United Church Funds (UCF) and a coalition of values- and faith-based investors under the Interfaith Center on Corporate Responsibility (ICCR), representing over $53 billion in assets under management, have sent a letter to Dollar General’s CEO expressing concerns over a significant rollback of the company’s diversity and inclusion efforts and the potential long-term impacts on the company’s brand, growth and shareholder value.
In the letter, the coalition of investors outlined several recent changes that signal a shift in the company’s approach to diversity and inclusion, including the removal of diversity-focused priorities from corporate filings, reduced transparency in sustainability reporting and the absence of a dedicated Chief Diversity Officer.
Matthew Illian, UCF’s Director of Responsible Investing, said, “If Dollar General is still committed to creating a culture of diversity and inclusion, we want to know about it. Right now, all we see is a pullback from even acknowledging that this work is critical to removing barriers and delivering resilient business performance.”
Dollar General is also facing external pressure from the Rev. Dr. Jamal-Harrison Bryant of New Birth Missionary Baptist Church, who led a 40-day boycott of Target Corporation and called for an “electronic protest” of Dollar General. He has argued that Dollar General needs to be held accountable for failing to invest in Black and low-income communities that make up the backbone of its customer base.
Nadira Narine Senior Director of Strategic Initiatives of the Interfaith Center for Corporate Responsibility, said, “Other businesses – including TJ Maxx, Costco and Kroger – and other CEOs have reaffirmed their ongoing support for diversity and inclusion efforts. Scaling back may pose material business, reputational and human capital risks.”
The shareholders are explicitly requesting a meeting with Dollar General’s senior leadership and board of directors to directly address these concerns, seek a firm commitment and discuss actionable next steps. Read the full text of the letter here.
Download the press release here.