Major retailers become the newest targets as ‘anti-woke’ activist investors intensify pressure on companies amid the culture war.
In a clear sign of the growing pushback against corporate wokeness, major retailers Target and Dick’s Sporting Goods are set to face criticism at their upcoming shareholder meetings this Wednesday. Activist investors, led by the National Center for Public Policy Research (NCPPR), a staunchly conservative think tank, are stepping up their efforts to prevent these companies from engaging in politically charged decisions that they argue are detrimental to shareholders.
The NCPPR has made it clear that it intends to present proposals aimed at curbing the boards of these companies from making what they see as hyper-political decisions. According to the think tank, these decisions have not only alienated a significant portion of their customer base but have also come at a substantial cost to shareholders.
Target’s Controversial Moves
Target, in particular, has been at the center of a cultural storm. The conservative investors are demanding that the retail giant provide a comprehensive report on its partnerships and support for what they term “divisive social and political organizations and causes.” This demand comes in the wake of significant backlash that Target faced last year over its Pride Month displays.
For years, Target has celebrated Pride Month with rainbow-themed merchandise and LGBTQ+ messaging. However, the situation escalated in the spring of 2023 when the company introduced products like female-style swimsuits designed to “tuck” male genitalia. This move sparked outrage among many consumers, leading to a severe backlash. The situation became so volatile that some stores were instructed to relocate their Pride displays to avoid a “Bud Light situation.”
The NCPPR has been particularly vocal about Target’s partnership with the Human Rights Campaign (HRC), accusing the retailer of aggressively promoting radical gender theory. The think tank claims that such activism has hurt Target’s sales and severely damaged its stock price. The backlash was so intense that it resulted in a $12 billion lawsuit against the company and led to Target being rated ‘high risk’ on 1792 Exchange’s Corporate Bias Ratings.
In response, Target’s board has urged shareholders to vote against the proposal, stating that they do not believe it is necessary.
Dick’s Sporting Goods Under Scrutiny
Meanwhile, Dick’s Sporting Goods is also in the crosshairs of the NCPPR. The conservative think tank is asking the retailer’s shareholders to consider a bylaw amendment that would waive the business judgment rule. This measure, they argue, would ensure greater accountability from the board for actions taken to advance the political or ideological views of management.
The NCPPR points to a past decision by Dick’s as a prime example of the financial harm that can result from prioritizing political views. When then-chairman and CEO Ed Stack decided that Dick’s should stop selling assault-style weapons as a stance against gun violence, he famously said, “I don’t really care what the financial implication is.” The think tank argues that such decisions have hurt the company’s financial performance and that implementing their proposal would refocus Dick’s on shareholder value.
Dick’s board, however, has unanimously recommended voting against the proposal, arguing that it would likely violate Delaware law.
Rising Tide of ‘Anti-Woke’ Activism
This wave of ‘anti-woke’ shareholder activism is not an isolated phenomenon. A report from The Wall Street Journal highlights that this kind of activism has been on the rise in recent years, targeting corporate boards that have embraced progressive social policies. Despite the increasing frequency of such proposals, none have yet passed.
However, the persistent efforts of groups like the NCPPR signal a growing movement among conservative investors to hold companies accountable for what they see as a drift into partisan politics at the expense of business fundamentals and shareholder interests. As the culture wars continue to rage, it remains to be seen how these battles will shape the future of corporate governance in America.
In conclusion, the shareholder meetings at Target and Dick’s Sporting Goods this Wednesday are set to be a flashpoint in the ongoing cultural conflict over corporate wokeness. With conservative activists pushing back against what they see as misguided and financially damaging political stances, these meetings could mark a significant moment in the broader struggle over the role of politics in the corporate world.
