“Chipotle’s anti-discrimination policy states that the company shouldn’t support organizations that exclude based on sexual orientation. When company leaders found out about the promise to offer coupons, they nixed the idea, Chipotle spokesman Chris Arnold said.”
And while I tend to avoid writing about issues that can become quickly lost in a sea of divisive emotion and opinion, a discussion with an investing acquaintance led me to consider a different opinion: Did backing out of the
commitment make sense?
I think so, but my acquaintance thinks that Chipotle Mexican Grill, Inc. (NYSE:CMG) should have lived up to their commitment to the Scouts. If someone within the organization had the power to commit to it despite the Scouts exclusionary policy regarding gays, then the company should accept the commitment and move forward.
However, my opinion is that Chipotle’s first obligation is to remain committed to it’s core policies and beliefs. As I wrote to my acquaintance, “I am sure that Chipotle’s gay employees appreciate working for a company willing to make a stand for equality.” From Chipotle’s charitable giving policy (bold mine for emphasis:
“Chipotle Mexican Grill, Inc. (NYSE:CMG) will not support organizations that discriminate against a person or a group on the basis of age, political affiliation, race, national origin, ethnicity, gender, disability, sexual orientation or religious belief.”
While the issue at hand is that someone at the company made a mistake in commuting to an organization that did not fall within the ethical guidelines of Chipotle Mexican Grill, Inc. (NYSE:CMG), and the company chose to stick to it’s policy (which I admire,) what does this mean for investors?
In the smaller sense little, but in the big picture maybe everything
In many ways this emphasizes what makes Chipotle Mexican Grill, Inc. (NYSE:CMG) the kind of company that I love. I’m a big proponent of investing in companies that are actually following through with their words about making the world better. That includes Whole Foods Market, Inc. (NASDAQ:WFM) , and Google Inc (NASDAQ:GOOG) .
Consider Whole Foods Market, Inc. (NASDAQ:WFM)’ Motto- Whole Foods Market, Inc. (NASDAQ:WFM), Whole People, Whole Planet, and the company Declaration of Interdependence; written by employees more than 16 years ago and still the guiding set of principles that directs the company today.
Take Google’s Ten things we know to be true, also written years ago and still guiding much of what the company does. The mission of providing access to as much information as possible is the thread that connects this very diverse company’s many endeavors and interests. Whether it’s Google Fiber, self-driving cars, or Android, the simple fact is these are all things that provide easier access to Google’s core Search business, which has done countless good for society, (including settling many an argument in my home).
No matter one’s personal beliefs, or the cynical view that the prior paragraphs are all just fluff and hogwash, making money is why you are reading this. With that in mind, consider this:
Not too shabby for toeing the ethical line, eh? And remember, that’s from the 2007 market peak. If you invested during the recession, you’re doing even better.
I will acknowledge something else: These are also three of the best-run businesses out there. But when it comes to practices that are based on openness, inclusion, and not looking the other way in the face of things that don’t jive with the company’s beliefs, that’s something most investors should agree is worth getting behind. The high level of operational excellence that these three companies share can surely be attributed to their focus on being good members of society as well as being excellent businesses.
Foolish final thoughts
I personally own all three of these companies, and would encourage any investor to buy today. The bottom line is, not only are they dominating their markets, but the are dominating markets with a long run-way of growth. Add in that they are actively doing it while choosing to make the world they operate in better, and more open and inclusive, and it’s a reminder that “profits first” isn’t the only way, or even the best way, to win.
Share your thoughts in the comments below!
The article Making an Ethical Stand: Does It Matter to Investors? originally appeared on Fool.com and is written by Jason Hall.
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