Target CEO Brian Cornell has defended his company's policy of allowing transgender people to use the bathroom of their choice.

Target reiterated its policy in response to a North Carolina law approved by state Republican leaders that limits the bathroom choices of transgender people in government buildings, including schools.

The Christian conservative group American Family Association (AFA), which claims that such policies can be abused by sexual predators, said that more than 1 million people have signed a pledge to boycott the retail giant over the issue.

Appearing on CNBC's Squawk Box, Cornell said that the company would stick with its policy.

“We took a stance,” he said. “We're going to continue to embrace our belief in diversity and inclusion, [that's] just how important that is to our company. But we're also going to make sure our focus on safety is unwavering.”

Cornell said that more than 1,400 of the company's 1,800 stores already have family restrooms and he promised to increase that number in the future.