Major US companies like Target and Walmart retreat from DEI goals amid rising external pressures
Major US corporations are increasingly rolling back their diversity, equity, and inclusion (DEI) initiatives in response to political and social pressures.
CNBC reported that Target recently announced significant changes to its DEI strategy, joining companies such as Meta, Walmart, McDonald’s, and Tractor Supply in scaling back similar initiatives.
Some corporations have faced pressure from conservative activists, while others cited the US Supreme Court's decision to block affirmative action in college admissions as an influence.
Target, based in Minneapolis, revealed on Friday that it will discontinue its three-year DEI goals, stop external diversity reporting, and end efforts to expand products from Black- or minority-owned businesses.
Kiera Fernandez, Target’s chief community impact and equity officer, outlined these changes in a memo to employees, stating that the updates are based on “many years of data, insights, listening and learning.”
She emphasised the need to align with the “evolving external landscape.” The retailer confirmed that no job cuts would accompany the announcement.
The shift reflects a broader trend among US corporations. Meta, the parent company of Facebook, and Walmart have also scaled back diversity initiatives.
This movement follows earlier actions by President Donald Trump, who, shortly after taking office, signed executive orders to end federal DEI programs and remove officials overseeing these efforts.
The trend has been further fuelled by conservative backlash against corporate inclusion efforts.
Not all companies are retreating from diversity commitments. At its annual meeting last week, Costco reported that more than 98 percent of its shareholders voted against a proposal to assess risks associated with its DEI programs, a move the board had recommended.
Many US corporations had expanded their diversity goals after the murder of George Floyd in 2020. Target, headquartered near where Floyd was killed, had strengthened its DEI efforts at the time.
Then-CEO Brian Cornell described the incident as deeply personal and said it motivated the company to act.
Target had pledged to increase representation of Black employees by 20 percent, support Black entrepreneurs, and spend US$2bn with Black-owned businesses by 2025.
The company also donated US$10m to social justice groups, including the National Urban League and African American Leadership Forum.
Target’s website frequently updated its progress, highlighting efforts to diversify leadership, reduce turnover among employees of colour, and promote women and minorities.
Posts featured messages like “We Are Never Done” and reflected the company’s “steadfast commitment to stand with Black families and fight against racism.”
Despite these efforts, Target and other companies have faced criticism.
About two years ago, Target removed certain Pride Month items after backlash and threats to employees regarding merchandise such as “tuck-friendly” swimsuits for transgender individuals.
Cornell acknowledged that the controversy affected sales but affirmed that Target would continue to recognise heritage months, including Black History Month and Pride Month.
The decision to roll back DEI goals underscores the challenges faced by corporations balancing social initiatives with external pressures.
Target’s most recent diversity report indicated that its workforce included 43 percent white employees, 31 percent Hispanic/Latino, 15 percent Black, and 5 percent Asian workers as of February 2024.
However, the company’s leadership remained predominantly white, with 72 percent of leadership roles held by white employees, compared to 11 percent each for Hispanic/Latino and Asian leaders and 6 percent for Black leaders.
