Arizona’s Anti-Gay Service Bill, A Recipe for financial Disaster?

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Arizona's Anti-Gay Service Bill, A Recipe for financial Disaster

Arizona Governor Jan Brewer has a big decision to make by the end of the week, one that balances civil rights with freedom of religious expression. And while politicians, pundits, activists and the talking heads have all expressed some point of view on Senate Bill 1062 — the so-called “anti-gay service” proposal that passed the Arizona state legislature last week — Brewer’s decision will likely have little to do with civil rights and everything to do with the almighty dollar.

Several companies have made it clear that Arizona could face economic hardships if SB 1062 becomes law. The National Football League, whose championship Super Bowl football game is expected to be played in the state next year, says it is closely watching how things develop with the bill. American Airlines, Delta and Southwest — three carriers that fly to several metropolitan airports in the state — condemned the law as being tourism-unfriendly. And more than 80 other businesses have endorsed a letter saying the bill, if enacted, would severely tarnish Arizona’s reputation, creating an image that the state is “judgmental and unwelcoming.”

Businesses started crying foul over the bill after California-based Apple, Inc. reportedly called state officials urging Brewer not to sign it. Like Arizona, Apple stands to lose a lot if SB 1062 is signed into law.

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Last November, Apple announced it was buying a vacant, 1.3-million-square-foot plant in Mesa, a town 20 minutes outside the state’s capital, Phoenix. The $114 million purchase would bring 700 permanent jobs and 1,300 temporary construction positions to a city that was devastated by the 2007 housing crisis.

The factory would manufacture scratch-resistant sapphire glass for Apple’s mobile products. Sapphire is a very important crystal for Apple devices: the material is used for camera lenses and a fingerprint sensor found in Apple’s latest iPhone, and there are reports that suggest Apple may be moving away from Corning’s Gorilla Glass in favor of glass made from sapphire for its touchscreens. If true, that means Apple will need to manufacture a significant amount of sapphire glass over the next few years (especially considering that what is usually introduced in an iPhone eventually makes its way to Apple’s iPad tablet computer, and possibly to other products).

But Apple may be hesitant to do business in a state with socioeconomic values that differ from its own. Since Apple co-founder and CEO Steve Jobs resigned three years ago, the company has taken a more progressive stance on social issues, including those that affect the LGBT community. Last year, the company was one of 300 business to file a brief with the Supreme Court expressing support for same-sex marriage. Shortly before the Mesa purchase was announced, Jobs’ successor, Tim Cook, penned an op-ed for the Wall Street Journal throwing his support behind the Employment Non-Discrimination Act, proposed federal legislation that would prohibit a company from screening out job seekers on the basis of sexual orientation or gender identity.

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“These values have also recently guided us [at Apple] to support legislation that demands equality and non-discrimination for all employees, no matter who you love,” Cook said at an event in December. “I have long believed in this, and Apple has implemented protections for employees even when the laws did not. Now is the time to write these basic principles of human dignity into the book of law.”

The opposite appears to be happening in Arizona. Apple hasn’t said what it will do if the bill is signed (Brewer has until Friday to sign or veto it; if she does nothing, the bill automatically becomes law). What you probably won’t see is Apple and other large businesses pulling their business completely. You’ll still be able to buy Apple computers at one of its five Arizona-based stores; Delta, American and others will continue to fly to the metro airports; and the NFL will probably keep the Super Bowl in Phoenix.

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And there will be those who charge the companies that stay in Arizona with selling out their values in exchange for a dollar. Consumers will respond by spending their money elsewhere.

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