The Booming Business of Boycotting Businesses

by Alyssa Oursler | July 25, 2012 8:00 am

Chick-fil-A is no longer just in support of customers “Eating More Chicken” — it has also expressed support of what it calls “the biblical definition of the family unit[1].” That’s the Southern-hospitality way of saying it’s against gay marriage.

And the response has been uglier than dress-up-like-a-cow-and-get-a-free-chicken-sandwich-day, as boycott calls echo around the country.

Chick-fi-A isn’t the first business to face a backlash related to the hot-button issue. J.C. Penney (NYSE:JCP[2]), for one, faced boycotts[3] for its commercial featuring openly gay comedian Ellen Degeneris and its May catalog showing a lesbian couple and their daughters.

And there have been lots of other boycott-sparkers: Kraft (NYSE:KFT[4]) Oreo’s gay pride Facebook post[5], Google’s (NASDAQ:GOOG[6]) pro-gay stance video[7], General Mills’ (NYSE:GIS[8]) opposition[9] to a marriage amendment, Target’s (NYSE:TGT[10]) $150 million donation[11] to an anti-gay candidate and oh-so many more[12].

But gay marriage is far from the only catalyst. Check out the wide range of issues that have created controversy for companies:

• A couple months ago, Facebook users started a boycott call[13] for Spirit Airlines (NASDAQ:SAVE[14]) when the company refused to refund a ticket sold to a Vietnam veteran who had to cancel his flight after being diagnosed with terminal cancer. While the no-refund policy remained intact, the CEO decided to save his (and his company’s) reputation and personally refunded the money[15].

• More recently, word had gotten out[16] that Hyatt Hotels (NYSE:H[17]) is accused of abusing its workers, and people (obviously) aren’t too happy. Heading the boycott: members of the National Organization of Women, the NFL Players Association and the National Gay and Lesbian Task Force.

• U.K. Supermarket Tesco (PINK:TSCDY[18]) wasn’t just in the spotlight for sponsoring a Gay Pride event[19] and calling Christians evil[20], but for something else: spying on its customers[21]. The company has been accused of using radio frequency identification (RFID) — small chips that are hidden on shelves and even in shopping bags — to keep tabs on customers. And that’s just the tip of the iceberg when it comes to complaints about the company[22].

• Monsanto (NYSE:MON[23]) has been in the crosshairs for its genetically modified organisms[24] (GMOs), especially with the release of exposé film Food Inc. But the boycott call also spread beyond the seed maker to companies like Kellogg (NYSE:K[25]), which uses such genetically engineered ingredients[26] in its products — even in its organic lines.

• Adidas (PINK:ADDYY[27]) has been a popular boycott target, too … first by kangaroo-lovers, then by Arabs. The company’s use of kangaroo skin for soccer cleats caused such an uproar that Adidas finally agreed to stop last year[28]. The controversy didn’t end, though — Adidas is now facing heat from Arab groups[29] after sponsoring the Jerusalem Marathon.

• If we’re going to mention Adidas, we can’t forget rival Nike (NYSE:NKE[30]), which faced global criticism and activism for over 20 years, thanks to its sweat-shop antics. The company — and the entire sportswear industry — has come a long way as a result[31].

• Clothing store Abercrombie & Fitch (NYSE:ANF[32]) has faced numerous boycotts over the years for its sexually suggestive clothing and ads, and for inappropriate graphic tees. Some sported racist caricatures and slogans[33] such as, “Wong Brothers Laundry Service: Two Wongs can make it white,” while others offended females[34] with phrases like, “Who needs brains when you have these?” Maybe ANF’s recent crash[35] was just a little karma.

• Chocolate maker Hershey (NYSE:HSY[36]), a pick for InvestorPlace‘s Top Stocks of 2012[37], faced boycott calls earlier this year from AIDS activists. Why? A boarding school with ties to the company refused to admit a teenager[38] because he was HIV-positive.

And that’s just a quick sample. A complete list of companies boycotted in response to environmental issues, animal testing and other controversial practices would take all day.

Source URL: https://investorplace.com/2012/07/the-booming-business-of-boycotting-businesses/

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