Several companies have learned the hard way that the Trump administration isn’t as “pro-business” as it claimed. The administration’s pronounced crackdown on Diversity, Equity, and Inclusion (DEI) initiatives has resulted in several companies rolling back, if not outright ending their DEI programs, which in turn has inspired consumer boycotts that have directly impacted sales at several companies. In fact, consumer boycotts have proven so successful that companies are now warning investors about the potential risks they pose to their future bottom line.
CNN reports that companies such as Target, Walmart, and Home Depot listed consumer boycotts around DEI initiatives as a potential risk in their annual regulatory filings with investors. In recent years, consumer boycotts have become a common trend across political lines. In 2023, Bud Light faced backlash from the MAGA set for *checks notes* doing a brand deal with a trans woman. Wait, I thought we were supposed to be snowflakes?
“Companies face a Catch-22 situation,” Kristen Jaconi, director of the Peter Arkley Institute for Risk Management at USC, told CNN. “Consumers may be dissatisfied if a company takes a particular position on a social issue or if a company takes no position at all.”
I’d push back against the assertion that it’s a Catch-22, as evidenced by the fact that we’ve seen both Costco and Apple maintain their DEI initiatives with little to no pushback, and we’ve yet to see any legal action taken against these companies by the government. In the case of Costo, its support of DEI initiatives has resulted in increased brand loyalty. The company is predicted to post strong quarterly sales in an earnings report set to be released on May 29.
A company choosing to withdraw its DEI initiatives is an active choice to bend the knee to the current administration and only goes to show that their initial efforts weren’t sincere, but simply political theater. If they truly believed in it, they’d have no problem standing on business (quite literally in this case).
Companies having to acknowledge consumer boycotts as a financial risk in their filings is proof that boycotts work. The first quarter sales for Tesla and Target show us that boycotts work. Tesla has faced consumer boycotts worldwide as a result of CEO Elon Musk’s active role in the Trump administration. The company’s first-quarter revenue fell by 20 percent, and in Europe, sales of Tesla vehicles have dropped 49 percent compared to last year.
Considering that electric cars are predominantly favored by left-leaning individuals and have repeatedly been demonized by President Trump, no less, Musk’s heel turn into being a right-wing troll isn’t just weird, but also reveals a startling lack of business acumen.
Target has been the focus of several consumer boycotts since it announced it’d be sunsetting it’s DEI initiatives and ending a program designed to help Black employees advance their careers. Foot traffic has consistently been down in the company’s stores, and it recently revealed a drop in its first-quarter sales.
No one was surprised Walmart ended their DEI initiatives, given their clientele largely consists of brokies who think “Buck Fiden” hats are the epitome of style and humor. Target’s move was a shock considering how much they courted Black dollars in years past, only to turn around and play in our faces.
Listen. I’m a staunch leftist who thinks Ronald Reagan was the worst thing to happen to Black people since Jim Crow, but I’m aware I don’t live in a vacuum. America is filled with folks from all different ideological leanings. As a business, if your core clientele largely consists of a particular group, wouldn’t it make more sense to double down on moves that engender that base to your business?
It’s as if these companies still haven’t learned the inherent truth of running a business in the digital age: it’s impossible to be everything to everyone. Consumer boycotts are inevitable in this day and age, so pick a lane and stay true to the base that’s loyal to you. Otherwise, you’ll be out here looking like Target, and who would want that?
SEE ALSO:
Affinity Graduations Canceled Amid Trump’s DEI Crackdown
California Teen Spurs Outrage With Racist Promposal
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They Scared: Target, Walmart Warn Their Investors About Consumer Boycotts
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