There has been a number of mass shootings in schools, but somehow this one is different. What is different is the reaction from the students at the Parkland, Florida high school – it is more than a week in the press, perhaps it was simple as saying – politicians have given us no solutions, we call that BS. Wherever you are on the spectrum of owning to opposing guns, a limit is coming. The organization at the center is the NRA or National Rifle Association. They have made their voices heard and given money to politicians to have an open gun policy. (elections that are reasonably well funded have a better chance of winning). Similar to every organization, they try to offer discounts for members who hopefully use the services of the companies.
After the Florida shooting, the President of the NRA doubled down on his position, while the rest of the public said no, something needs to be done. Since the position of the NRA was harden, companies reading the tea leaves or the winds of change have said we are no longer offering discounts to NRA members. According to Newsweek the companies include: Hertz, Alamo Rent a Car, Avis, Allied Van Lines, Bestwestern, Chubb Insurance, MetLife Insurance, Delta Air Lines, First National Bank of Omaha (issued the NRA credit card) and others. If you look at typical corporate decisions, they take time to make. All these companies decided it was not worth the effort to maintain a relationship with the 5 million members and the President of the NRA. If the NRA changes its tactics or stance, the companies may come back to be involved with the association.
Linking to dividend paying stocks, all organizations try to partner or associate themselves with other organizations to increase sales or goodwill. Sometimes they are non profit, help fundraise for causes they like, but at times the organization needs to be changed. The public decides after a number of years it is better to not be associated with the group rather than be associated with it. The process is interesting to watch, how quickly it can unfold. Hopefully the values of the companies you buy stay within the public’s approval for a long time.
There are more questions than answers, till the next time – to raising questions.