Applevism in Texas
Judd Legum’s Popular Information newsletter recently featured an article on Apple’s response to the Texas ban on abortions as early as six weeks after conception, a moment in time when most women are not even aware they are pregnant. Apple’s muted response caught my attention since we had researched in great detail so many of the early CEO activism moments and Apple was always one of the outspoken CEOs.
I went back to our analysis on May 15, 2019 when the governor of Alabama signed into law a measure that would ban most abortions in the state, with limited exceptions. In the weeks after, many companies and organizations issued comments about the abortion bans or signed letters or petitions in protest. By July 3rd, Weber Shandwick captured reactions from 362 organizations, ranging from small and local to large and global. However, only 2% of corporate/CEO responses at that time were from U.S./Global Fortune 500 companies, the lowest rate of large-sized companies out of the many business response analyses we looked at. It made sense because previous Weber Shandwick research found that abortion ranked last on a list of issues Americans think CEOs and business leaders should express an opinion on. Abortion seems to be the one issue that companies shy away from despite its impact on female employees.
Apple has approached the Texas abortion ban quietly despite employee unrest. Apple posted an internal message about the Texas abortion ban. The internal memo informed employees that Apple employees have the right to make their own decisions about their reproductive health, that their benefits are extensive and allow them to travel out of state to get medical care, and if they need help in getting that care for themselves or family members, they will be supported and assisted. As well, Apple said that they “are actively monitoring the legal proceedings challenging the uniquely restrictive abortion law in Texas.” Apple is approaching the abortion ban, the “heartbeat” bill by different means.
As Legum makes clear, there are many reasons why Apple has tremendous leverage in this situation and why Texas has a lot to lose if Apple decides to put that leverage to use:
· Apple makes its Mac Pro in Austin. Its facility has 7,000 employees which is the largest concentration of workers outside of Apple’s California headquarters.
· Apple is building a "new $1 billion, 3-million-square-foot campus" in Austin to eventually hold 15,000 employees. Governor Greg Abbott, who signed the abortion ban into law, was enthusiastic about this business development when it was announced.
· Apple is investing in the Austin community as well. It is partnering with local arborists to increase the diversity of native trees. As part of the 133 acre campus, it will include a 50-acre nature and wildlife preserve that will be open to the public. Solar power will be incorporated on site which includes many new jobs. Apple is also starting a Community Education program in Austin to bring Swift coding into the classrooms and community college.
· Apple might have difficulty recruiting talent to their new campus with this draconian ban and subsequently have to reduce its employee base and manufacture Mac Pros elsewhere. In a recent survey of 1,689 college-educated adults not living in Texas, 66% said that the state's new abortion ban would discourage them from taking a job in Texas. 73% of all Gen-Zers said they would not take a job in a state with a hostile reproductive health environment; 69% of Millennials said the same. The economic costs to Texas are very high.
Apple is not standing still. They are rewriting the activism playbook by not coming out loudly against the abortion bill and taking a more measured approach. CEO Tim Cook wrote the internal memo outlining his thoughts, recently announced that Apple's medical insurance would kick in to help cover the costs incurred by workers who need to travel because of Texas' abortion access restrictions and has made it clear that it is up to helping fund the legal battle against the abortion law.
CEO activism is charting new ground by not just talking but acting and doing. My sense is that this is just the beginning of a long process.