ST. PAUL, Minn. — Target Corp.’s CEO on Tuesday defended the discount retailer’s political donations to a Minnesota group helping the state’s Republican candidate for governor, telling employees at its Minneapolis headquarters that the company’s support of the homosexual community is “unwavering.”
Chief Executive Gregg Steinhafel said homosexual employees have been raising concerns about the money helping state Rep. Tom Emmer, who opposes samesex marriage. Target gave $150,000 to MN Forward, a group staffed by former insiders from outgoing Republican Gov. Tim Pawlenty’s administration. MN Forward is buying TV ads supporting Emmer.
“We rarely endorse all advocated positions of the organizations or candidates we support, and we do not have a political or social agenda,” Steinhafel said in an e-mail.
He added: “Let me be very clear, Target’s support of the [homosexual, bisexual, and transsexual] community is unwavering, and inclusiveness remains a core value of our company.”
Emmer is a conservative who lauds Arizona’s strict approach to illegal immigration, once advocated chemical castration for sex offenders and wants to lower taxes. His profile contrasts with Target’s image in Minnesota, where the company is known for donating to public school programs, food pantries and the annual Twin Cities Gay Pride Festival.
Target donated to MN Forward under new laws allowing corporations to spend company money on election campaigns. Corporate donations have been flowing since the U.S. Supreme Court threw out parts of a 63-year-old law that prohibited companies and unions from donating to campaigns for or against candidates.
The decision, which came earlier this year, changed rules in about half the states. But the change is so new that experts say they don’t have a good handle on the likely effect nationally.
“This is the leading edge,” said Ed Bender, who heads the National Institute on Money in State Politics in Montana.
In Minnesota, where Target has its headquarters and opened its first store 48 years ago, Democrats are grumbling about the large donation, and some are talking about striking back at the well-known brand.
A few voices have called for a boycott in the state, one of Target’s top three for sales. One Democratic backed group is reaching out to Target employees through Facebook ads urging them to sign a petition opposing the donations.
A Target spokesman said the company supports causes and candidates “based strictly on issues that affect our retail and business objectives.” Spokesman Lena Michaud said Target has a history of campaign donations in state and local races where allowed, but wouldn’t provide details.
She said Target Citizens, the company’s federal political action committee, has spread donations evenly between Democrats and Republicans so far this year. Political action committees contribute money collected from employees and shareholders, not from corporate funds.
Target’s donations to MN Forward - $100,000 in cash and $50,000 in brand consulting - slightly exceeds the total amount the company has given this year to all campaigns and causes at the federal level. By contrast, individuals can give a maximum of only $2,000 to candidates under Minnesota law.
Three Democrats, House Speaker Margaret Anderson Kelliher, former U.S. Sen. Mark Dayton and former state Rep. Matt Entenza, are running in the Aug. 10 primary. Pawlenty chose not to seek a third term and is instead exploring a 2012 presidential bid.
Although corporate donations are now legal, they could be sensitive for companies that serve customers of different political orientation. “You’re never going to please everyone,” said Elliot Schreiber, a professor at Drexel University in Philadelphia and consultant on corporate image management. “Taking sides is only going to exacerbate the situation.”
MN Forward is technically nonpartisan, but Executive Director Brian McClung, Pawlenty’s former spokesman, said Emmer is the only gubernatorial candidate the group supports.
As of Tuesday, Target was the largest single donor to the group, which had raised more than $1 million from industry trade groups and companies, including Pentair Inc., Hubbard Broadcasting Inc., Davisco Foods International Inc. and Polaris Industries Inc. Electronic retailer Best Buy Co. gave $100,000 to the group according to an MN Forward report made public Tuesday.
The Supreme Court ruling left in place state prohibitions against companies giving directly to the candidates. The money can go to independent groups supporting the candidates. But individuals can donate directly to the candidates’ campaigns.
Information for this article was contributed by Brian Bakst and Jim Kuhnhenn of The Associated Press.
Business, Pages 27 on 07/28/2010