Politics and Business don’t mix well.
When it comes to politics, everyone has an opinion. This last election cycle has exacerbated the issue to such an extent in the United States, which many commentators have said that not since the US Civil War has there been such a division amongst citizens, including disastrous divides among families and friends.
One issue that seems very tangible is that of the way news is created and consumed. With the advent of social media, everyone is a blogger and everyone can gain friends and enemies at the touch of a like button or the late night ill-thought-out arguments on threads throughout the nation. Bubbles of ideological thought, isolated and immune to the counter arguments have essentially placed people into ‘schools of thought’ although for many that is a misnomer as schools should increase critical thinking and not simply echo opinions already held. In these safe bubbles people share memes and make allies among like and close-minded trolls that have less interest in facts than familiar narrative and acknowledgment.
The Constitution provides protections for Free Speech, deeming it of such consequence and power that it was the First Amendment, although ironically many use the power of the First Amendment in such an aggressive manner as to deny the same right to others of an opposing viewpoint.
Whilst private individuals enjoy the right, the consequences for such vocal and social battling are reasonably trivial. At the lightest stage one may be cited with a Block or an Angry Emoji or even a Turd, but as they say “sticks and stones …” Providing one does not venture into defamation or physical threats of violence, it stays reminiscent of the 5th Grade playground. Until it comes to business, where in this arena your political opinion may have drastic consequences on your employment and earnings.
Let us look at some examples of when Politics was bad for business:
Target Transgender Bathroom Policy
The Obama Administration’s fixation on transgender rights was a constant talking point that created much division and comment. Considering transgender individuals make up 0.3% of the US population (Source: LBGT Wikipedia Demographics) many, although considerate of a vulnerable group, had their opinions overrun by Target’s unilateral policy of allowing men to use women’s dressing rooms. While the spirit of the idea may have been sound, the ensuing abuse by perverts very quickly sparked outrage and a boycott. Target’s double down severely hurt the brand and the bottom line to which they have never recovered.
https://www.businessinsider.com/target-boycott-costs-20-mill…
The American people traditionally root for the underdog but when the opinion of the majority is overruled by a vocal and militant minority it is a simple process that they undertake. They take their money elsewhere and advise their friends and family to do likewise. One has to wonder just how many transgender customers ever advocated for such action, or indeed ever used it.
Losing millions in revenue and stock, Target provides this example of attempting to court leftist public opinion, championed by the White House to score PR points. It made headlines all right and not all PR is good PR. It backfired in spectacular fashion.
Dicks sporting goods
The recent parkland shooting was, as we now know, an avoidable tragedy with many agencies simply ignoring warnings. It allowed the anti gun lobby an avenue to once again strive in its long-term goal of disarming the US populace under the creeping discussion of ‘sensible gun control’ even though none of the resultant knee jerk actions could have prevented this, nor will prevent such tragedies in the future.
Enter Dick’s Sporting Goods with a quite remarkably suicidal idea based upon legally untried and potentially constitutionally incompatible policies, in refusing the sale of firearms to US residents legally allowed to purchase such items and the refusal to sell semi-automatic rifles. Of course it is the right of any business to refuse service to a customer (unless you are a Christian Baker). It is also the prerogative for any business to decide what inventory it keeps and what products it wishes to sell.
So the policy is put in place and lauded by the left as a triumph. One wonders what the shareholders had to say as the shares tumbled after the decision. So let us look at the subject. Can someone still buy an AR 15? Absolutely they can, so the customers wishing to buy the most popular rifle ever sold, with over 5 million currently in private hands, (that, to put it in context, is more rifles than the Chinese, Russian and US armies have, put together), do so. Just not at Dicks. They simply go down the road to Big 5 and give them the money.
https://www.usatoday.com/…/dicks-sporting-goods-…/419388002/
So who are the people that buy guns at Dicks? New York hipsters? Californian tech coders? Vegetarian Booksellers? Of course not, although they and the people lauding the decision have probably never stepped inside a Dicks and probably don’t hunt, fish or go camping, past the local Starbucks. The people that were affected are Middle America and mostly moderates or Republicans who now take their money elsewhere and don’t spend in Dicks at all, as the rest of the merchandise can be sourced elsewhere.
Once more a stupid decision, no doubt taken to exploit a wave of public revulsion, for some quick and easy point scoring resulted not in a upswing of democratic emotional support purchases, but by a boycott of their once loyal customer base.
Delta and the NRA
No one really thought this one through at all at Delta. People are not stupid and the rhetoric of claiming the NRA has ‘blood on its hands’ was largely seen for what it is. The NRA is the oldest civil rights organization in the US and neither sells or recommends any firearm. It merely exists to lobby for the continuance of the Second Amendment and the gun laws on the statute book. Blaming the NRA for school shootings is like blaming AAA for DUI and car accidents.
Seeing the news and placards demonizing the NRA many organizations with links to them simply said nothing, but someone in Delta thought it would be good to capitalize on the headlines and boldly make the announcement that they would no longer give concessions to NRA members, and would cut ties. The left immediately claimed a victory for public opinion and action.
The backlash from Government was immediate with Georgia simply stopping Delta’s very favorable gas tax subsidy, worth over $50M.
https://www.nytimes.com/…/01/business/delta-nra-georgia.html
It would seem that those in control of the decision failed to speak with the billing department, for had they done so they would have discovered that they only sold 13 tickets to NRA members under the preferred business program. Now of course they won’t do even that, as the 5 million NRA members and their families will now not buy ANY tickets with them. It must be remembered that those members are normal owners of the business community and people who will simply fly with any one of the other 8 domestic airlines offering the same service.
https://www.washingtonpost.com/…/only-13-nra-members-used…/…
There are 86 million gun owners in the US. They buy things and they vote. When you piss them off you are essentially denying your business to a third of the populace.
Zuckerberg has made every attempt to weaponize the platform against conservative groups and gift data to the Obama 2012 campaign. The greediness of the data mining for other campaigns is being laid out in Congress as we speak and could have serious ramifications for the social media giant. Of course there is the argument that in signing waivers on what is essentially a free service plays into the hands of the exploiters who see cash in information, your information. What transpires in the coming weeks may have very important political and legal ramifications. If platforms are not allowed to track, use and sell your data to be turned into SEO campaigns, advertisements and sales funnels then there is no value in providing such a service.
https://investorplace.com/…/facebook-fb-politics-bad-busin…/
Conservatives make up a substantial part of the business community in the US and business owners of course have an impact of the lifestyles and employment of those employed by them. When they feel marginalized for their ideology they don’t advertise on the platform or seek to use it, other than to see what their employees are saying, which can have a serious impact on continued service with the company.
ESPN ABC
Recently a war was fought for your minds on a number of networks. Celebrities and anchors emboldened by the daily onslaught of Trump-bashing seen in MSM and late night ‘comedy’ hosts has seen such rhetoric on both sides of the divide using their allies to boycott and lobby advertisers to deny revenue to any show they don’t like.
The unfortunate fact is that the egos of many of these anchors has been unchecked for so long that they perceive that their opinion is shared by the rest of the country and that the increased vitriol, disrespect and plain nastiness will be tolerated.
https://www.usatoday.com/…/sports-networks-polit…/663061001/
Several lawsuits, half apologies and double downs later we see networks making headlines that they would rather not have.
As a business owner it is well known that no business has a uniquely attractive product or service, desired by all, at an affordable price point, with no competition. Businesses rely on driving new traffic to their businesses and retain a loyal customer base. The country is divided, of course it is, which means whether you hold Republican or Democratic views, half of the country disagrees with you, sadly to say.
The upside is that most of the time those customers don’t know that you disagree with them. As soon as you speak out, take a political stance or make a decision based on the opinions of others you open yourself up to alienation of half of your available customer base, which simply takes their money elsewhere.
It is okay to hold political opinions and we should all be thankful that we are able to live in a society where your opinion won’t get you tied to a flaming tire, get beheaded, or have to spend the rest of your life in a salt mine or reeducation camp.
Political opinions are like genitals, everybody has them, but know one likes yours in their face.
My advice to business owners who don’t want to destroy their business is to keep their opinions to themselves and let those with the biggest egos and voices drive disgruntled customers to your business.
When in doubt STFU! My old mentor used to say. Politics is bad for business.