By Suzanne Kapner And Rachel Feintzeig
American corporations typically shun social controversies. But
on one gripping the nation this week--state laws ostensibly aimed
at supporting religious freedom but seen by many as
antigay--several have stepped forward to make their opposition
clear.
Wal-Mart Stores Inc. Chief Executive Doug McMillon unambiguously
called on Arkansas's governor to veto that state's bill on the
subject. Other companies also have opposed the Arkansas legislation
as well as an Indiana law, including Gap Inc., Levi Strauss &
Co., Nascar Media Group and Nike Inc., as well as a host of
technology companies including Apple Inc.
Wal-Mart, based in Bentonville and Arkansas's largest private
employer, was one of the most explicit.
On Wednesday, Arkansas Gov. Asa Hutchinson asked lawmakers to
recall the bill and make clear it isn't intended to
discriminate.
Wal-Mart, where more than 60% of Americans shop each week, would
seem to be an odd candidate to take such a firm position against an
arguably conservative policy. The retail giant often finds itself
in liberals' cross hairs over issues like wages, and it has thread
the needle on other issues like gun control, deciding for instance
to sell assault-styled semiautomatic rifles in some stores but not
others.
Coming out strongly on social issues also violates the long
inherited code of retailing, which is that the customer is always
right. Retailers have long followed a mantra of focusing on selling
goods and staying out of political issues.
The difference between the debate over the religious-liberty
laws and political issues like guns is that many in corporate
America see the religious-freedom laws as a civil-rights issue that
doesn't have two sides, many executives say. Critics of the laws
fear they could be used by merchants or contractors to justify not
providing services to gay weddings, for example.
"Any form of discrimination is wrong," said Jay Stein, chief
executive of Stein Mart, a discount retailer based in Jacksonville,
Fla.
"Retailers are so worried about backlash," said industry veteran
Allen Questrom, who ran several retailers, including J.C. Penney
Co., Federated Department Stores and Neiman Marcus Group. "You can
see how the population has moved more to accept gay marriage."
Wal-Mart's broad customer base didn't universally share that
view. Some customers threatened on Wal-Mart's Facebook page to
boycott the retailer-- although many also praised the move there
and on Twitter.
American companies have been ahead of the law when it comes to
gay rights. Many extended benefits like medical care to same-sex
partners long ago, for instance.
Target Corp. faced demonstrations and calls for a boycott in
2010 after donating to a group that funded ads for a gubernatorial
candidate who was seen as antigay. Then-CEO Gregg Steinhafel wrote
a letter of apology to employees and the retailer has since run an
advertising campaign for its wedding registry that featured
same-sex couples.
More broadly, companies are under increasing pressure from
customers to have values and espouse them. It has become an issue
not just with branding, but also with sales and hiring. In the case
of these laws, many companies see the stir as a chance to tout
their commitment to workplace diversity, said Anthony Johndrow, a
strategy executive at Reputation.com, a maker of business and
personal software.
Normally, companies talk about diversity when they are playing
defense, following litigation, for example. The Indiana law gives
them an opening to take an affirmative stance.
"I think it's pretty smart," Mr. Johndrow said.
The technology industry in particular has wrestled with
diversity over the past year, following the disclosures by big
companies including Google Inc., Apple and Intel Corp. that their
workforces are dominated by men, and often white men.
"They seem to speak more openly about things and they're very
attuned to what their employees think," said Sydney Finkelstein, a
professor of strategy and leadership at the Tuck School of Business
at Dartmouth. "You've got to be seen to be standing up to something
that presumably a substantial percentage of your workforce would
find offensive."
Elana Zak contributed to this article.
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