Target announced the termination of its Diversity, Equity, and Inclusion (DEI) program, joining other major corporations like Walmart, Amazon, and Meta in scaling back similar initiatives. This decision follows increased scrutiny of DEI policies by conservative groups and a recent directive from former President Trump urging federal agencies and private companies to end such programs.
Target’s move has drawn criticism, particularly given the company’s reputation for inclusiveness and its diverse customer base. Some analysts suggest this decision could negatively impact Target’s brand image, potentially alienating a significant segment of its consumers. Eric Schiffer, of Reputation Management Consultants, characterized the move as “brand suicide” for a company like Target with a broad and inclusive audience.
In addition to ending its DEI program, Target is also discontinuing its Racial Equity Action and Change (REACH) initiative. This program, launched in 2020, committed over $2 billion in investments with Black-owned businesses by 2025. REACH encompassed plans to introduce more than 500 Black-owned brands and leverage Target’s in-house media company, Roundel, to provide increased visibility for diverse-owned businesses through paid media placements. The company is also rebranding its “Supplier Diversity” team to “Supplier Engagement,” aiming to better reflect its global procurement strategies.
This decision has sparked debate on social media platforms, with Congressman Sylvester Turner of Texas criticizing the move on X (formerly Twitter), highlighting the incongruity between ending DEI goals and serving a diverse customer base. The broader context of DEI programs stems from the nationwide protests in 2020 following police shootings of unarmed Black individuals. These programs, intended to foster opportunities for underrepresented groups including women, ethnic minorities, and the LGBTQ+ community, have faced opposition from conservative groups who argue they discriminate against other demographics and detract from merit-based hiring and promotion practices.
Target maintains that this decision reflects a strategic evolution informed by “data, insights, listening and learning,” according to a memo from Kiera Fernandez, Target’s chief community impact and equity officer. Fernandez emphasized the importance of adapting to the changing external environment. The company declined to provide further comment beyond its official statement.
Target’s 2023 workforce diversity report reveals a relatively balanced employee demographic. Women constitute 56% of the workforce, while people of color represent 56% of the employee population.
In conclusion, Target’s decision to discontinue its DEI program reflects a broader trend among major corporations facing pressure from conservative groups and evolving political discourse. This move has sparked controversy and raised questions about the future of DEI initiatives in corporate America and their impact on brand reputation and consumer relationships. The long-term consequences of this decision for Target and its stakeholders remain to be seen.
