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The National Observer: DEI Pushback Creates Challenges for some Businesses

  • Target scaled back its diversity, equity, and inclusion initiatives earlier this year amid rising political and social pressures.
  • This pullback followed a nationwide spike in attacks on DEI as the US moved toward the 2024 election, with some companies stopping sponsorships and removing diversity information.
  • As a result, Target experienced multiple consumer boycotts, declining foot traffic by 4.8% in Q1 2025, and drops in reputation and customer recommendations.
  • Surveys show 83% of C-suite executives deem DEI essential, while 76% of employees would stay at companies maintaining DEI, and 43% would leave if initiatives were removed.
  • The ongoing DEI backlash suggests companies may face reputational and legal risks if they abandon inclusion efforts, though some predict more cautious LGBTQ+ executive appointments.
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News One broke the news in on Monday, June 16, 2025.
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