The DEI Reckoning: Target’s Retreat and the Fragility of Corporate Allyship
In 2020, Target’s CEO Brian Cornell pledged to confront systemic racism, vowing to invest $2 billion in Black-owned businesses by 2025.
By January 2025, Target dismantled those promises, rolling back diversity, equity, and inclusion (DEI) initiatives—scrapping supplier diversity programs and ending LGBTQ+ advocacy surveys. This retreat raises urgent questions: Is corporate allyship merely performative?
The Unraveling of a Promise
Target’s reversal includes abandoning its Racial Equity Action and Change (REACH) initiative, which supported Black entrepreneurs, and rebranding “Supplier Diversity” as “Supplier Engagement.” Critics argue this erases accountability. The company also withdrew from the Human Rights Campaign’s Corporate Equality Index.
This mirrors broader trends: Walmart, Meta, and McDonald’s have scaled back DEI programs, citing political pressure and lawsuits. Yet Target’s Minneapolis headquarters—a city forever linked to George Floyd’s murder—once positioned it as a racial equity leader. Now, it prioritizes “evolving external landscapes” over internal commitments.
The Political Calculus
Days before Target’s announcement, President Donald Trump signed an executive order targeting federal DEI programs.
Conservative activists like Robby Starbuck framed DEI as “discriminatory,” threatening boycotts. Target, still recovering from 2023’s Pride Month backlash, chose survival over solidarity.
But Costco, JPMorgan, and Apple resisted similar pressures. JPMorgan CEO Jamie Dimon publicly defended DEI, stating, “Bring them on,” and reaffirmed the bank’s commitment to reaching out to diverse communities, including Black, Hispanic, LGBTQ, and veteran populations. Target’s retreat asks: Is DEI a checkbox or a genuine commitment?
The Ripple Effect on Black Businesses
Target’s $2 billion pledge to Black-owned businesses was more than a PR gesture—it was a lifeline. The REACH initiative supported Black entrepreneurs in scaling products for mass retail, while Roundel, Target’s media arm, funded promotions for diverse brands. Rolling back these programs risks erasing years of progress. Eric Schiffer, a reputation management expert, called the decision “brand suicide” for a retailer serving a diverse customer base.
The fallout extends beyond balance sheets. Sylvester Turner, a Texas congressman, lamented on social media: “Target is making a mistake… its customer base is highly diverse”. Meanwhile, DelilahM, a Nevada-based X user, applauded the move as a return to “hiring based on ability” —a sentiment that ignores systemic barriers Black entrepreneurs and workers still face.
A Test of Corporate Courage
Target’s reversal underscores a painful truth: Corporate allyship is often conditional. DEI flourished in 2020 as companies scrambled to align with a racial justice movement. Today, under political fire, many are folding. Yet Costco’s defiance proves alternatives exist. By framing DEI as a driver of innovation—diverse teams fuel the “treasure hunt” experience shoppers love—Costco ties inclusion to business success
Brian Cornell once called DEI “fuel for Target’s growth.” If true, why abandon it?
The Path Forward
Target’s decision tests corporate accountability. Will businesses prioritize short-term politics or long-term equity? For Black entrepreneurs and allies, the answer demands vigilance—and reevaluating where we spend.
Progress isn’t a three-year goal. It’s a lifelong commitment. Target’s shift from vanguard to vacillator is a cautionary tale: Hold corporations to promises made when the world watches.
Tony O. Lawson
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