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  • Scoop Market Mysteries 7-17-22 (Roe v Wade)

Scoop Market Mysteries 7-17-22 (Roe v Wade)

🔎 Market Mysteries: Should corporations be speaking out about abortion?

 Market Mysteries of the week

   Should corporations be speaking out about abortion? 

Answer:

On June 24th, the Supreme Court eliminated the constitutional right to obtain an abortion. In the weeks following,

many corporate leaders responded directly to the ruling

, openly formalizing their principles and values. Many more companies have waded into the politically-charged conversation 

to manage the complex impacts the order will have on their business

, customers, and employees. 

What are we hearing from business leaders?

Many of America's most prominent businesses are stepping straight into the polarized debate

on reproductive rights with value statements and philanthropic support.

, from Bumble to

,

, and Etsy, have joined a coalition of businesses with a signed letter

opposing restrictions on abortion access

and issued independent statements. Texas-based

publicly vocalized support to employees and users while donating to Planned Parenthood and the ACLU. 

While

now expect corporate leaders to weigh in on societal issues, not

every company is comfortable openly expressing a political stance

. Facebook-parent,

, warned its employees to follow its "Respectful Communications Policy," which bans discussions about abortion in the workplace.

Many other companies have

addressed new challenges for their employees and customers without issuing a position statement.

Corporate leaders, like the

, recognize the risks of navigating the political environment but

believe they have no choice but to make changes to their healthcare benefits and legal policies

. Let's dig into the apolitical actions. 

Why are companies changing their healthcare?

Attracting and retaining a quality workforce has never been more critical for corporations, so

businesses are doing everything they can to provide appealing healthcare benefits

. In 2020,

, who generally negotiate insurance coverage on their workers' behalf.

Changes to healthcare laws require businesses to adapt healthcare policies.

Despite actively avoiding making a statement on abortion rights, major banks like JPMorgan Chase, Goldman Sachs, and Bank of America quickly

to receive treatment out of state. The banks were clear in emphasizing that they pay for travel for a wide range of covered health care services.

Many of these

companies focused on expanding benefits beyond simply adding abortion and abortion travel.

for parents in the workplace.

during covid to care for children as schools and daycares remained closed.

coverage expansion included additional family-building benefits, such as cryopreservation. Though not shy about stating its stance on social issues (even offering to cover bail for protesters),

has recognized a wide range of benefits supporting women in the workplace. The retailer supports new parents with paid leave and subsidized childcare.

has included benefits in its healthcare plan to cover mental health, fertility, reproductive treatments, and travel for employees who need to travel more than 100 miles for healthcare.

Regardless of the medical procedure or where it is,

companies focus on providing employees with the necessary financial support to retain

and strengthen their workforce.

It costs less to offer the benefits than to replace the worker.

Turnover for one position can cost anywhere from

, making talent retention a primary focus amidst a tight labor market. Companies like

and

will even provide funding for employees and their families to relocate if they have concerns about accessing healthcare that aligns with their beliefs. Some corporations might be taking a stand, but

many more might just be worried about keeping talent at their desks.

Why do companies care about travel and data privacy?

Health insurance isn't the only thing changing after this ruling.

Corporations are looking to manage the new legal risks facing their employees and customers.

Rideshare companies Uber and Lyft

took action to ensure that new legal complications don't affect their operating ability.

Amidst a driver shortage and record-high gas prices, both companies are working hard to hold onto drivers. The rideshare giants announced they would cover all legal fees for drivers sued under the recent Texas and Oklahoma laws banning assistance to riders getting reproductive healthcare. While

actions only identified an interest in maintaining driver continuity, Lyft went further to express its social values. Lyft's CEO

support for women's access to healthcare, and the company

to Planned Parenthood.

Businesses are also

focused on ensuring they can retain their users

, as the legal implications of anti-abortion laws remain unclear. Regarding privacy,

will now automatically delete user location data after visits to abortion clinics and other sensitive areas. Because

location data can be subpoenaed or collected via search warrant

, Google and other

. There is a legal gray area around how and why companies turn over user data to authorities. In 2016,

got into a public dispute with the FBI when Apple would not allow law enforcement to use a security bypass to access a suspect's phone. Google likely doesn't want to get caught in the middle of a similar incident and wants its users to feel safe.

Will every company have to address these issues?

These divisive issues will become more difficult for companies to ignore

, but action won't be easy. As with any sweeping legal changes, the implications of the Supreme Court decision on Roe v Wade are unclear and will take years to see the full impact.

, but this will take months, if not years, as cases filter through the courts. 

Corporations have a choice to make.

They can continue to pretend they bear no responsibility for their externalities, or they can engage with the public in their role in the challenges facing our society.

This is not the politicization of business. It's rationalization.

We live in a world of diminishing resources, a shrinking workforce, exacerbating inequality, and new biological or geopolitical catastrophes every year. We have limited time to act on many of the challenges we face as a society. These are facts. For the institutions that control the majority of our waking hours, moderate our wealth and our healthcare, use the majority of our resources, and generate most of our waste to believe that they can go on pretending that they exist solely as a number on the New York Stock Exchange is dramatically ignorant of the realities of existence. Corporations won't be able to sit in the shadows any longer. Those that do will be left behind. 

💙 The Share Scoops Team

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