Companies and Gun Control a Complicated Issue

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Image iva Knowledge@Wharton.

The #NeverAgain campaign launched by survivors of the shooting at a high school in Parkland, Fla., has resulted in some major companies acting on the issue of gun control by cutting ties with the NRA, while others are resisting, according to Knowledge@Wharton.

Whether it’s the right decision for a company is unclear. For example, Delta Airlines lost $50 million in tax incentives from Georgia when it cancelled discounts for NRA members.

Eric Orts, Brian Berkey, and Robert Hughes – Wharton professors of legal studies and business ethics – discussed the implications of such moves for companies with Knowledge@Wharton.

Orts said that responses by firms to mass-shooting events are quite complex. The decision is first and foremost driven by sense of business responsibility. The reaction of most CEOs is to distance themselves because of the reputational hit.

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Another factor is consumer activism and investor concerns. Berkey said this is the first time “members of the public more broadly have played the foundational role in moving businesses to adopt new policies.”

He said that the role of students responding to the Parkland tragedy is also making a big difference.

“Businesses have to decide what products they’re going to sell,” said Hughes.

Listen to the entire discussion at Knowledge@Wharton here.

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