The impact on the retailer’s bottom line has been undeniable, with Target’s stock price experiencing a sharp decline.
Written by Stacy M. Brown@StacyBrownMedia
Corporate America’s retreat from diversity, equity, and inclusion (DEI) commitments is already having significant repercussions, with consumer boycotts, stock fluctuations, and mounting legal battles reshaping the financial landscape for major firms. Companies that once championed DEI efforts in the wake of George Floyd’s murder have begun to abandon these initiatives under mounting conservative pressure, only to face economic and public relations consequences of their own.
Target is at the center of a lawsuit alleging it misled investors about its Environmental, Social, and Governance (ESG) and DEI policies. The lawsuit argues that Target’s messaging led to widespread boycotts following its 2023 LGBTQ+ Pride campaign, which extended into a 2024 backlash. The impact on the retailer’s bottom line has been undeniable, with Target’s stock price experiencing a sharp decline. On a recent trading day, shares dipped another 28 cents. Further, Blue Chip Partners LLC reduced its holdings in Target by 6.8% in the fourth quarter, selling more than 10,000 shares.
Despite dropping its own DEI initiative, Walmart has fared better than Target, even as Saudi Arabia’s Public Investment Fund recently divested from the retailer. On Feb. 14, Walmart’s stock slipped from $105.30 per share opening to $103.60, a minor dip compared to the larger financial instability seen elsewhere.
Other corporations aban-doning DEI commit-ments are feeling the strain in different ways. Ford, which eliminated its DEI program, is now facing what many argue is the karma of a staggering $2.5 billion in punitive damages from a recent jury verdict in Columbus. McDonald’s has seen its stock continue steadily declining, falling to $308.55 per share, with Blue Chip Partners LLC also selling off its holdings in the fast-food giant. Coca-Cola and PepsiCo, preparing to comply with executive orders to dismantle DEI programs, have also taken hits. Coca-Cola’s stock dropped by more than 63 cents, while PepsiCo saw a more than $1.19 per share decline.
Some companies that have retreated from DEI, such as Meta and JPMorgan Chase, have managed to hold their ground. Meta CEO Mark Zuckerberg has cozied up to MAGA figures, shielding the company from harsher backlash. Meanwhile, JPMorgan Chase CEO Jamie Dimon, who has long advocated for diversity, recently downplayed DEI training programs, insisting the bank’s approach to minority communities remains unchanged. The company’s stock has remained steady at $276.59.
Citigroup and Morgan Stanley have also largely avoided financial fallout, maintaining relatively stable stock prices despite walking back their diversity commitments. However, Citigroup’s decision to remove or alter its public-facing DEI language has drawn criticism. Goldman Sachs took a similar step, scrapping a requirement that companies it takes public must have at least two diverse board members, citing legal developments.
The entertainment and media industries are not immune. Disney has overhauled its DEI initiatives, dropping its “Reimagine Tomorrow” website and adjusting diversity-related content warnings. While Disney’s stock has fluctuated, it recently slightly increased by 79 cents. Meanwhile, PBS has shuttered its DEI office, citing the need to comply with anti-DEI executive orders.
Corporate compliance with Trump-aligned policies is also apparent in the beverage and consulting industries. Bloomberg reported that Coca-Cola and PepsiCo are adjusting their policies to align with federal contract regulations. Deloitte has told U.S. employees working with government clients to remove pronouns from their email signatures, rolling back its DEI goals. Accenture, another major consulting firm, has eliminated diversity targets in hiring and promotion, citing the Trump administration’s stance.
Retailers and financial institutions are also responding. Lowe’s has merged its employee resource groups under one umbrella and cut its participation in external diversity events. Truist Financial Corp. recently trimmed its stake in Lowe’s, selling off over 39,000 shares. Meanwhile, Amazon omitted DEI language from its latest SEC filing, signaling a broader shift in corporate strategies. Boeing has dismantled its DEI department, folding those responsibilities into human resources.
Consumer and activist backlash has been swift. The National Newspaper Publishers Association (NNPA), representing the Black Press of America, has launched a national public education and selective buying campaign in response to corporate America’s retreat from DEI. The NAACP has also issued a spending guide identifying businesses that have abandoned or upheld diversity commitments. Pastor Jamal Bryant of New Birth Missionary Baptist Church in Atlanta has called for a 40-day economic fast against Target, urging 100,000 people to halt spending at the retailer. Bryant noted that Target had pledged $2 billion toward Black-owned businesses but rescinded that commitment in January.
“Black people spend $12 million a day at Target,” Bryant said on the Black Press’ Let It Be Known news program. “Because of how many dollars are spent there and the absence of commitment to our community, we are focusing on Target first.”
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