On Wednesday’s CBS This Morning, while co-host Gayle King noted that “a petition against the retail giant Target is gaining a lot of momentum” over the company’s transgender bathroom policy, financial contributor Mellody Hobson dismissed the protest: “You know, it's very hard for these kind of boycotts to work. We haven't seen real success since the civil rights era in the 1960s.”
Fellow co-host Norah O’Donnell wondered: “What are the risks and rewards for companies when they take a stance on a social issue?” Hobson only saw risk for businesses taking “exclusive” stands “on the wrong side of history”: “Well, certainly history does show being inclusive is more successful than being exclusive. The big risk is you take a stand, and you're on the wrong side of history. That you get it wrong, and that damages your brand.”
She then touted the benefits for “inclusive” companies like Target: “The reward is that you have an issue that resonates with your customers and builds brand loyalty. Not to mention 350,000 people work there. And so, to the extent this issue resonates with their employees, that can also help the brand.”
To her credit, Hobson did mention how an attempted left-wing boycott of Chick-fil-A backfired and actually helped the fast food chain: “There's also this idea that even bad press is good press. Chick-fil-A was the poster child for that when their CEO came out against gay marriage. And yet, sales went up, awareness went up, visits went up.”
Wednesday’s segment was the first full report on CBS This Morning about the Target boycott. On Tuesday, the broadcast offered a mere 22-second news brief on the topic. NBC’s Today provided a full report on the controversy on Monday, while ABC’s Good Morning America has ignored the news.
In sharp contrast to Wednesday’s assertion that boycotts don’t matter, in recent weeks, CBS has led the charge in promoting “major corporate backlash” against states like North Carolina and Mississippi over recent religious freedom laws:
NBC & CBS Keep Up Attack on Religious Freedom Laws
CBS Applauds Businesses Trying to Intimidate Mississippi Over Religious Freedom Law
Nets Paint Amendment to North Carolina Law as Attempt to ‘Diffuse Widespread Outrage’
Here is a transcript of the April 27 segment:
7:36 AM ET
GAYLE KING: This morning, a petition against the retail giant Target is gaining a lot of momentum. Nearly 850,000 people have already signed a boycott pledged by the American Family Association over Target's bathroom policy. Now last week, Target publicly stated that it allows, quote, "guests to use the restroom or fitting room facility that corresponds with their gender identity." CBS news financial contributor, that’s Mellody Hobson, is joining us from Chicago. Mellody, good morning to you.
MELLODY HOBSON: Good morning.
[ON-SCREEN HEADLINE: Targeted With Boycotts; Hobson on Companies Taking Stand on Social Issues]
KING: So, do you think this petition will hurt the sales at all?
HOBSON: You know, it's very hard for these kind of boycotts to work. We haven't seen real success since the civil rights era in the 1960s. Part of the reason is, for every person that opposes, there's someone who agrees, and they tend to net each other out. There's also this idea that even bad press is good press. Chick-fil-A was the poster child for that when their CEO came out against gay marriage. And yet, sales went up, awareness went up, visits went up. So it's really hard to make these things stick.
NORAH O’DONNELL: Mellody, we reached out to Target for a statement and they say, quote, "We continue to believe that this is the right thing for Target." What are the risks and rewards for companies when they take a stance on a social issue?
HOBSON: Well, certainly history does show being inclusive is more successful than being exclusive. The big risk is you take a stand, and you're on the wrong side of history. That you get it wrong, and that damages your brand. The reward is that you have an issue that resonates with your customers and builds brand loyalty. Not to mention 350,000 people work there. And so, to the extent this issue resonates with their employees, that can also help the brand.
(...)
