As you may have read, Target made a dumb move recently. They made a donation to a political group in Minnesota to support pro-business candidates in statewide races. Makes sense, right? Good move.
Not so fast. That same pro-business group also happens to give money to a gubernatorial candidate who opposes same-sex marriage. Oops. Turns out lots of gay people, and lots of straight people who support same-sex marriage (including yours truly) shop at Target. They weren't too psyched about this news, understandably. And now they're boycotting Target.
So here's the deal, Target. Donating corporate money to political campaigns is really dumb. However, it's not dumb because you risk alienating half of your customer base. It's dumb because that's not what your shareholders want you to do with your money. Target shareholders don't want to invest in a political action committee. They want to invest in a discount retailer. If Target shareholders believe that the election of conservative candidates will increase the value of their Target shares, they can vote with their own wallets, by donating their personal money to support conservative causes.
If Target has an extra $150,000 lying around, it should use that money to improve its business. Invest it in a new marketing campaign. Spruce up an old store. Give your best people a raise or a bonus. And if you can't think of anything else to do with it, just hang on to it. Your investors will reward you for having a strong cash balance, and I'm sure at some point in the next few years you'll think of something productive to do with $150,000 that will directly impact your bottom line and those of your shareholders.
I should note that, although I personally support gay marriage, I am not participating in the boycott. In fact, I just dropped some dough at Target yesterday. And maybe I'll donate some of the money I saved by shopping at Target to a pro-gay marriage candidate.