In order to impress the new administration in Washington, soldiers from the Culture War have entered the sliding glass doors of America’s most prominent retailers—a fact that increasingly threatens their ability to make their own business decisions and operate stores profitably.
Three days into his job, Florida’s new Attorney General James Uthmeier announced a class-action lawsuit that alleges Target Corp. did not properly disclose to investors the risks of a 2023 LGBTQ Pride campaign that drew a consumer backlash and allegedly caused a drop in the retailer’s stock price.
“Corporations that push radical leftist ideology at the expense of financial returns jeopardize the retirement security of Florida’s first responders and teachers,” Uthmeier said. Notably, the lawsuit comes after (not before) Target’s leaders decided to phase out its diversity, equity, and inclusion initiatives.
In another case of corporate meddling, the State of Missouri filed a federal lawsuit against Starbucks accusing the coffee company of maintaining unlawful DEI policies that violate Title VII of the Civil Rights Act of 1964 and Section 1981 of the Civil Rights Act of 1866. Missouri alleges Starbucks discriminates based on race and sex in training and advancement opportunities and with respect to its board membership.
Let’s decode the Doublespeak…
Republican operatives are actively working to remove diversity, equity, and inclusion from this nation’s companies, schools, and governing bodies. That’s what autocracy demands—uniformity and obedience. Naturally, running a successful business demands something else entirely. It demands attention to the needs of customers above all else.
Costco is another American corporation facing political pressure from the Trump administration and its sycophants. In January, Costco shareholders rejected a proposal urging the wholesale club operator to evaluate any risks posed by its diversity, equity, and inclusion practices.
According to Costco executives at its annual meeting, more than 98% of shareholders voted against the proposal. Having diverse employees and suppliers has, in the Board of Director’s view, fostered “creativity and innovation in the merchandise and services that we offer” and led to greater customer satisfaction among Costco members.
Following the increased publicity of Costco’s position, 19 attorneys general—led by Brenna Bird, Iowa’s attorney general, and Kris Kobach, Kansas’ attorney general—penned a letter to the retailer’s president and CEO, Ron Vachris, urging him to end the “unlawful discrimination imposed by the company through diversity, equity, and inclusion policies.”
The letter begins, “We, the undersigned Attorneys General of 19 States, urge Costco to end all unlawful discrimination imposed by the company through diversity, equity, and inclusion policies. Although Costco’s motto is “do the right thing,” it appears that the company is doing the wrong thing—clinging to DEI policies that courts and businesses have rejected as illegal.”
Republicans were once known to be friends of corporate America. That’s over. Today’s Republicans are much more interested in dictating instructions to business leaders, and plenty of frightened CEOs are actively bending their knees in compliance. Walmart, McDonald’s Toyota, Ford Motor Co., Meta, Zoom, Lowe’s, Harley-Davidson, Google, Boeing, Molson Coors, and Stanley Black & Decker have all begun rolling back their commitments to DEI.
In related economic news, The Dow fell about 1,200 points over the course of Thursday and Friday because investors are fearful that weak consumer sentiment will lead to a pullback in Americans’ shopping habits. At this time, consumer spending makes up more than two-thirds of the US economy.
