Case Name :      Rethinking Political Activity at Target

Authors :           Brian K. Richter, Anisha George

Source :             Ivey Publishing

Case ID :            W12350

Discipline :        General Management

Case Length :    14 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

The focus of the case is on understanding firms’ campaign contributions and lobbying strategies – and their limits. The case centers on controversy facing Target Corporation in 2010. In the wake of the Citizens United decision, Target was one of the first companies to take advantage of their newly acquired freedom to use corporate treasury money (rather than money in a corporate-linked PAC) to make a contribution to an independent expenditure committee (aka “Super PAC”). The company decided to make a donation to Minnesota Forward, a political action committee that had the primary goal of supporting job creation within the state. Pro-gay rights activists discovered that Minnesota Forward primarily backed Republican gubernatorial candidate Tom Emmer, who had previously supported traditional marriage. After this, Target, despite its liberal and socially responsible positioning, was subject to harsh criticism and activist protests as its donation was viewed as a contradiction to its social policies. The events put CEO Gregg Steinhafel in a position to revisit the company’s policies towards political activities. Should there be constraints on what the firm would do on the political front? If so, what should those be?