Target Shareholders Get Mad
BY Michelle Garcia
August 19 2010 7:10 PM ET
Target shareholders are demanding that the company reform its donation
policies to avoid a repeat of the controversial $150,000 donation it
made to MN Forward, which supports antigay gubernatorial candidate Tom Emmer.
"Imprudent donations can potentially have a major negative impact on company reputations and business if they don't carefully and fully assess a candidate's positions," said Tim Smith, a senior vice president at Walden Asset Management, according to the Los Angeles Times. His firm was one of three (the others were Calvert Asset Management and Trillium Asset Management) to file a resolution this week asking the retail giant to overhaul its campaign donation policies. Together the three firms manage $57.5 million in Target stock.
Additionally, the New York State pension fund holds 3.8 million Target shares, and New York comptroller Thomas DiNapoli agrees that the company should have been more careful in considering the political implications of such a donation.