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Aug 17 2010 10:36am EDT

Do Not Donate Just Because You Can

Gee, thanks Supreme Court.

No doubt, somewhere inside Target Corp., someone must have uttered those words sarcastically over the past few weeks. That’s because a Supreme Court ruling has opened the door for corporations to make donations to political campaigns and causes like they haven’t in years—and Target decided to make one.

By now, it’s well-known that discount retailer gave $150,000 to a business group backing Republican Minnesota gubernatorial candidate Tom Emmer, who opposes gay marriage. That donation has blown up in Target’s face.

The retailer gave the money because they like Emmer’s positions on business issues, not social issues, officials at the company have said. But that hasn’t stopped a major backlash that’s likely to intensify with the latest news that Target won’t give an equal amount to pro-gay rights candidates.

In fact, that intensification was evident Monday, with reaction by the Human Rights Campaign, a gay rights organization, to Target’s decision.

“All fair-minded Americans will now rightly question Target’s commitment to equality. If their initial contribution was a slap in the face, their refusal to make it right is a punch in the gut and that’s not something that we will soon forget,” said HRC President Joe Solmonese.

Add that to boycott threats that have been coming at the retailer since the donation became known to the public.

The irony here is that Target has had a history of supporting its gay employees and reaching out to gay customers. And the company said in a statement that it essentially didn’t want to get further into the quagmire by making other donations.

“We believe that it is impossible to avoid turning any further actions into a political issue and will use the benefit of time to make thoughtful, careful decisions on how best to move forward,” the company said in a statement, Politico reported.

Following the donation and accompanying uproar, CEO Gregg Steinhafel wrote a letter to employees explaining the donation, and apologized for hurt feelings over it.

“The intent of our political contribution to MN Forward was to support economic growth and job creation. While I firmly believe that a business climate conducive to growth is critical to our future, I realize our decision affected many of you in a way I did not anticipate, and for that I am genuinely sorry,” Steinhafel wrote.

In his letter, he reaffirmed his company’s commitment to equality for workers, promised Target would get together with other corporations to talk about diversity, and said the company would make a “strategic review” of its political donations.

But the lesson here isn’t just for Target, but for other companies as well, and it’s this: Just because the Supreme Court has opened the way for contributions doesn’t mean you should rush in to make them.

That’s because politics is a minefield, and if you make one important group happy with your backing, you’re almost sure to infuriate another important group.


Kent Bernhard Jr. is News Editor of Portfolio.com

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