Target withdraws from diversity programs – strategy change following political pressure

Target ends its diversity programs in response to political pressure and focuses on a strategic realignment.

1/27/2025, 5:30 PM
Target
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Eulerpool News Jan 27, 2025, 5:30 PM

The US retail giant Target ends its Diversity, Equity, and Inclusion (DEI) programs, becoming the first major company to move away from these initiatives following the inauguration of President Donald Trump.

The company announced on Friday that it will no longer communicate publicly visible DEI goals in the future and that career advancement programs for Black employees will be phased out "as planned" in 2025. Further measures are to follow.

This step comes a few days after Trump restricted similar programs within U.S. federal agencies by decree. The government considers such initiatives to promote minorities as "unlawful" and has begun to regulate companies with federal contracts more strictly in this regard.

Target stated that the decision is part of a strategic realignment to drive growth and adapt to the "changing external environment.

Many U.S. companies increased their efforts to promote diversity after the murder of George Floyd in May 2020. Target, based in Minneapolis, invested ten million US dollars in social justice initiatives at the time and aimed to include more products from black-owned businesses in their assortment.

In the meantime, Target has replaced the "Diversity, Equity and Inclusion" section on its website with the new initiative "Belonging at the Bullseye." The company employs around 400,000 people and operates nearly 2,000 stores in the USA, with an annual revenue of over 100 billion US dollars.

Target's change of course occurs in a climate of increasing political and social pressure.

The company also announced that it will continue its "Supplier Diversity" program under the new name "Supplier Engagement" and will withdraw from the Human Rights Campaign's Corporate Equality Index, a ranking that evaluates companies based on their commitment to the LGBT+ community.

While Target pulls back, other corporations stick to their DEI programs. Costco shareholders recently rejected a proposal that would have required the company to disclose legal risks associated with diversity initiatives.

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