Major companies stay mum on thorny abortion issue – for now

May 5, 2022, 12:10 AM | Updated: 12:22 pm
FILE - Demonstrators protest outside of the U.S. Supreme Court as law enforcement officers stand re...

FILE - Demonstrators protest outside of the U.S. Supreme Court as law enforcement officers stand ready, May 3, 2022, in Washington. A leaked draft of a Supreme Court opinion overruling the landmark Roe v. Wade decision has thrust companies into the limelight on what’s arguably the most divisive issue in American politics. (AP Photo/Alex Brandon, File)

(AP Photo/Alex Brandon, File)

NEW YORK (AP) — A leaked draft of a Supreme Court opinion that would abolish a nationwide right to abortion has thrust major companies into what’s arguably the most divisive issue in American politics.

But while some are signaling support for abortion rights, many want to stay out of it — at least for now.

Experts say it’s tough to navigate these waters. Companies are facing increasing pressure from social media and their own employees to speak out. And while some of them have weighed in on issues like LGBTQ rights, voting rights and gun control, the thorny issue of abortion could prove to be more challenging.

“This is the hottest of the hot potatoes,” said Allen Adamson, co-founder of marketing consultancy Metaforce. “While lots of issues are polarizing, this is ground zero for polarization. People are fanatically passionate one way or another.”

Despite the risks, major companies have waded into the abortion issue in the past. In 2019, more than 180 of them — including H&M, Slack and Glossier — signed an open letter that said restrictive abortion laws were against their values and “bad for business.”

A similar letter was signed by more than 60 companies last year in response to a Texas law banning abortions after roughly six weeks of pregnancy, forcing some women to travel out-of-state to access the procedure. Among others, jeans maker Levi Strauss & Co., the online reviews site Yelp, banking giant Citigroup and ride-hailing company Lyft pledged to cover travel costs for employees who have to travel long distances to access an abortion.

When the report of the draft court opinion set off a political firestorm this week, a few companies issued statements supporting abortion rights but stopped short of taking further action themselves.

“Overturning Roe v. Wade will jeopardize the human rights of millions of women who stand to lose the liberty to make decisions over their own bodies,” Yelp said in a statement. “Turning back the clock on the progress women have made over the past 50 years will have a seismic impact on our society and economy.”

Many others have remained quiet. They include Netflix, PayPal, Microsoft, Patagonia, Target, Walmart and Apple, which is reportedly covering travel costs for its Texas workers through its medical insurance. Microsoft and the Chamber of Commerce, the world’s largest business federation, said it had no comment; the rest did not respond to requests for comment. The Business Roundtable, which represents some of the country’s most powerful companies, said it “does not have a position on this issue.”

Meta, which owns Facebook and Instagram, also did not respond to an Associated Press request for comment, though its chief operating officer, Sheryl Sandberg, posted on her personal social media accounts on Tuesday that the document represents a “scary day for women all across the country.”

Adamson believes that many companies have held off weighing in on the Supreme Court’s draft because they want to wait to see the court’s final ruling.

“This gives companies a chance to think this through,” he said, noting that companies need to make a decision based on what the majority of their employees want.

Over the past few years, companies have added their voices to the Black Lives Matter movement and issues like same-sex marriage. After the Jan. 6 insurrection at the U.S. Capitol, dozens pledged to halt donations to lawmakers who objected to Congress’ certification of President Joe Biden’s victory, promises that turned out to be largely empty.

But taking a stance on controversial issues is seemingly becoming more challenging, oftentimes pitting companies against Republican lawmakers who seem increasingly eager to push back.

Delta, which declined to comment on the abortion issue, was the subject of attacks by the Georgia GOP last year for its opposition to the state’s restrictive voting rights bill. In response, Georgia’s Republican-controlled House voted to revoke a jet fuel tax break that benefits the Atlanta-based company, an effort that ultimately fizzled.

Florida Gov. Ron DeSantis signed a bill last month to dissolve the private government Walt Disney World controls on its property in the state as retribution for the company’s opposition to a new law critics have dubbed “Don’t Say Gay.” On Wednesday, U.S. Sen. Marco Rubio introduced a bill that would prohibit companies from claiming tax deductions for their employees’ abortion travel costs or “gender transition” expenses for employees’ children.

State lawmakers are similarly taking aim at companies that offer help to women seeking abortions in states with less restrictive laws around abortions. Should Roe v. Wade get overturned, roughly half of states are likely to quickly ban abortion.

In March, Texas State Representative Briscoe Cain, a Republican, sent a cease-and-desist letter to Citigroup, saying he would propose legislation barring local governments in the state from doing business with any company that provides travel benefits for employees seeking abortions. If enacted, Cain said the bill would prevent the New York-based bank from underwriting municipal bonds in Texas unless the bank rescinds its policy.

In South Dakota, GOP Rep. Scott Odenbach suggested lawmakers might look at legislation to discourage companies from covering the costs of South Dakotans who travel to another state for an abortion, noting that the state’s proximity to Minnesota, where abortion will remain legal even if Roe is undone, raises “cross-border issues.”

Businesses face tough choices if they continue to operate in states that legislatively ban abortion, said John E. Katsos, a research affiliate at Queen’s University Belfast in Northern Ireland, who consults with multinational companies. Katsos predicted insurance companies would raise the premium rates of companies that operate in such states, because it costs more to insure a pregnant woman and children than to cover an abortion procedure.

Some corporations have long paid for their employees’ travel-related expenses for surgeries out of state under their medical benefits, noted Katy Johnson, senior counsel of health policy at The American Benefits Council, a lobbying group in Washington, D.C. She said she has fielded more interest from companies since the abortion ban in Texas to cover travel expenses for abortion procedures.

State abortion bans might make it harder for companies located in such states to recruit college-educated workers at a time of severe labor shortages, some experts said. That alienation might outweigh any special tax privileges that helped to entice companies to locate there.

“You would rather pay higher tax and have great people than struggle to recruit people to your headquarters in Texas,” said Maurice Schweitzer, a professor at University of Pennsylvania’s Wharton School of Business.

“College graduates will have a lot of choices. And I think there’s going to be a stigma and an aversion to moving to states that have these draconian laws.”

____

Associated Press writers Doug Glass in Minneapolis and Barbara Ortutay in San Francisco contributed to this report.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Evelyn Knapp, a supporter of former President Donald, waves to passersby outside of Trump's Mar-a-L...
Associated Press

Trump legal woes force another moment of choosing for GOP

From the moment he rode down the Trump Tower escalator to announce his first presidential campaign, a searing question has hung over the Republican Party: Is this the moment to break from Donald Trump?
23 hours ago
FILE - The Silicon Valley Bank logo is seen at an open branch in Pasadena, Calif., on March 13, 202...
Associated Press

Army of lobbyists helped water down banking regulations

It seemed like a good idea at the time: Red-state Democrats facing grim reelection prospects would join forces with Republicans to slash bank regulations — demonstrating a willingness to work with President Donald Trump while bucking many in their party.
23 hours ago
FILE - This Sept. 2015, photo provided by NOAA Fisheries shows an aerial view of adult female South...
Associated Press

Researchers: Inbreeding a big problem for endangered orcas

People have taken many steps in recent decades to help the Pacific Northwest's endangered killer whales, which have long suffered from starvation, pollution and the legacy of having many of their number captured for display in marine parks.
2 days ago
FILE - Hiring signs are displayed at a grocery store in Arlington Heights, Ill., Jan. 13, 2023. Emp...
Associated Press

Pay transparency is spreading. Here’s what you need to know

U.S. employers are increasingly posting salary ranges for job openings, even in states where it’s not required by law, according to analysts with several major job search websites.
2 days ago
Meadowdale High School 9th grade students Juanangel Avila, right, and Legacy Marshall, left, work t...
David Klepper and Manuel Valdes, Associated Press

Seattle high school teacher advocates for better digital literacy in schools

Shawn Lee, a high school social studies teacher in Seattle, wants to see lessons on internet akin to a kind of 21st century driver's education, an essential for modern life.
2 days ago
South Carolina Senators hear from the parents of people who died from fentanyl overdose on Jan. 19,...
Associated Press

With overdoses up, states look at harsher fentanyl penalties

State lawmakers nationwide are responding to the deadliest overdose crisis in U.S. history by pushing harsher penalties for possessing fentanyl and other powerful lab-made opioids that are connected to about 70,000 deaths a year.
2 days ago

Sponsored Articles

SHIBA volunteer...

Volunteer to help people understand their Medicare options!

If you’re retired or getting ready to retire and looking for new ways to stay active, becoming a SHIBA volunteer could be for you!
safety from crime...

As crime increases, our safety measures must too

It's easy to be accused of fearmongering regarding crime, but Seattle residents might have good reason to be concerned for their safety.
Comcast Ready for Business Fund...
Ilona Lohrey | President and CEO, GSBA

GSBA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.
SHIBA WA...

Medicare open enrollment is here and SHIBA can help!

The SHIBA program – part of the Office of the Insurance Commissioner – is ready to help with your Medicare open enrollment decisions.
Lake Washington Windows...

Choosing Best Windows for Your Home

Lake Washington Windows and Doors is a local window dealer offering the exclusive Leak Armor installation.
Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Major companies stay mum on thorny abortion issue – for now