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 But the decision by Doug McMillon to speak out against the
"religious freedom" bill reflects more than a decade of evolving
policy by the retailer on the issue of gay and lesbian rights, and
follows a pattern of taking stands on some social issues when it
makes business sense to do so.
"Every day, in our stores, we see firsthand the benefits diversity
and inclusion have on our associates, customers and communities we
serve," McMillon said in a statement on Tuesday asking for a veto of
the bill. That was seen as a major factor behind the governor's
decision on Wednesday to ask lawmakers in Wal-Mart's home state for
revisions.
Wal-Mart's action comes against the backdrop of other major
companies taking stands on developing political and social issues,
with mixed results.
General Electric CEO Jeff Immelt on Wednesday joined a growing
chorus of executives expressing concerns about a similar bill seen
as possibly discriminatory against gays in Indiana.
Starbucks canceled a program in which baristas were invited to
engage customers on conversations about race, making it a cautionary
tale for companies looking to wade into potentially controversial
issues.
Wal-Mart has been selective in the issues it tackles in the public
domain.
For years it has resisted calls by labor groups to pay a "living
wage" and its move in February to increase pay to at least $9 an
hour was viewed by many analysts as driven by competition for
workers in a tight labor market as much as social concerns.
Advocates of the ‘living wage’ want $15 per hour.
One former Wal-Mart executive, who now consults for the company, saw
parallels between McMillon's show of support for LGBT rights and a
push a decade ago on sustainability under then chief executive Lee
Scott.
Scott told people to find ways to use less energy and cut out waste
but wanted new initiatives to be profitable, the former executive
said. Ultimately, the stand on LGBT rights is about protecting the
business, said the former executive, who declined to be quoted
because of his continuing ties to Wal-Mart.
"We don't want boycotts here (in Arkansas) like in Indiana. But it
was also the right thing to do for the associates culturally."
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A majority of Americans has supported same-sex marriage for several
years, although a substantial minority still oppose it, according to
Gallup polls.
Allowing its home state to be seen as anti-gay could hinder
Wal-Mart’s ability to recruit executives as well as hurt its image
generally, argued Deena Fidas, a director at the Human Rights
Campaign, which rates companies on their policies towards lesbian,
gay, bisexual and transgender staff.
"It comes down to the issue of economics here. No one wants the
stain of discrimination on their headquarters state," she said. "In
many ways their story is one of leading in some cases and in other
cases following industry peers and the trends of the Fortune 500
broadly," Fidas said.
Wal-Mart has not always been seen as progressive on LGBT issues. Jim
Walton, a director and founding family member, has contributed funds
to the Arkansas Family Council, which supported the state's bill,
public records show.
In 2007 a partnership with the National Gay & Lesbian Chamber of
Commerce fizzled amid pressure on the retailer from the religious
right.
But after moves in 2011 to add gender identity to its
non-discrimination policy and the extension of benefits to same-sex
partners in 2013, Wal-Mart scored 90 out of 100 in the HRC's latest
Corporate Equality Index.
(Editing by Peter Henderson and Clarence Fernandez)
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