A commentary
By J.F. Kelly, Jr.
Why is it that some who enjoy celebrity status like popular rock stars, actors, athletes, other billionaires and, lately it seems, CEOs of large corporations, sometimes feel that they have some special qualification by virtue of their career success to issue public pronouncements on social issues that divide the country? They, of course, have a perfect right like any other citizen to do so but for CEOs it could be bad for business, especially when the public is more or less evenly split on hot, push-button issues. But when they do, they should expect pushback.
It’s always been common, and properly so, for CEOs and other corporate executives to lobby legislators and to campaign in favor of business-friendly laws and regulations and against those that are bad for business. But, for the most part, they have historically avoided taking public stands on contentious issues for fear of alienating some customers, shareholders and other stakeholders. Engaging in the culture wars as a method of virtue signaling can be particularly risky. Better to stick to the knitting, as we used to say in business school, and focus on what they presumably do best and are paid handsomely to do well which is running the business, complying with applicable laws, and hopefully producing a product that customers want, resulting in profit for the owners of the business which is to say, the shareholders. As evenly divided as Americans are on such issues as abortion, voting procedures, what our children should or should not be taught in school, etc., why should any CEO or business executive risk alienating as many as half of the company’s stakeholders?
When the Georgia state legislature recently revised its election laws, which it had every right to do under the Constitution and which many states also did, the changes were characterized by the liberal media as being more restrictive of minority voting access. They were, in fact, less restrictive than the voting laws in many reliably Democratic states including President Joe Biden’s home state of Delaware, but the narrative nevertheless persisted. Some companies based in Atlanta, including Delta Airlines and Coca-Cola, protested the voting laws. Said Delta’s CEO, “The voting laws do not match Delta’s values.” I doubt that many of Delta’s customers were aware that the company’s values included positions on Georgia’s voting laws. Major League Baseball Commissioner Rob Manfred was so upset by the changes that he moved the 2021 All-star Game out of Atlanta, a move that only punished the local economy including the vendors and workers involved, not to mention the fans who planned on attending the game in Atlanta. Said the Commissioner, “Fair access to voting continues to have our game’s unwavering support.” Who knew “the game” had a position on such matters?
In Arkansas, legislation to block gender transition treatment of children was strongly opposed by some companies intent on virtue signaling. And in Florida, some employees of the Walt Disney Company decided that they didn’t agree with Florida’s Parental Rights in Education Law which bars instruction on gender identity and sexual orientation in grades 1 through 3 and limits such instruction to age-appropriate material beyond third grade. Apparently, employees determine the company’s position on such matters because the CEO caved, publicly opposing the law and promising a fight to repeal it. This didn’t go over at all well with the Florida legislature which responded by drafting a bill which Gov. Ron DeSantis signed that terminated the special tax district that had allowed Disney to virtually self-govern the land on which its theme parks, resorts, hotels and other businesses sit with significant tax consequences for Disney.
Said Gov. DeSantis, “You’re a corporation based in Burbank, California, and you’re going to marshal your economic might to attack the parents of my state? We view that as provocative and we’re going to fight back against that.” So far as I know, neither Mickey, Minnie, Donald, Goofy nor any other influential cast members in the Magic Kingdom has responded. CEOs that engage in the culture wars should not be surprised by pushback which may impact the bottom line.
A recent full-page ad in the Wall Street Journal paid for by something called “Empire State Development” announced that “reproductive rights and equality have always found a home in New York State and your business should, too. From immigrants and LGBTQ+ rights to women’s reproductive rights New York State has been and will always be on the right side of history and welcomes and supports companies who share in these beliefs. If you’re a company that truly values your workers’ health protections and right to access abortion care, you should move to a state that does, too.”
That would be New York. However, those businesses planning to move there may notice a whole lot of traffic fleeing the state. That would be because of one of the highest tax rates in the nation with a crime rate to match. These things just seem to go together in Democrat-run states and cities.
With Americans suffering greatly from inflation, liberal politicians are looking for someone else to blame and the usual targets are those greedy corporations which they accuse of price-gouging. Of course, their own profligate, progressive-pushed spending is the last thing they would blame. But companies are not in business to lose money, or to solve inflation problems caused by politicians who spend too much of other people’s money with little to show for it. Engaging in the culture wars and virtue signaling is the very last thing CEOs should be doing now. Best to stick to the knitting.
May 25, 2022