Target to End DEI Initiatives Following Trump's Executive Order on Diversity Programs Summary

 

Target to End DEI Initiatives Following Trump's Executive Order on Diversity Programs
Summary:

• Target joins Amazon, Walmart, and others in scaling back DEI programs
• Move follows President Trump’s order to end DEI initiatives in federal agencies
• Target rebrands its "supplier diversity" team as "supplier engagement"

Target announced on Friday that it will end its diversity, equity, and inclusion (DEI) program this year, marking the latest U.S. corporation to scale back such initiatives amidst growing pressure from conservative groups. The move comes after several large companies, including Walmart, Amazon, and Meta, reduced or eliminated their DEI policies over the past year. Additionally, President Donald Trump recently issued an executive order to federal agencies, mandating the termination of DEI programs and calling on private companies to cease "illegal DEI discrimination and preferences."

While the decision to end DEI initiatives drew considerable backlash, some pointing to Target’s reputation for inclusivity as a key factor in attracting a younger, more diverse customer base, others see it as a misstep. Eric Schiffer, a reputation management expert, described it as "brand suicide" for Target, which has prided itself on inclusivity.

Along with ending its DEI programs, Target will also discontinue its Racial Equity Action and Change (REACH) initiative, which aimed to invest over $2 billion in Black-owned businesses by the end of 2025. This program included efforts to increase the visibility of Black-owned brands, including partnerships with Target’s media arm, Roundel, for paid advertising.

Additionally, the company is renaming its "Supplier Diversity" team to "Supplier Engagement" to better align with its global procurement processes.

Rep. Sylvester Turner, representing Texas’ 18th District, criticized the decision, emphasizing that Target’s highly diverse customer base made ending DEI goals a poor choice.

DEI programs, which aim to provide opportunities for women, ethnic minorities, LGBTQ+ individuals, and other underrepresented groups, became widespread after the 2020 protests against police brutality. However, these programs have been criticized by Trump and conservative factions for allegedly discriminating against other groups and for undermining merit-based hiring and promotion.

In a memo, Target's Chief Community Impact and Equity Officer, Kiera Fernandez, explained that the company’s decision reflects the need to stay in tune with the "evolving" external landscape. The company did not provide additional comments beyond the memo.

According to Target’s 2023 workforce diversity report, 56% of its employees were women, and 56% were people of color. The retailer also made headlines in 2016 by allowing transgender employees and customers to use restrooms that match their gender identity, which sparked national debate.

At a recent retail conference in New York, CEO Brian Cornell stated that Target's success has been built on investing in people and fostering a culture of care and growth.

Meanwhile, Costco Wholesale shareholders recently voted overwhelmingly against a proposal requesting a report on the risks of maintaining diversity and inclusion initiatives.

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