Are You Turning Business Away?
Knowing When to Keep You Mouth Shut
Company owners large and small need to realize that unless social commentary, religion, or politics is their business, they may want to mind their business. That is, unless they want to lose it.
In 2013 Barilla Group, which produces Barilla pasta, was the latest company to irritate the LGBT community, only to regret it after a furious international backlash. Spouting rhetoric about traditional family values and opposing gay couples in the company’s advertisements is going to cost them.
And while international companies such as Barilla can generally afford the costs, be they financial or social, small business owners aren’t so fortunate. A bakery in Oregon refused a wedding cake for a lesbian wedding and ended up going out of business.
Sometimes the reactions are surprising. Chick-fil-A’s sales went up 14% and the company opened 96 new stores in 2012. It was the same year their contributions to groups opposing LGBT rights were publicized, and the company’s president fueled that fire with comments opposing same-sex marriage.
But for every store they opened in less liberal regions, another one closed in more progressive areas. If Chick-fil-A hadn’t ostracized their liberal clientele, would sales have risen more than 14%? Plus, what was the cost of the kiss and make up strategy? The company responded to the public outcry with a shift in policies, which included ceasing contributions to discriminating organizations and giving away tons of free “sorry” sandwiches.
Businesses need to keep in mind that demographics are not always what they seem, and when you decide to make “a statement” you need to be ready to pay the price. The loss of business -even if you survive in the long run- will have a ripple effect. For example, what happened to all the employees who lost their jobs because of Chick-fil-A’s decision to make a statement that unintentionally casts a shadow on shareholders and employees?
If your business wants to attract a certain clientele -religious groups, a specific age bracket, people with certain political beliefs- then go for it. But do it with the understanding that by attracting some, you run the risk of alienating others.
There are places, frankly, where I could have gone to do business and I didn’t because they had a Trump sign out. Conversely, there may be potential clients who chose not to do business with me because of my outspoken stance on LGBTQ/human rights (radical, I know). For myself, as a solopreneur & small-business owner, I have the privilege of being able to choose who I work with, both in terms of clients and contractors. For me, if I lose a customer here and there, they are not someone I look at as a viable long-term client. If that describes you as well, and you are okay with alienating potential customers with your religious or political beliefs, then you go ahead and do you. But if you have employees who depend on your business remaining profitable so they can make a living, if you have shareholders who took a financial risk on supporting your business, maybe think twice before taking such a stance.
If you are selling cakes, chicken sandwiches, or movie tickets (Cinemark donated to California’s same-sex marriage ban Prop 8 in 2008), then shut up and do your business. Take care of your shareholders, your employees, your customers and your product, and keep your crusades to yourself. Are these examples a little dated? Yes. Are they still just as relevant now as they were ten years ago? Unfortunately, the answer is also yes.
And if you can’t keep your mouth shut, take a page out of Barilla’s playbook. Learn from the consequences of your actions and do better, both as a business owner and a human being.
Barilla – http://www.theguardian.com/world/2013/sep/26/pasta-firm-barilla-boycott-gay
Oregon Bakery Closes Shop – http://www.queerty.com/oregon-bakery-that-refused-to-serve-gay-wedding-couple-closes-shop-20130903/
Chick-fil-A sales up 14% – http://www.chick-fil-a.com/Company/Highlights-Fact-Sheets
http://www.ajc.com/news/business/chick-fil-a-keeps-growing-despite-uproar/nT85n/
Cinemax Prop 8 – http://www.nytimes.com/2008/11/22/movies/22milk.html
