Apple, Lowe’s, Google and Facebook represent a select few of the many companies that expressed their opposition to the passage of the controversial House Bill 2, which includes a provision indicating that transgender people must use restrooms that correspond with the gender listed on their birth certificate.
More than 80 business owners teamed up to send an open letter to Gov. Pat McCory to repeal the provisions in the bill, noting that it’s “bad for our employees and bad for business.” Furthermore, the companies believe that HB 2 will make it more challenging for businesses across the state to recruit and retain top workers.
The RTP editorial team discusses the ramifications of HB 2 on retailers in North Carolina, as well as the best option these retailers can take in the wake of the bill’s passage.
Debbie Hauss, Editor-in-Chief: This is a serious conundrum for North Carolina companies. There will be a serious backlash from this law that will absolutely affect all aspects of their businesses, from short-term revenue to employee satisfaction and long-term profitability. From a business standpoint, the best tactics, in my opinion, are: 1) Take a public stand against the law; 2) Clearly communicate that stand with employees and customers, through every means possible; 3) Focus new efforts on e-Commerce revenue.
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Adam Blair, Executive Editor: No one is more surprised than I that big business, for so many years the “black hats” when it came to a wide range of liberal/progressive causes, have turned into some of the strongest allies against discriminatory legislation at the state level. To take just one example, pressure from Disney and the NFL helped strengthen the spine of Georgia’s governor when he vetoed a recent religious liberty bill earlier this year. Yet retailers, for a number of understandable reasons, have often been loath to go public with their political beliefs. To be successful, retailers need to appeal to consumers on all sides of contentious issues, and they have much less flexibility when it comes to relocating than more centrally organized businesses. But in these cases, where the discrimination itself is often played out in retail settings (e.g. bakers refusing to supply cakes for same-sex weddings), there would seem to be a risk to staying apolitical as well. For retailers with strongly held beliefs on these issues (pro or con), I think the time for being carefully neutral has passed.
Alicia Fiorletta, Content Strategist: This is a situation where retailers can’t afford to be brash. They can’t jump to make a comment or just push out any type of content or position. It requires a lot of thought, empathy and careful consideration. After all, this is a case where people’s lives are impacted. I agree with my colleagues in that it’s truly important for retailers and brands to take a stand and show their position. They need to communicate openly with their consumers on why they have the position they do and how they plan to either peacefully protest or show their support of the trans community. All of these areas take time to finalize and share with potential and current customers. Even the smaller retailers that can’t afford to take a strong position can still make an impact by not enforcing the law at all and also supporting local LGBTQ groups, charities and organizations. In a case like this, any ally is a good ally.
David DeZuzio, Managing Editor: Even though I’ve said it’s usually necessary to separate the brand from one’s beliefs in an effort to not ruffle any feathers, there are times when a company should speak up or take a stand. In cases of bigotry and discriminatory practices, the support of those being unfairly treated is not just in the interests of the bottom line, but in humanity itself. When asked about the location of a certain gig and that specific government’s law and practices, The Rolling Stones recently said that they “play to people, not politics”. Essentially, this is what retailers should do; try to reach everyone, regardless of any differences. Yes, Springsteen and several other performers took a stand by boycotting North Carolina, but in the process they actually hurt their ticket-buying fans who had no part in the NC lawmakers’ ridiculous decisions. But I get it; you have to send the message that you think is right and boycotting the state is a great idea that is certainly catching on. For small retailers (and anyone else), the goal is to embrace everyone and treat them as you would treat yourself. Not sure where I’ve heard that one before, but it sounds like something even narrow-minded lawmakers might have read somewhere.
Klaudia Tirico, Associate Editor: In cases like this, it is important for retailers to take a stand against the issue no matter how much money is on the line. Like Debbie said earlier, being vocal about it with employees and customers is crucial. It was great to read about all of the retailers speaking up about their disappointment of the passing of HB 2, and hopefully more will follow in their footsteps. I personally thought Mike Moore’s call for an “intelligent boycott” of North Carolina’s High Point Market was a great example of finding the right balance of protest. He asked attendees to “stay home, buy more.” With that said, e-Commerce initiatives should be a priority.
Glenn Taylor, Associate Editor: Every individual business owner has the right to feel whatever way they want with regards to the laws that are passed. With that said, consumers also have that right, and have a major effect on the company bottom line. Whether a retailer is one of the 80 businesses represented in the open letter to North Carolina officials or a tiny coffee shop in Raleigh, the fact is, they want to be able to appeal to every potential consumer. If that means taking a stand against laws they deem unfair to the average shopper/employee, then so be it. Aside from the law in question, the retailers themselves can take the initiative to support causes either by joining coalitions, hanging up signs on their storefronts or including a message on their e-Commerce sites to reaffirm their beliefs.
