A group of seven Attorneys General from several states led by Todd Rokita, Attorney General of Indiana, have recently sent a letter to Brian C. Cornell, Chairman and CEO of Target Corporation, expressing their concerns over the company’s recent so-called “Pride” campaign.
They questioned the campaign’s compliance with state laws on child protection, parental rights, and shareholders’ interests.
In the letter, the Attorneys General detailed their duty to uphold “state laws protecting children and safeguarding parental rights”, pointing out that these laws penalize the sale or distribution of “obscene matter.”
The group brought to light that during Target’s “Pride” campaign, the company marketed and sold LGBTQIA+ promotional products, including clothing items and merchandise with various symbols and slogans, which they believe to be potentially harmful to minors.
These officials also voiced concerns about Target’s alleged financial support to organizations like GLSEN, which they claimed could potentially undermine parental rights.
As cited in the letter, “A 2020 GLSEN guide states: Students may not be ready for their parents or guardians to know about their gender identity or expression” before “contacting the parent or guardian of a transgender or nonbinary student, school staff should clarify with the student whether to use their gender affirming name and the pronouns that correspond to their gender identity, or whether to use their legal name when corresponding with a parent/guardian.”
In addition to the potential conflict with child protection and parental rights laws, the Attorneys General expressed worries about the economic impact of Target’s campaign.
According to them, “Target’s directors and officers have a fiduciary duty to our States as shareholders in the company,” and they claimed that the company’s “Pride” campaign negatively affected the stock price and led to a substantial loss in market value.
“Target’s stock prices dropped by 16 percent and the company lost $12 billion in market value,” they wrote.
They argued that Target’s campaign was in violation of the corporation’s duty of care and loyalty, which demands reasonable prudence and the absence of conflict between duty and self-interest.
The letter reads, “It is emphatically beyond the power of a corporate fiduciary to effectuate ‘a change in the end itself, to the reduction of profits … in order to devote them to other purposes’—social, political, or otherwise.”
The Attorneys General concluded their letter by stating, “We trust that we can work together to advance and protect the rights of individuals, the rule of law, and the well-being of families and children.”
The letter was signed by Attorneys General Rokita, Tim Griffin (Arkansas), Raul Labrador (Idaho), Daniel Cameron (Kentucky), Lynn Fitch (Mississippi), Andrew Bailey (Missouri), and Alan Wilson (South Carolina).
Read the full letter below:
