UPDATE: Apple, Twitter throw their weight around in Confederate flag debateFont size: A | A | A
4:00 PM ET 6/23/15 | MarketWatch
By David Weidner, MarketWatch
Silicon Valley has its say in South Carolina politics, a dangerous precedent
SAN FRANCISCO (MarketWatch) -- South Carolina Gov. Nikki Haley is finding out fast what happens when the values of local constituencies go up against the interests of one of the nation's most powerful industries: Silicon Valley.
The people who brought you the sharing economy threaten to play keep away.
That's why Haley, on Monday, relented to pressure (
http://www.marketwatch.com/story/sou...lag-2015-06-22) and asked legislators to remove the Confederate flag from the state capitol grounds. The capitulation came not long after Haley said the flag wasn't controversial in the state, nor had it affected her efforts to bring business and jobs to South Carolina.
Less than a year ago, Haley said (
https://www.youtube.com/watch?t=119&v=x5yic_c1FME) she "spent a lot of my days on the phones with CEOs and recruiting jobs to this state. I can honestly say I have not had one conversation with a single CEO about the Confederate flag."
On Monday, Haley said (
http://www.marketwatch.com/story/sou...s-2015-06-22): "We are not going to allow this symbol to divide us any longer. The fact that people are choosing to use it as a sign of hate is something we cannot stand."
As far as flip-flops go, Haley's was the political equivalent of a Cirque du Soleil finale.
It was also evidence that we are living in a new age of corporate activism. Chief executives, led by Silicon Valley technology elites, are speaking out and issuing threats. Change your laws, they argue, or face the consequences: public shaming, withholding of investment.
Marc Benioff, chief executive of San Francisco-based Salesforce.com (CRM), was one of the first to apply the pressure in a Twitter message Saturday.
"I agree @MittRomney: Take down the #ConfederateFlag at the SC Capitol. To many, it is a symbol of racial hatred. Remove to honor victims," he wrote.
(
https://twitter.com/Benioff/status/612347847577616384)
Apple Inc. (AAPL) Chief Executive Tim Cook added to the chorus Sunday: "My thoughts are with the victim's families in SC. Let us honor their lives by eradicating racism & removing the symbols & words that feed it."
(
https://twitter.com/tim_cook/status/612703567082688513)
Others including Jack Dorsey, interim CEO of Twitter Inc. (TWTR), Howard Schultz of Starbucks Corp. (SBUX), and Satya Nadella, chief executive of Microsoft Corp. (MSFT) echoed the growing sentiment and calls for Haley and her state's legislators to take down the flag.
Haley need only to look at the backlash against Indiana and Arkansas legislatures in April when so-called "religious freedom" laws, which some argue violate civil rights of the LGBT communities, were either passed or drafted. The pressure in that controversy was ignited by Silicon Valley, especially Cook, and eventually fueled by non-technology companies, (
http://www.washingtonpost.com/blogs/...l-in-arkansas/) including Wal-Mart Stores Inc. (WMT) and Marriott International (MAR). Even Berkshire Hathaway Inc.'s (BRKA) Warren Buffett went on the record, forcefully (
http://money.cnn.com/2015/03/31/news...law/index.html).
By the time Indiana modified the law, several companies, including Angie's List Inc. (ANGI) were threatening to scrap investment plans there.
Corporate social activism didn't start in 2015, but the ease and low cost of communicating on social media and the Valley's impulse to challenge conventional approaches to business almost require CEOs to enter the debate these days. Taking a stand can be a minefield and open companies up to customer backlash (
http://www.marketwatch.com/story/wil...nts-2015-04-02). But they also bring additional loyalty among customers who share the belief and, let's face it, cheap advertising.
Haley quickly buckled in the face of the new reality. When it comes to civil rights and hate speech, most of us probably welcome corporate activism. Then again, it should also make us feel uneasy to see CEOs influencing public officials on issues that don't have direct impact on the businesses they run.
Many of us probably are pleased the rebel flag and Haley were no match for Silicon Valley's assault. But what happens when the Valley is on the wrong side of your local issue? What happens when the Apple logo and the Starbucks siren are more powerful than the stars and bars?
-David Weidner; 415-439-6400;
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June 23, 2015 16:00 ET (20:00 GMT)
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