Target just got body-slammed by its own DEI strategy. A class-action lawsuit, a national boycott, and a $16 billion. And now the DOJ is investigating companies who’ve received federal funding and have DEI programs. No warning shots were fired; this is a full-blown corporate disaster. CEOs take note because Target will not be the last to succumb to the pitfalls of DEI done wrong.
How Did Target End Up Here?
Let’s examine the 3 R’s: Revenue, Reputation and Retention.
Revenue In late November 2024, Target’s stock price nosedived 22%, wiping out nearly $16 billion in market cap after a nationwide backlash against its DEI and Pride initiatives.
Reputation Target is facing a class-action lawsuit led by the City of Riviera Beach Police Pension Fund, which alleges Target misused investor funds for “political and social goals” and misled shareholders about the risks of its DEI initiatives. Investors claim they were duped into buying artificially inflated stock.
Retention Target rolled back its DEI programs in an attempt to stop the financial damage. Instead, they triggered a boycott from Black leaders and vendors, who are now urging consumers not to buy their products from the retailer.
Yes, all as a result of poorly executed diversity, equity and inclusion programs.
What CEOs Need to Learn—Before They’re the Next Target Boycott case study
We’re well past this being about supporting or not supporting diversity. Things are getting real and if every major retailer takes a 20% hit, it could have a devastating impact on our economy. It’s time to clearly differentiate between business strategy and political activism. When companies cross that line, they stop being retailers and start being battlegrounds, as we’re seeing play out in real time. Here are five ways how to avoid the Target boycott fate:
Tie DEI to Business. Period
Yes, you’ll piss some groups off, but this is no longer optional. If your diversity initiatives don’t strengthen your workforce, expand your market, or drive revenue, rethink them. Now. DEI should be about smart business, not social signaling.
Risk Assess BEFORE Announcing
There’s blood in the water and getting this wrong could be your undoing. If your DEI programs have the potential to alienate investors, customers, or employees, you need a mitigation strategy before announcing your change. After the fact is too late.
Control the Narrative
Or someone else will. Target’s narrative is now led by angry consumers and investors who claim the retail giant misled them. These are trust issues. Be transparent about what DEI means for your company, how it’s executed, and how it impacts financial performance. Again, it will offend some, but it’s the only narrative that is neutral, logical and sustainable. Do it.
Avoid Political Crossfire
Consumers come to you for products, services, and value. Give them that, and be consistent. The second you take a political stand, you invite consumers to take a stand on their political views and it gets messy. Keep the politics out of it.
Measure, Adapt, and Course-Correct
If your DEI programs aren’t working, don’t make a grand announcement about pulling back. Pivot strategically, measure impact, and adjust without painting a target on your back. We all see how well that’s working out. Adjust quietly and make sure it’s aligned with your business goals.
DEI shouldn’t be a warzone. "Black is NOT a Credential" lays out the roadmap for real, measurable success—one that doesn’t tank stock prices or alienate stakeholders. CEOs need strategy right now, and this is fundamental to your next steps.
Target is a case study of what happens when DEI is handled recklessly. As a CEO you must protect your revenue, reputation, and retention. Ignoring these lessons will result in more than headlines; they’ll risk lawsuits, stock crashes, and customer boycotts.
Learn from Target’s mistakes. Or be prepared to pay the price.
Get the playbook. Order your copy of Black is NOT a Credential
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