US companies decline to comment on Texas abortion ban

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Several large US corporations that have spoken out about everything from voting rights and racial equality to recognition of transgender people in recent years have so far evaded the polarizing debate over abortion as some of the nation’s strictest restrictions take effect in Texas.

The “heartbeat” law prohibits abortions after heart activity is detected, usually around six weeks into the pregnancy, before many women know they are pregnant.

The average driving distance for a Texan seeking an abortion will increase 20-fold, from 12 miles to 248 miles, according to the Guttmacher Institute. It also provides a reward of at least $10,000 to anyone who successfully sues an abortion provider, which critics have described as an effective reward for health workers.

The law, which was left in place after a narrow 5-4 US Supreme Court decision in the early hours of Wednesday, sparked a national debate over women’s reproductive rights. But unlike other hot social issues of recent years, it has not yet prompted the intervention of a large US corporation.

Texas-based American Airlines, Dell and AT&T were among more than a dozen companies and business groups contacted by the Financial Times that had previously spoken out against controversial legislation in Texas and elsewhere. The companies declined to comment or did not respond to a request for comment on the new abortion restrictions.

However, some smaller companies decided to take a stand. Dating app Bumble said it has created a relief fund to support the reproductive rights of people seeking abortions in Texas and added in an Instagram post that it would “continue to fight retroactive laws.”

Meanwhile, Shar Dube, CEO of dating app maker Match, said in a note to employees that she was “shocked” to live in a “state where women’s reproductive laws are more regressive than most of the world”. Dobby is creating a fund to allow Texas-based employees to seek access to abortion elsewhere.

“The past 36 hours have made American companies highly unstable,” said Jane Stark, senior director of corporate strategy at the Tara Health Foundation, which campaigns on issues of gender and racial equality.

Late Friday, Lyft CEO Logan Green tweeted that the express carrier would create a defense fund for drivers who could be targeted under the law.

“This is an assault on women’s access to health care and their right to choose,” he said. Green also pledged $1 million to Planned Parenthood and invited other companies to join Lyft.

These kinds of hateful and discriminatory legislative steps are only detrimental to our ability as a country to attract high-level business, tourism, and talent.

In 2019, companies including Slack, Square and Yelp signed an open letter arguing that restricting access to abortions is “bad for business.” Several media companies threatened to boycott the state of Georgia if it restricted access to abortion. But in previous cases, courts have intervened, Stark noted, saving executives from having to disclose their positions.

Texas has added four million people to its population since 2010, the most of any US state, and many of its cities rank among the fastest growing cities in the country. The state capital Austin, in particular, has attracted a flood of tech companies and workers from the eastern and western coasts of the United States, thanks in part to the absence of a personal income tax, few regulations, and the relatively low cost of housing.

Activists warn that the state’s shift to the right in social policy, including tightening voting rules and relaxing gun laws, threatens to resurrect the tide of business and white-collar workers who have flocked to Texas over the past decade.

“These kinds of hateful and discriminatory legislative steps are only detrimental to our ability as a nation to attract top-level business, tourism and talent, affecting our continued economic prosperity,” said Tina Cannon, CEO of the Austin LGBT Chamber of Commerce.

Texas Governor Greg Abbott denied Thursday that abortion restrictions are a threat to his state’s ability to attract businesses and workers from elsewhere in the country. In an appearance on CNBC News, he said that Tesla’s Elon Musk was among the recent Texas transplants that supported the state’s tilt to the right, including abortion restrictions.

Musk responded with a vague tweet, saying that he believes that “government seldom imposes its will on people, and in doing so, should aspire to maximize their cumulative happiness.” The Tesla founder added that he “prefers to stay out of politics”.

“I was trying to drum up business in Texas and it was crickets,” said Amy Arambaid, executive director of Avow Texas, an abortion rights group. “Companies, as pillars of our society, especially in Texas which is home to many technology companies, have a duty to stand up for the values ​​of their employees and the people they serve,” she added.

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