People are pushing companies to cut ties with the powerful
gun lobby. Advocates are targeting not weapons makers, but banks, rental car
agencies, airlines, insurers and other companies with ties to the NRA. In many cases, the pressure is working. Delta is
ending discounted rates for members of the organization. United Airlines will
no longer offer discounts on flights to the NRA annual meeting. Enterprise
Holdings, which runs the Enterprise, Alamo and National car rental groups, will
end the discount deal it has with the NRA. So will Avis Budget Group, which
owns Avis and Budget, and Hertz. Similarly, insurance giant MetLife is ending
its discount program for NRA members. The First National Bank of Omaha pledged
to stop issuing an NRA-branded Visa card. The National Rifle Association
released a statement on Saturday saying companies "have decided to punish
NRA membership in a shameful display of political and civic cowardice." At
this point, businesses that work with the NRA are putting their relationships
with customers at risk. Shares of American Outdoor Brands have dropped 8% since
the day after the shooting. Vista Outdoor, which makes guns and ammunition, has
declined 7%. Sturm Ruger is down slightly. All while the broader market has
risen.
http://money.cnn.com/2018/02/25/news/companies/boycott-nra-companies/index.html?iid=SF_LN
4 comments:
While I think it's an interesting twist in the gun rights debate that business has become involved, I've been reading a lot of analyses that are saying that the NRA is more a type of identity than an economic or influence decision. The NRA has the best name recognition of any US based lobbying group and unlike AAA, or AARP, their members feel more personally attached to the actions of the groups (it's identity politics, if you've ever read about that). People don't join the NRA because of the discounts like we join the AAA for hotel and service discounts -- rather, they join because they feel personally tied to the principles that the NRA promotes. All that being said, I think companies cutting ties to the gun lobby is a great publicity stint, a great way for companies to show some moral fiber, but ultimately I don't think it won't affect membership of the NRA, nor it's fundraising efforts.
Just this week Dick's Sporting Goods and Walmart both increased their minimum age to buy firearms to 21 from 18. Dick's Sporting Goods also removed assault rifles from all their stores.This goes to show that a lot of firms are moved by the protests all over the country and maybe the NRA isn't as powerful as it is perceived to be.
In addition, Florida has passed regulation that to purchase a firearm you must be 21 or over. I doubt from an economic standpoint this will have very little impact on firearm sales. With regards to companies dropping partnerships with the NRA this is very interesting. Frankly I had no idea such programs existed.I think by announcing this is a form of advertisement for these businesses.
I think cutting ties with the NRA is an admirable action that for once puts the importance of morality over economics. However, I doubt that the NRA's profits will waver because they still have such a large population of moral and economic support from other companies, politicians, and just everyday people.
Post a Comment