Target, other retailers with low reciprocity scores now on NAACP's hit list
 
By Lorinda M. Bullock
NNPA News Service
(July 24, 2006) NAACP President and CEO Bruce Gordon (left) issued this warning to Target and three other major retailers that earned F grades on the 2006 NAACP Economic Reciprocity Initiative Report Card Monday: "We're coming after you."  
 
Gordon made this announcement recently to a standing room only crowd during the NAACP's 97th annual convention held at the Washington Convention Center.  
 
But, Gordon didn't just take aim at Target. Other retail giants, including Sears Holdings Corporation that recently merged with K-Mart, Dillard's Inc., and Kohl's department stores also were criticized by name.  
 
Those companies earned failing marks because they did not cooperate with the civil rights group's 10-year-old survey measuring what the report calls "corporate America's financial relationship with the African American community."  
 
"We have companies that haven't responded for two years," Gordon said, referring to Target. "Some folks in our community like Target because you know they have good prices and a nice product line. They don't even care to respond to our survey. Stay out of their stores," Gordon said followed by loud applause.  
 
Target issued a statement saying, "Target did not participate in the 2006 NAACP General Merchandising survey because Target views diversity as being inclusive of all people from all different backgrounds, not just one group. The information requested in the NAACP survey was about African American teams members only. In addition, the NAACP asked for specific information on minority populations and other company initiatives that Target considers to be proprietary. Therefore, while our company has a genuine and extensive commitment to diversity, our grade reflects the fact that we did not participate in this particular survey."  
 
In a speech to delegates earlier in the day, Gordon pledged to move beyond simply issuing reports each year.  
 
"We have companies that get Ds and Fs and no consequences," he said. "Why take the time to do the survey and then do nothing about it? We're going to start a consequence system, and it's real simple. If corporations spend their money on us, we'll spend our money with those corporations. Real simple. And if they don't, we won't."  
 
A total of 50 companies in industries such as automotive, telecommunications, lodging, financial services and retail were graded in the annual report.  
 
Of all categories, no company was given a grade of A. In fact, Gordon said an A has never been given in the 10-year history of the report. BellSouth was the closest, earning a B-plus. The telecommunications company scored high in areas such as charitable giving to African American programs and organizations and their willingness to launch new services in African American markets.  
 
BellSouth improved on last year's B-minus grade. The company's chief diversity officer, Valencia Adams, attended Gordon's press conference. In a statement, she explained, "It was our goal to better our 2005 score and I'm pleased that our efforts made a difference and that the NAACP is also acknowledging our progress."  
 
Excel has an even worse record than Target. It earned an F and has refused to complete the survey for five consecutive years.  
 
In the automotive industry, companies such as DaimlerChrysler and Ford earned the highest grades of B-minus, while Mitsubishi and Volkswagen both scored D-plus. General Motors received a C.  
 
Overall, financial institutions scored the best as a group. SunTrust Banks, Inc. and Wachovia Corporation earned Bs. At the bottom, were U.S. Bancorp and Wells Fargo and Co., both with a C-minus.  
 
Adam's Mark, Marriott, Hyatt, and Cendant earned top grades of B-minus in the hotel industry, and the lowest scoring company was Best Western with the grade of D-plus.  
 
Several upscale stores received downscale grades. Nordstrom earned a C-minus and Saks got a D-plus.  
 
While Gordon described the survey-a brainchild of former NAACP President Kweisi Mfume-as "brilliant," Gordon said he wanted to revise the questions to get better results and also focus more on how much money companies spend with minority suppliers.  
 
Gordon said companies with billion-dollar budgets might spend only one percent of their budget with minority suppliers.  
 
"Those numbers are totally unacceptable," the NAACP president said. Gordon said black consumers, through their wallets, can encourage large companies to hire more black-owned law firms, accounting firms, and advertising agencies to do business with.  
 
With more economic power, Gordon said the NAACP's cornerstone ideals of equality and justice could better be achieved.  
 
"Imagine the difference between spending one percent of $10 billion versus spending five percent of $10 billion or 10 percent of $10 billion," Gordon explained. "We're talking about driving hundreds of millions of dollars in revenue, in cash, in money, into our minority communities."  
 
The NAACP's major goal with the survey now, Gordon said, was to find more effective ways hold poor performing companies more accountable. For poor performing companies, he said the black community must stop using their products and services and for companies that earn positive grades (B and above), the NAACP will reward them with additional customers.  
 
"There's going to be a consequence system. We gather once a year. We tell you the grade... we do a press release and effectively we go away until next year. That's over," he said.  

Click here for PDF of NAACP's business report card


Go to Target Market News homepage

 

Click here to read more

________________________

The African-American
Book Publishing Authority

Now in its seventh year of publication, Black Issues Book Review is the only nationally distributed magazine devoted exclusively to covering the latest news and reviews on black books. BIBR also provides up-to-date news on forthcoming author events, publications, conferences, shows and exhibits.
Want this issue? Get it with your new subscription.
Click Here
________________________


________________________


 12th Annual Edition Available 
Latest 'Buying Power' report shows black consumers spending more on home life

As the American economy continues to move sluggishly, African-American households are curtailing their spending in many categories, including food, clothing and basic household items, while investing more in home repair, home entertainment and consumer electronics. Although they are trimming back, black consumers are still spending more than their white counterparts on most of these products.
Story and statistics continued
_________________________

  SUBSCRIBE TODAY! 


The trade publication for
in-depth coverage of Black
Consumer Marketing
and Media news