The Booming Business of Boycotting Businesses

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.” 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:), for one, faced boycotts 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:) Oreo’s gay pride Facebook post, Google’s (NASDAQ:) , General Mills’ (NYSE:)

to a marriage amendment, Target’s (NYSE:) to an anti-gay candidate and .

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 for Spirit Airlines (NASDAQ:) 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 .
  • More recently, that Hyatt Hotels (NYSE:) 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:) wasn’t just in the spotlight for and , but for something else: . 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 .
  • Monsanto (NYSE:) has been in the crosshairs (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:), which in its products — even in its organic lines.
  • Adidas (PINK:) 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 . The controversy didn’t end, though — Adidas is now after sponsoring the Jerusalem Marathon.
  • If we’re going to mention Adidas, we can’t forget rival Nike (NYSE:), which faced global criticism and activism for over 20 years, thanks to its sweat-shop antics. The company — and the entire sportswear industry — .
  • Clothing store Abercrombie & Fitch (NYSE:) has faced numerous boycotts over the years for its sexually suggestive clothing and ads, and for inappropriate graphic tees. Some such as, “Wong Brothers Laundry Service: Two Wongs can make it white,” while others with phrases like, “Who needs brains when you have these?” Maybe ANF’s recent crash was just a little karma.
  • Chocolate maker Hershey (NYSE:), a pick for InvestorPlace‘s Top Stocks of 2012, faced boycott calls earlier this year from AIDS activists. Why? A boarding school with ties to the company 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.


Article printed from InvestorPlace Media, /2012/07/the-booming-business-of-boycotting-businesses/.

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