02-06-2025
Target announced it was reducing its diversity, equity, and inclusion initiatives, including a program established to help Black employees build their careers, improve the experience of Black shoppers, and promote Black-owned businesses. In other DEI goals, Target sought to hire and promote more women and members of racial minority groups and recruit more diverse suppliers. This decision has received a strong response, with some questioning Target’s previous commitments to promoting progressive values. The company and its foundation donated around $384 million last year to groups that work on Black empowerment and LGBTQ+ acceptance. It had supported LGBTQ+ inclusion for many years, being one of the first major retailers to do so. However, this end of DEI decision did not surprise some, given Target’s decision not to carry Pride Month merchandise in 2024. Civil rights activists called for a Target boycott beginning February 1, the start of Black History Month. They asked customers to buy from minority-owned brands instead.
Costco is one major retailer that decided to continue its DEI efforts. In 2024, some shareholders proposed a report on the risks of continuing its DEI efforts. It had been submitted by a conservative Washington think tank. More than 98% of company shares rejected the proposal. The board rejected the proposal, responding that it viewed its “commitment to an enterprise rooted in respect and inclusion” as “appropriate and necessary.” Specifically, these efforts reflect the diversity of the customer base and help bring “creativity and originality” to its inventory. Costco asserted that its efforts are “legally appropriate.” Nineteen state Attorneys General (led by Iowa and Kansas) sent a collective letter warning Costco not to continue the practice. They consider Costco’s policies broadly “unlawful discrimination,” and demanded that Costco let them know within 30 days that it has dropped its DEI programs or explain why it has “failed to do so.”