Hi, I’m Jeremy Quittner, a writer for Fortune.com’s Venture channel. I’ll be filling in for Ellen McGirt until Wednesday while Ellen crunches on some magazine assignments.
Here’s a question for you: Will boycotts by businesses continue to be effective in getting state lawmakers to drop legislation aimed at restricting LGBT rights?
I can’t help wondering about this as eight more states plan to introduce so-called bathroom bills in 2017: Alabama, Kentucky, Minnesota, Missouri, South Carolina, Texas, Virginia and Washington. The bills seek to replicate legislation enacted by North Carolina in the spring of 2016, known as House Bill 2, or HB2. That law, which targets transgender people, requires people to use public bathrooms associated with their gender at birth. It also pares back civil rights protections for LGBT people in the state.
In addition to prompting a lawsuit from the Department of Justice, where U.S. Attorney General Loretta Lynch in May condemned the law as state-sponsored discrimination, businesses denounced the law and many boycotted the state. PayPal and Deutsche Bank scrapped expansion plans that would have added hundreds of jobs. Salesforce canceled events and threatened to pull state investments. The National Basketball Association moved its All-Stars game from Charlotte, and a host of performers including Bruce Springsteen and Itzhak Perlman cancelled performances there.
Over the past couple of years, threats of business boycotts effectively turned the tide on similar bills in Arizona, Georgia, and Indiana, where in 2015 now Vice President-elect Mike Pence reluctantly vetoed anti-LGBT legislation following loud business protests. All told, North Carolina jeopardized as much as $5 billion in federal funding, business investment, and travel and tourist dollars when it enacted HB2, according to a study by the Williams Institute at UCLA Law.
Yet as proof that the boycott strategy may be faltering, North Carolina legislators have dug in their heels. Despite a last-minute attempt at a compromise that would have rolled back the law, lawmakers voted in December to keep it in place.
In fact, North Carolina Lieutenant Governor Dan Forest released a statement urging conservative defiance in support of HB2, following his and Pat McCrory’s election defeat by Democratic candidate Roy Cooper.
“No economic, political, or ideological pressure can convince me that what is wrong is right,” Forest wrote, urging the law’s supporters to carry on their battle.
Businesses that are inclined to take a political stance may have to tread more carefully with Donald Trump as president. The new Commander-in-Chief has made a habit of singling out companies whose strategies he disagrees with. And while he has yet to wade into the bathroom bill controversy, his penchant for capricious tweeting about everything from Jackie Evancho’s album sales to The Apprentice indicates it’s not a stretch for him.
Still, business groups like the National Gay and Lesbian Chamber of Commerce (NGLCC) say most corporations want to operate in cities and states with strong anti-discrimination policies in place. And whether their boycotts succeed or not, most big businesses aim to send a powerful message to their employees and customers that they don’t discriminate.
“State economies succeed only when there is a fully engaged and protected citizenry, workforce and supply chain, free,” says Justin Nelson, the co-founder and president of NGLCC.
On Point
| Michelle Obama: ‘I hope I’ve made you proud’ |
| First Lady Michelle Obama delivered an emotional farewell speech on Friday, urging young people to “lead by example with hope, never fear.” Her remarks focused on the benefits of hard work and education, and concluded with a tearful thank you. “Being your First Lady has been the greatest honor of my life, and I hope I’ve made you proud,” she said. |
| People |
| Black marching band will play the inauguration after all |
| Talladega College, a historically black school in Alabama, will send student musicians to Washington, D.C., to perform in the inaugural parade for soon-to-be President Donald Trump. Talladega has recently faced petitions and threats from donors who see participation as an insult to the school’s values. School president Billy Hawkins disagrees. “We feel the inauguration of a new president is not a political event but a civil ceremony celebrating the transfer of power,” he says. |
| The New York Times |
| Texas judge overturns ACA protections for transgender people |
| A federal judge in Texas has overturned part of the Affordable Care Act that prevents hospitals and insurance companies from denying care and coverage based on gender identity. Earlier in the year, the same judge blocked a federal ruling that would allow transgender students to use school bathrooms based on their gender identity. |
| BuzzFeed |
The Woke Leader
| So long, Native American mascots? |
| Schools in Michigan that have a Native American mascot could soon be given funding to help cover the costs of rebranding. In recent years, mascots such as “Warriors” and “Braves” have come under fire for perpetuating negative stereotypes about Native Americans; last year, the state of California went so far as to ban schools from using “Redskins.” The new funding, which came about as a result of a change in a tribal agreement, could be used to redo scoreboards, logos, and school lettering. |
| WDET |
| The weighting game |
| Studies have shown that overweight people -- particularly women -- are more likely to be discriminated against at work. Michigan is the only state with laws that prohibit this. Should others follow? |
| Above the Law |
| North Carolina may no longer be a democracy |
| It’s contentious for sure, but a political scientist who studies democracies around the world says North Carolina is no longer a full democracy, and ranks just above Cuba and Indonesia when it comes to running its elections. Recent Republican attempts to strip the newly elected Democratic governor of his appointment powers are among the reasons why. |
| Vox |
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