporate leader in racial justice efforts, pledging to increase Black workforce representation and support Black-owned businesses
• Now, with its DEI rollback, many consumers feel misled, leading to protests and boycott calls

🌍 Why it matters for the planet: The controversy highlights the growing divide between corporate diversity commitments and shifting political pressures
• Companies face difficult choices between maintaining DEI initiatives and avoiding legal or political backlash, potentially impacting workplace diversity and economic opportunities for minority-owned businesses
• The pushback also raises broader questions about corporate accountability in social justice efforts

⏭️ What's next: Target's financial impact remains uncertain, but early data suggests a drop in store visits following the announcement
• Calls for boycotts, including a 40-day campaign led by Pastor Jamal Bryant, could influence the company’s response
• Whether Target follows the path of Bud Light, which suffered long-term sales losses after a political backlash, will depend on how its core customers react

💬 One quote: “Black people supported Target. They went to that space because of what Target had done. People are questioning whether they were really behind this in the first place or if it was a marketing stunt.” – Former Target executive (anonymous)

📈 One stat: Target’s foot traffic dropped 4% in the week following its DEI rollback announcement, reversing four consecutive weeks of growth

See here detailed sustainability performance of Target

Click for more news covering the latest on corporate social responsibility