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Target Corporation, CEO Brian Cornell and current and former board members have been sued for allegedly defrauding stockholders about the risks of its corporate diversity, equity, and inclusion policies, according to Reuters.

Key Facts

• A class action lawsuit has been filed on behalf of the City of Riviera Beach Police Pension Fund, claiming Target defrauded investors by issuing “false and misleading” statements concerning actions supporting the company’s diversity, equity, and inclusion mandates.
• The suit alleges that by failing to warn investors of ESG/DEI risks, its stock price was “artificially inflated” and board members secured re-election, “causing additional damages.”
• The suit covers those who acquired Target common stock between August 26, 2022, and November 19, 2024.
• Law firm Grant & Eisenhofer represents the class action members in the suit filed on January 31 in the U.S. District Court for the Middle District of Florida, Fort Meyers Division.

Background

The lawsuit cites consumer backlash from Target’s May 2023 LGBT-Pride Campaign, which caused some customers to boycott the company and shop at rivals, such as Walmart, whose results stood in “stark contrast” to Target’s. The boycott caused Target’s stock price to drop immediately and continue on a rocky course throughout 2024. The suit alleges Target defrauded investors by hiding the customer backlash and not advising them of the risks to earnings from DEI policies. In effect, the plaintiffs claim Target misused “investor funds to serve political and social goals.”

Related Suit

In August 2023, America First Legal, founded by Stephen Miller and now a Trump administration policy advisor, brought a similar suit on behalf of shareholder Brian Craig in the same U.S. Middle District of Florida court. Also alleging losses due to the company’s Pride Month 2023 campaign, Target filed back seeking to dismiss the suit, claiming it had effectively warned investors about potential customer backlash. It also requested a change of venue to Minnesota. This past December, the presiding judge ruled there was sufficient information to pursue claims against Target and refused to grant the venue change request.

Contra

Following Target’s January 24 announcement that it was evolving its Belonging initiative by “concluding its three-year diversity, equity, and inclusion goals,” civil rights leaders called for a Target boycott beginning on February 1 in conjunction with Black History Month. In a rally outside the company’s Minneapolis headquarters, civil rights attorney and founder of the Racial Justice Network, Nekima Levy Armstrong said Target acted “cowardly” by “bowing to the Trump administration” and retreating from support of racial equity. Organizers called on supporters to patronize Costco instead, since it has reaffirmed its support of DEI.

Tangent

After the National Center for Public Policy Research submitted a proxy proposal to assess the company’s “litigation, reputational, and financial risks” surrounding DEI, Costco shareholders voted almost unanimously in support of Costco’s current DEI initiatives at the company’s January shareholder meeting. Executive director of the NCPPR’s Free Enterprise Project, Stefan Padfield, shared in a statement that his organization warned Target of its DEI risks in 2024 and followed by warning Costco of the risks in the proxy proposal. “Now Target is getting sued and Costco is getting letters from state attorneys general,” Padfield is referring to a January 30 letter to Costco CEO Ron Vacharis from 19 AGs requesting Costco notify them within 30 days whether the company has repealed its DEI policies or explain why it has failed to do so.

Further Reading

• Grant & Eisenhofer Files Class Action Lawsuit Against Target Corporation On Behalf Of Pension Fund (Businesswire, 1/31/2025)
• After Target backs Away From Diversity Programs, Civil Rights Activists Call For A Boycott (PBS, 1/31/2025)
• Target Is Sued For Defrauding Shareholders About DEI (Reuters, 2/3/2025)

Conclusion

The lawsuit against Target Corporation and its CEO Brian Cornell and current and former board members is a significant development in the ongoing debate surrounding corporate diversity, equity, and inclusion policies. The suit alleges that Target defrauded investors by issuing false and misleading statements about its DEI initiatives and failing to warn investors of the risks to earnings from these policies. The outcome of this lawsuit will be closely watched by investors and corporate boards across the country.

FAQs

• What is the lawsuit about?
  The lawsuit is about whether Target Corporation and its CEO Brian Cornell and current and former board members defrauded investors by issuing false and misleading statements about its diversity, equity, and inclusion policies.
• Who filed the lawsuit?
  The lawsuit was filed on behalf of the City of Riviera Beach Police Pension Fund by law firm Grant & Eisenhofer.
• What are the allegations in the lawsuit?
  The lawsuit alleges that Target defrauded investors by issuing false and misleading statements about its DEI initiatives and failing to warn investors of the risks to earnings from these policies.
• What is the outcome of the lawsuit?
  The outcome of the lawsuit is pending.

Combatting workplace bias is a crucial step towards creating a more inclusive and equitable work environment. Biases can manifest in various forms, from subtle microaggressions to overt discrimination, and can have a significant impact on employee morale, productivity, and overall job satisfaction.

The Importance of Trust in the Workplace

Trust is the foundation of any successful organization. When employees feel valued, respected, and included, they are more likely to be engaged, motivated, and committed to their work. Conversely, a lack of trust can lead to low morale, high turnover rates, and decreased productivity.

The Consequences of Biases in the Workplace

Biases in the workplace can have severe consequences, including:

• Decreased employee morale and job satisfaction
• Higher turnover rates
• Decreased productivity and performance
• Legal liabilities and reputational damage

Combatting Biases in the Workplace

Combatting biases in the workplace requires a multifaceted approach that involves education, training, and policy changes. Here are some strategies to help you get started:

1. Education and Awareness

Education and awareness are critical components of combating biases in the workplace. This can involve training programs, workshops, and seminars that focus on diversity, equity, and inclusion.

2. Policy Changes

Policy changes can help to create a more inclusive work environment by providing clear guidelines and expectations for behavior. This can include policies on harassment, discrimination, and unconscious bias.

3. Leadership and Accountability

Leadership and accountability are essential components of combating biases in the workplace. Leaders must model the behavior they expect from their employees and hold themselves and others accountable for creating a positive and inclusive work environment.

4. Inclusive Hiring Practices

Inclusive hiring practices can help to reduce biases in the hiring process. This can involve blind hiring, where candidates are evaluated based on their skills and qualifications rather than their race, gender, or other demographic characteristics.

5. Employee Feedback and Engagement

Employee feedback and engagement are critical components of creating a positive and inclusive work environment. This can involve regular surveys, focus groups, and other forms of feedback to ensure that employees feel heard and valued.

Building a More Inclusive Workplace

Building a more inclusive workplace requires a commitment to creating a positive and respectful work environment. Here are some strategies to help you get started:

1. Foster a Culture of Open Communication

Fostering a culture of open communication is critical to creating a positive and inclusive work environment. This can involve regular team-building activities, open-door policies, and other forms of communication that encourage employees to share their thoughts and ideas.

2. Promote Diversity and Inclusion

Promoting diversity and inclusion is essential to creating a positive and inclusive work environment. This can involve training programs, workshops, and other forms of education that focus on diversity, equity, and inclusion.

3. Provide Opportunities for Growth and Development

Providing opportunities for growth and development is critical to creating a positive and inclusive work environment. This can involve training programs, mentorship opportunities, and other forms of support that help employees to develop their skills and advance their careers.

Conclusion

Fostering a culture of trust and combating biases in the workplace requires a multifaceted approach that involves education, training, and policy changes. By implementing these strategies, you can create a positive and inclusive work environment that values and respects all employees. Remember, trust is the foundation of any successful organization, and it’s essential to prioritize it in your workplace.

FAQs

Q: What are some common biases that can occur in the workplace?

A: Common biases that can occur in the workplace include age bias, gender bias, racial bias, and disability bias.

Q: How can I combat biases in the workplace?

A: You can combat biases in the workplace by educating yourself and others, implementing inclusive hiring practices, and promoting diversity and inclusion.

Q: What are some strategies for building a more inclusive workplace?

A: Strategies for building a more inclusive workplace include fostering a culture of open communication, promoting diversity and inclusion, and providing opportunities for growth and development.

Q: How can I ensure that my workplace is inclusive and respectful?

A: You can ensure that your workplace is inclusive and respectful by implementing policies and procedures that promote diversity and inclusion, providing training and education on unconscious bias, and fostering a culture of open communication and respect.

Even at a Young Age, Boys Ask for More in Negotiations

Research Reveals Gender Differences in Negotiation Behaviors

A new set of studies has found that boys begin asking for more than girls in negotiations as early as elementary school. The research, conducted by professors at New York University and Boston College, examined the negotiating behaviors of 462 boys and girls aged 6 and 12.

Boys and Girls Perform Equally Well, but Perceptions Differ

In one of the studies, children completed a task and were then asked how much they deserved for their performance. Girls requested less than boys. To complete the task, the children were asked to respond to smiley and frowny faces on a screen by saying “happy” or “sad” as quickly and accurately as possible.

Task and Perceptions

The children began with a straightforward set of trials, where their responses aligned with the emotions shown on the faces. Next, they moved to a more challenging set of trials, where the rules were reversed—requiring them to say “sad” for smiley faces and “happy” for frowny faces.

Girls Believe They Did Not Do as Well as Boys

After completing the task, the experimenter told the children they had done a great job and deserved a bonus of funny pictures. The children were then asked how many pictures they thought they should receive. Girls asked for fewer pictures than boys, despite performing equally well.

Confidence Gap: A Key Factor

The researchers found that the gender gap in self-perception was a key factor behind the gender differences in the number of pictures requested. Girls believed they didn’t do as well as the boys, which led to their lower demands. In contrast, boys overestimated their competence and negotiated for more resources.

Earlier Research Suggests Similar Patterns

Previous research has found that adult women also underestimate their performance relative to men and that men feel entitled to more pay than women. Additionally, earlier research has shown that boys tend to score higher in narcissism and self-esteem than girls, despite girls outperforming boys academically.

Why Girls Ask for Fewer Pictures

One possible reason girls asked for fewer pictures is that they may have learned that asking for too much could make them seem less likable. However, the researchers found that anticipated backlash didn’t explain the differences between boys’ and girls’ negotiation behavior.

Conclusion

The study suggests that the roots of girls’ lower self-evaluations likely stem from societal norms, stereotypes, and early experiences that subtly reinforce the idea that boys are more capable or deserving than girls. Addressing this issue requires creating environments that encourage girls to recognize their abilities and promoting confidence in their negotiation skills. Closing this confidence gap is critical to achieving gender equity in negotiations and pay.

FAQs

* What was the purpose of the study?
+ To examine the negotiating behaviors of 462 boys and girls aged 6 and 12.
* What were the findings of the study?
+ Boys asked for more pictures than girls, despite performing equally well.
* What was the key factor behind the gender differences in the number of pictures requested?
+ The gender gap in self-perception, with girls believing they didn’t do as well as the boys.
* What are the implications of the study?
+ The study highlights the importance of addressing the confidence gap between boys and girls and promoting gender equity in negotiations and pay.