The Congressional Black Caucus (CBC) has been seen to intensify a boycott campaign against retail behemoth Target for its decision to terminate its Diversity, Equity, and Inclusion (DEI) initiatives.
This decision also included the cessation of a corporate sponsorship program that has been financially beneficial for the caucus's nonprofit arm.
Target has been a generous benefactor to the Congressional Black Caucus Foundation since 2020, donating a minimum of $1.4 million. The foundation, a think tank, collaborates closely with the 62-member caucus. In response to the tragic death of George Floyd, Target pledged $1 million over five years to the foundation through its Racial Equity Action and Change (REACH) initiative.
The aim was to "advance social justice and racial equity for Black individuals." In December, the retail giant donated an additional $200,000 to the foundation for "meeting expenses" to honor several caucus members, as reported by lobbying records.
However, in January, Target halted funding for all of its DEI programs in response to an executive action on DEI by President Donald Trump. The company announced plans to wind down REACH and reassess "corporate partnerships to ensure they are directly connected to our roadmap for growth." This decision seemingly placed funding for the CBC Foundation in jeopardy.
In response, the Congressional Black Caucus has hinted at endorsing a boycott of Target unless the company reinstates the DEI initiatives that were eliminated or rolled back. According to a statement released by the caucus following a meeting with Target CEO Brian Cornell and other executives, CBC members "warned that efforts to restore consumer and public trust without genuine action and accountability would risk inflicting lasting damage to the companys brand and credibility."
The caucus's statement also suggested that it is in full agreement with the activists leading the boycott. "Like many of the coalition leaders and partner organizations that have chosen to boycott their stores across the country, we found that the explanations offered by the leadership of the Target Corporation fell woefully short of what our communities deserve and of the values of inclusion that Target once touted," the caucus stated after the meeting.
The timing of the CBC's pressure on Target has raised eyebrows, given the caucus's history of scrutiny over its intertwined relationship with the CBC Foundation and its corporate sponsors. Peter Flaherty, the chairman of the National Legal and Policy Center, a conservative watchdog group, commented, "The Congressional Black Caucus threat of a boycott after Target ended financial support has all the earmarks of a shakedown." Flaherty also noted that Target's CEO, Brian Cornell, had previously met with MSNBC host and activist Al Sharpton regarding a potential boycott.
The CBC and the foundation, while technically separate organizations, have worked so closely together that they are often considered two sides of the same coin. The New York Times once described the CBC and the CBC Foundation as "so deeply connected it is sometimes hard to tell where one ends and the other begins."
The foundation has been known to use its close relationship with CBC members in its fundraising efforts. In a fundraising pitch this year, the foundation listed one of the "Benefits of Corporate Sponsorship" as fostering "engagement with CBFC stakeholders, including Congressional Black Caucus (CBC) members and program participants." Former CBC Foundation chief executive Elsie Scott has acknowledged that its corporate donors were seeking influence, telling the New York Times in 2010 that firms "are trying to get the attention of the C.B.C. members."
While activist groups have long used boycott threats to pressure companies into making favorable changes, some organizers have used them as a negotiating tactic to line their own pockets. Sharpton, the MSNBC host, has been repeatedly accused of dangling boycott threats against companies, only to cancel them at the last minute after striking a deal with the boycott target.
Despite the CBC's criticism of Target's DEI rollback as "unconscionable," it has shown a willingness to accept the companys money. Campaign finance records reveal that the Congressional Black Caucus accepted $5,000 on February 21 from TargetCitizens PAC, a super PAC funded by top Target executives.
The Congressional Black Caucus, Congressional Black Caucus Foundation, and Target did not respond to requests for comment. This situation serves as a reminder of the complex interplay between corporations, political entities, and social justice initiatives, and the potential for conflicts of interest that can arise.
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