Target, Dick’s Sporting Goods face pushback from investors for ‘going woke’

Major retailers Target and Dick’s Sporting Goods will face criticism over their “woke” policies at shareholder meetings on Wednesday, as activist investors increase pressure on companies amid an intensifying culture war in the United States.

The conservative think tank National Center for Public Policy Research (NCPPR) plans to submit a proposal to ask companies to vote on the issue, aiming to prevent boards from making overly political decisions in the future, arguing that boards have taken controversial positions at the expense of shareholders.

At Target, “anti-woke” investors are calling on the company to submit a report on its affiliations and other support for “divisive social and political organizations and movements” after it faced backlash over its Pride Month display last year.

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For years, Target has featured displays with rainbows and LGBTQ+ messaging during Pride Month in June, but in spring 2023, the company infuriated many customers when it added products such as women’s swimwear that can be used to “hide” male genitalia. The backlash was so intense that some stores were told to change the location of their Pride Month displays to avoid backlash, sources told Fox News Digital at the time. “The Bud Light situation.

Protesters demonstrate outside a Target store in Miami, Florida, on June 1, 2023. The protesters were responding to Pride Month sales at Target stores, which have led to Target removing certain merchandise from stores and making other changes to their LGBTQ+ departments. (Getty Images)

NCPPR specifically criticized Target’s affiliation with the Human Rights Campaign (HRC), saying the company “actively promotes radical gender theory in its stores, having a devastating impact on such activism.”

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Activist investors said the backlash hit Target’s sales, “severely damaged” its stock price, led to a $12 billion lawsuit against the company and resulted in Target being rated “high risk” by 1792 Exchange’s Corporate Bias Rating.

Target’s board of directors issued a statement to shareholders saying it believes the proposal is unnecessary and urges them to vote against it.

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Separately, NCPPR has asked Dick’s Sporting Goods shareholders to consider amending its charter to exempt the company from the business judgment rule, arguing that the move would increase the board’s liability for corporate actions taken to advance management’s political or ideological views.

Dick’s Sporting Goods restricted gun sales in its stores in 2018. (Getty Images/Getty Images)

In a statement of support, the think tank wrote, “Dix has no doubt suffered financially in the past for prioritizing political views when then-Chairman and CEO Ed Stack decided the company should ‘take a stand’ against gun violence by refraining from selling assault-style weapons and said he ‘didn’t care what the financial impact was.’ Implementing this proposal would put Dix’s focus on shareholder value.”

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Dix’s board of directors unanimously recommended a vote against the proposal, saying it likely violated Delaware law.

Reports The Wall Street Journal He noted Tuesday that there has been an increase in “anti-woke” shareholder activism against corporate boards in recent years, but none of the proposals have passed.

FOX Business’ Alexander Hall contributed to this report.