Target Political Giving 'A Debacle' Says Target Institutional Investor

MINNEAPOLIS -- A few Target Corp. and Best Buy Co. institutional shareholders weighed in Thursday on the flap over the companies' political donations in Minnesota, urging the boards of both retailers to increase their oversight of campaign contributions.

Walden Asset Management and Trillium Asset Management Corp., both of Boston, and Bethesda, Md.-based Calvert Asset Management Co. filed shareholder resolutions with both companies. Together, the three firms control less than 1 percent of each company's outstanding shares -- 1.1 million Target shares worth $57.5 million and 344,000 Best Buy shares worth $11.3 million -- but they are moving the debate over the political giving to a new arena.

Target gave $150,000 and Best Buy $100,000 to a business-focused political fund helping a conservative Republican gubernatorial candidate in Minnesota, triggering a national backlash from gay rights groups and liberals. The companies made the donations after a recent U.S. Supreme Court ruling freed them to spend corporate funds on elections. The candidate, state legislator Tom Emmer, opposes gay marriage and other rights for same-sex couples.

"A good corporate political contribution policy should prevent the kind of debacle Target and Best Buy walked into," said Trillium vice president Shelley Alpern. "We expect companies to evaluate candidates based upon the range of their positions – not simply one area – and assess whether they are in alignment with their core values. But these companies' policies are clearly lacking that."

The shareholders said the donations don't mesh with corporate values that include workplace protections for gay employees and risk harming the companies' brands. Walden senior vice president Tim Smith said such giving can have "a major negative impact on company reputations and business."

The Target resolution urges the board to review the effect of future political contributions on the company's public image, sales and profitability and to consider the cost of backing a candidate whose politics conflict with the company's public stances.

Spokeswoman Amy Reilly said Minneapolis-based Target had nothing to add to previous statements on the matter, including an apology from Chief Executive Officer Gregg Steinhafel.

A spokeswoman for Richfield, Minn.-based Best Buy didn't immediately respond to a message.

The three investment companies together submitted the resolution to Target, while Calvert and Trillium filed the Best Buy shareholder proposal. One of Trillium's clients, the Portland, Ore.-based Equity Foundation, divested a small Target holding of 170 shares on Wednesday.

Comments

[Steven Mackey]

12:10 PM on 09/13/2010

You know if I turned away everyone that has said or don't something that I didn't like I would be a very lonely person. With that said no one cares about this boycott. Target will still have plenty of customers. I know it is fun to think that you are the majority, but most people are straight and don't care. They gave money to PRO-business candidate. I doubt they really care about whether or not he supports gay-marriage. Just yesterday I drove by a full target parking lot. I would be willing to bet that this boycott and publicity has had an opposite effect. I bet people that wold have otherwise not shopped at target are now giving it a try. They may lose some gay shoppers, but will gain many more to replace them. You can always go to Walmart.

[Kevin Atlanta]

09:26 AM on 08/23/2010

If I were a shareholder of any of these Corporate Collective Entities I would be outraged at the obscene purchase of politicians and contributions coming out of my dividends.
Why do paper people get a voice in government?
Can Corporate Collective Entities Vote?
The Roberts Corporate Supreme Court ruled that Corporate Collective Entities have more rights to free speech than you or I and the biological people behind the Corporate Collective Entity have more rights to free speech than those of us who are not shareholders.

[hallowellboy]

08:08 AM on 08/23/2010

Target and BestBuy managements are typical of what's wrong with corporate contributions to the "free" electoral process. Their money buys votes and special treatment thereby weakening the voters influence on how we govern. Shameful how these two stores take hard earned money from the very same people they discriminate against. These stores have counterparts in the public marketplace, use them. Boycott BestBuy and Target until they publicly apologize and change their evil ways.

[BluWoman]

11:53 AM on 08/23/2010

Why do you only single out those two?
Take a look at this list and you will have a much better perspective as to why politicians should look like NASCAR vehicles.
http://www.opensecrets.org/orgs/list.php

[Loni Wolf]

10:47 PM on 08/22/2010

My beef with Target is not just the singling out of LGTB people for discrimination. Who knows who Tom Emmers will pick next? My concern as a Target shareholder is that TARGET is a PUBLIC company & has no Business being involved in hot point political & Religious issues.
THEIR charter is to appeal and sell to as MANY members of the general public as possible. They are NOT supposed to purposely turn people off to their brand, which is EXACTLY what they are doing. They are de-valuing the stock, cheapening the image of the corporation, making it LESS appealing to many shoppers & the all important institutional investors. They are Managing in "STUPID" in a shortsighted way that will take many dollars and lots of time to correct. This will be a Harvard Business School Lesson on HOW NOT to Handle a Crisis for years to come. This is the Forrest Gump Graduate School of Management.

[Voltairine]

09:20 PM on 08/22/2010

Boycotts don't work unless the customers are exactly the same as the constituency they've offended.

This is as ridiculous as the idiotic Whole Foods Boycott last summer.

BTW, I support gay marriage as law of the land. If Democrats and progressives did a better job in protecting business interests, Target wouldn't have to get in bed with social conservative types via campaign donations. Ever think of that?

Besides, what good would it do if a sucessful boycott were do drive Target out of business. How many jobs lost, how much inconvenience to local customers.

[Loni Wolf]

03:53 PM on 08/22/2010

As just a small shareholder with what I consider a good amount in my 401 K ,. , I complained from the VERY start that this debacle would have a negative effect on the stock and on the Corporate image. Management's JOB is to appeal to as MANY customers as possible- preferably high income urban customers. the "new Customers" don't seems to fall into the fashion forward , higher income category. Most of Target's stores are NOT in Rural or Exurban areas like their competition. They cater to a fashion conscious, metropolitan customer & have had name designers "design " one time collections -some of which have already appeared on E-Bay as collector's items. You don't see THAT with Walmart. K-Mart, etc,
Companies that depend on appealing to the widest part of the General public should NOT be dumb enough to allow the Board to roll over and play dead to the whims of the CEO's religious convictions at the detriment of A PUBLICLY OWNED COMPANY . I hope Steihefel gets his walking papers for excessive hubris and complete idiocy in how badly he has elected to handle this PR disaster,. It should have lasted 3 DAYS AT MOST!

[Hasam]

02:55 PM on 08/22/2010

Went to Target yesterday and spent $89.56. I didn't really need anything I just want to send a message that boycott's are stupid. From now on all my groceries will be purchased at Super Target.

I also support Gay marriage and I think it should be legal in all 50 states.

[Loni Wolf]

03:56 PM on 08/22/2010

Hope you like spending about 12% more than at Kroger , Meijer, or Vons,. Boycotts have been wroking since 1964 when blacks boycotted the Mongomery Alabama Bus System so they could sit where they wanted in the bus and to rptoest the arrest of a woman Named ROSA PARKS . Is that name familiar?

[Tywon Rogers]

05:50 PM on 08/22/2010

Too bad your spelling isn't wroking...

[hypnotoad72]

06:28 PM on 08/22/2010

Good for you.

[vandegrasse]

02:23 PM on 08/22/2010

Here's some contact info that may be of some help to those opposed to Target's political meddling:

Target CEO Gregg W. Steinhafel’s email and phone number:
Gregg “If you squint I look like Alec Baldwin” Steinhafel
[e-mail]
612-696-6234
fax: [phone]

[Meah]

01:46 PM on 08/22/2010

No more $ from our household, Target.

[eschenk718]

12:05 PM on 08/22/2010

I'm just one family but we will pull our prescriptions from Target. We do spend a lot on these due to my husband's illness. No more. We'll check out the drug stores. It may cost a little more for the other things we buy there but we'll live with it They have a right to give their money where they want and I have a right to tell my friends and family not to shop there. Same for Best Buy. This just starts with one person at a time saying, no more.

[BluWoman]

11:57 AM on 08/23/2010

What about these political donors? Let's maintain some consistency;
http://www.opensecrets.org/orgs/list.php

[Kenz300]

11:34 AM on 08/22/2010

Corporate America is so short sighted and profit driven that it can not
see that you need a strong middle class for America to be strong.

Buy concentrating all the wealth in America with the top 5% of Americans
you are turning America into a third world country. More and more people that
used to have hopes and dreams are falling behind.

Average Americans need to quit drinking the cool aide that the 24 hour
propaganda wing of the Republican party is selling.

Be careful or you just might get trickled on........

[Hasam]

02:56 PM on 08/22/2010

YAWN...

[bostongreen]

06:16 PM on 08/22/2010

Yeah, it must be tiring working on your knees all day. Keep servicing them corporations, boy.

[Bobjfs]

11:22 AM on 08/22/2010

The issue for me is that the organization Target and Best Buy supports, MN Forward, also supports the Christian punk-rock group, You Can't Run. The position of this rock group is it's okay to murder gay people because the Bible says it's okay.

For some reason, this part of the story is being suppressed in the mainstream press. People need to know about this. I think making them aware will quickly grow the boycott.

Here's an article with the YCR band leader, Bradlee Dean, speaking his vile bit of unprotected speech. The only difference between his statement and Matthew Shepard's murder is they haven't killed anybody yet... that we know of.

http://minnesotaindependent.com/58393/gop-linked-punk-rock-ministry-says-executing-gays-is-moral

[hypnotoad72]

06:34 PM on 08/22/2010

Holy bleep.

Target thinks a lot of groups are walking wallets to be pickpocketed, but if anything up to now wasn't obscene before, it sure is now.

Target's choices are mind-boggling at best, utter vulgarity at wor$t.

[Loni Wolf]

10:53 PM on 08/22/2010

I wonder what they think of Muslims and Hindus & other Faiths different from their own. It sounds like they think the Spainish inquistion was a wonderful idea.

[DavidATolucaLake]

11:22 PM on 08/21/2010

House prices AND rents are out of wack in Los Angeles. With no connection to the income of those living in them. Some apartments that were $350 a month in 1990, are now over $1000, and many have had little if any remodelling.

The salaries of many living in these apartments has not risen 3 fold since 1990 to cover the increase in rent.

Glad I was able to buy when I did.

The ones making out are those who own rental properties.

But at some point there will be little money let over, after rent, for many to spend in the everyday economy. (food, clothing, dry cleaning, hair cuts, etc).

The owners of property see their rents doubling and tripling while many other small business feel the pinch of less money in the hands of those paying ever increasing rents and earning stagnant wages.

This trend is not sustainable if you want a strong small business economy.

[GreenAmbition]

10:39 PM on 08/21/2010

President Obama called out SCOTUS' landmark ruling that it gave on 21 Jan 2010 that such things would take place if corporations are given such power to tamper with the voting process. Justice Alito disrespectfully and vehemently shook his head this would never happen.

Here we are barely eight months later with the President's words coming to pass.

Jusitice Alito? Oh Justice Aliitoooo? What say you now Sir?

[clearthinker16]

12:34 AM on 08/22/2010

Alito was probably bought and paid for years ago

[Loni Wolf]

04:10 PM on 08/22/2010

probably before a lot of us were born

[VegasBabe]

09:21 PM on 08/21/2010

Tarjaa is soooooooooo over rated, I don't understand why people continue shopping there. Everything eventually breaks on ya like 30 days after purchase. On top of that, their merchandise is way over priced. I haven't shopped there in years but when I did, I'd often come across a gay couple looking chic, browsing, discussing possible purchases. Sometimes I'd hover around them trying to listen to their conversation. Wicked I know, but some of the coolest people I have known have also been gay AND, as for decorating....well....either ya got or ya don't. They got it. And now a tacky merchandiser has come out and basically insulted a huge customer baseline? See....I don't get that.