Jamie Spencer
Retailer Phases Out Diversity and Inclusion Initiatives
Target announced on Friday that it will roll back its diversity, equity, and inclusion (DEI) programs, including initiatives aimed at increasing workforce and product diversity. The retailer will also discontinue its external reporting to diversity-focused groups such as the Human Rights Campaign’s Corporate Equality Index.
Details of the Policy Change
In an internal memo viewed by CNBC, Kiera Fernandez, Target’s Chief Community Impact and Equity Officer, explained the company’s decision:
“Many years of data, insights, listening and learning have been shaping this next chapter in our strategy. As a retailer that serves millions of consumers every day, we understand the importance of staying in step with the evolving external landscape, now and in the future – all in service of driving Target’s growth and winning together.”
The Minneapolis-based retailer will discontinue its three-year DEI goals, stop reporting diversity progress to external organizations, and end programs that prioritized merchandise from Black- and minority-owned businesses.
Target Joins Other Corporations in DEI Rollback
Target is the latest major company to scale back its DEI initiatives, following similar moves by Tractor Supply, Meta, Walmart, and McDonald’s. Some of these companies faced conservative activist pressure, while others referenced the U.S. Supreme Court’s ruling against affirmative action in college admissions as a factor influencing their corporate policies.
Influence of Trump’s Executive Orders
The rollback comes shortly after President Donald Trump issued executive orders immediately following his inauguration to end federal DEI programs. These orders also placed government officials overseeing DEI efforts on leave, signaling a significant policy shift from the previous administration.
Target’s DEI Commitments After George Floyd
Target’s DEI commitments date back years but intensified after the murder of George Floyd in 2020, which took place near its headquarters in Minneapolis. At the time, CEO Brian Cornell expressed deep concern, stating:
“That could have been one of my Target team members.”
Target had pledged to advance equity within its workforce and supply chain, aligning with the broader corporate response to the nationwide Black Lives Matter protests.
Future Implications
As corporate America reassesses its DEI strategies, Target’s decision reflects a broader trend of companies shifting their focus amid political and economic pressures. The move is likely to spark debate among stakeholders, from employees and advocacy groups to investors and customers.
