In every corporation people work for the company and although the corporation generally stays away from hot political issues, by there nature of employing thousands of people, some issues will come forth. Generally, corporations will say we pay your reasonably well to make your own decisions, however sometimes what the corporation will pay or not pay for in expenses means it is wading in political issues.
In some companies, sometimes these issues are lead by unions try to negotiate the benefits, other times it is companies trying to ensure it can attract people to the organization.
In an article from the Associated Press, Tesla is covering travel costs for US employees seeking out of state abortions. The company said in its 2021 Impact Report it expanded its Safety Net program and health insurance offerings.
Texas State Representative Briscoe Cain has said he will propose legislation baring local government in the state from doing business with any company that provides travel benefits for employees seeking abortions. US Senator Marco Rubio introduced a bill that would prohibit companies from claiming tax deductions for such costs.
The elephant in the room or the issue for Texas is Tesla recently moved its head quarters from California to Texas and was expanding to expand production in Texas. The majority shareholder of Tesla is Elon Musk who owns Space X which has its home base in Texas. Will those bills die on the books or become law? If you read the books on Space Barons which includes Space X or Power Play which is about Tesla, you will know the government has given billions to the companies. What will Tesla or Texas do?
Linking to dividend paying stocks, as an investor when you buy the shares you are concerned about the financial concerns of the company and expect it to be a good corporate citizen as it continues to make profits and pay dividends. To do that means the company has to attract and retain employees but as an investor what policy it has or does not have is generally not materially connected to make profits. As individuals you can make decisions about what the company should or should do but as long as they are not breaking the law, it is generally not something to be concerned unless it is affecting senior management’s time and resources.
There are more questions than answers, till the next time – to raising questions.