Name: Delta CEO: 'I Knew There Would be Backlash' When We Cut Ties with NRA
Uploaded: 2018-08-23
Duration: 6 min 32 s
Description: Speaking out against the NRA wasn't easy, but there's no looking back, says Delta Air Lines CEO Ed Bastian.

[MUSIC PLAYING] Ed, Delta got a lot of attention not long ago with the decision that you made to cancel discounts for the National Rifle Association. And it stirred up a lot of discussion, not just about the connection of guns and violence, but about values, doing the right thing, and the connection between business leadership and social issues. Were you thinking about those issues when you made this decision? What was your thinking? Well, I didn't have time to sit back and make a lot of those attachments and think about the knock-on consequences. And certainly knew there would be some backlash to the decision that we took. But you know, part of it is knowing who you are. And when you know who you are as a company, and you know what you stand for with respect to the values that you put out to your customers, as well as to your employees and your communities, when you saw the rhetoric that the NRA had relative to the issue at hand, we could not have our brand attached with that dialogue. And that drove the decision almost on the spot. What surprised you the most about the reaction that you got, whether it was from your employees or of the public? I knew there'd be backlash. I did not anticipate the strength of the backlash coming out of the NRA movement. I've not been around an issue-- a social issue, a business issue in my tenure at Delta that's created more controversy than this one. But on the other side, it created such an outpouring of support, and actually, an appreciation for a company standing by its values, willing to take the cost of that and make a difference in society. You also got pushback from Georgia lawmakers who rescinded a deal that they had with you for a special tax break. And when this decision you made about the NRA, they changed their mind. It was a $40 million tax break. How did you feel about the whole situation on that? Well, I was aware that we'd be putting a tax break at risk. I didn't really anticipate that they would take the steps they did to actually rescind what they had already previously-- just a week prior-- voted overwhelmingly to approve. And it wasn't a Delta tax break. It was actually an investment in the airport to attract more and more business to Atlanta, to reduce the tax burden so we could do even more flying and reinvest those savings in new routes and new opportunities for the city. It was part of making decisions. You don't look back. You move forward. It was $40 million that didn't come by way of Delta. What reaction did you get from your board, from your shareholders? Our shareholders, or a few of them, they had some questions around-- and certainly, those that had NRA leanings. But it's just like with our customers, just like with our employees, we explained why we made the decision. And once we came out and explained the background and the basis for that decision making, the commentary was positive. So you've had some time to think about it. Anything you would have done differently? Not really. Not really. I have thought about it. And I think the most important thing that we had to do was we had to make a decision. And we didn't have time to over-analyze it or take a poll as to what we ought to do. And I'm proud of the decision our company took. You said at the time, our values are not for sale, and that Delta was going to go reviewing other politically-sensitive relationships and decide whether to keep those groups or not. Did you make any changes? We have made some changes. There are some divisive groups that also had received modest discounts for group travel. And we have ended some of those relationships. As you went through that review process to find out what you were going to do with those groups or not, was there a core crucial question that you asked as a result of this whole experience that you went through? Yeah. The question was, does this group reflect the values that we support? Or is it directly counter to what we try to do in society? And there was a handful of groups that clearly have a strong political bias and leaning towards them that are of a special interest nature, that we just didn't need to be part of. You know, we've seen other CEOs who have been addressing some of these social issues. We've seen it with other CEOs at Apple and Starbucks and Microsoft. What is your reaction to this new kind of social CEO activism? First off, I'm not trying to be a politician. I'm not looking to be a social activist. I'm looking to run the best airline on the planet. But as part of that, we have a responsibility to our customers, the 200 million people a year that travel on us, to our 80,000 employees, to our community partners, to do the right thing. And when you know your values and you know what you stand for, and you see something that comes in direct conflict with that, you're forced to speak. We don't have an opportunity to stand back and duck. You just talked about doing the right thing. And we hear this a lot now from business leaders. Do you find that moral leadership now is an important part of your job? I do. I do. I've always felt that way. I think it's more important when you see the lack of leadership in some political circles around the world. And I think we're in a more polarized society and world than ever before. The populous movement is strong. And the populist movement is centered on fear and anxiety, and people not feeling like they have a voice in the process. And we've got to counter that. I think it's incumbent upon us to fill the vacuum of leadership that some of our politicians have vacated. You know, for years, for decades, business leaders were very reluctant to talk about these very issues that you just mentioned. But it seems now that there is this expectation, whether it's from your employees or for from the public, that they want CEOs to step up and take a position on these things. How do you feel about sharing your opinions on some of these issues that have nothing to do with the airline business? Well, it's a bit uncomfortable, because you're right. We've been trained over the years to avoid being in the spotlight, not to have our name attached to social challenge. Because when you speak out on matters of this, you're going to create negativity. There's people that are going to disagree with you no matter what side of an issue that you come across. How do you decide what you're going to take a stand on? I really know the heartbeat of our company, I believe. And when you see something that is so polar opposite to what you believe, you're required to speak. And our employees expect us to speak. We're not looking to go out and make statements. But when we see them, we've got to act on them. 

Delta CEO: 'I Knew There Would be Backlash' When We Cut Ties with NRA

Leadership

Speaking out against the NRA wasn't easy, but there's no looking back, says Delta Air Lines CEO Ed Bastian.