[Issue 102] How this CEO took a stand on gun control
Welcome to this week's special Friday edition of the newsletter. And by special, I mean I was unable to get this out to you any sooner!
I'm excited though because this weekend I'm in Atlanta for the ShePodcasts conference, where I'll be soaking in advice and energy from women who've launched podcasts of their own. I'm really excited to learn and get feedback on my ABL podcast ideas.
So stay tuned.
And speaking of podcasts, this week's topic was inspired by a recent episode of the HBR IdeaCast podcast which featured the CEO of Dick's Sporting Goods, Edward W. Stack, talking about his decision to stop selling assault rifles and high-capacity magazines. (You can listen or read the transcript here.)
I won't lie: It's a pretty dull interview, as most conversations with executives are...
However, it is one of the best conversations I've heard, covering the complexity of and decision making behind taking a stance as a company.
For those who haven't followed this story closely, here's some context:
Mr. Stack said that he and his wife, Donna, have been weighing the moral consequences of selling firearms patterned on the AR-15 and other military-style weapons since the February 2018 massacre at Marjory Stoneman Douglas High School in Parkland, Fla. The couple had learned that the gunman had bought a gun in a Dick’s store. Although that firearm was not used in the Parkland shooting, which left 17 dead, Mr. Stack and his wife met with survivors in Florida.
In April 2018, Dick’s Sporting Goods, one of the largest firearms sellers in the United States, said it planned to destroy the military-style rifles it had agreed to take off its shelves weeks after the shooting. “I said: ‘You know what? If we really think these things should be off the street, we need to destroy them,’” Mr. Stack said.
Since then the company has gone even further by deciding to completely stop selling guns at 125 of its stores, with the others still being decided on.
That decision definitely had consequences for the business:
There were consumer boycotts
Some suppliers decided to stop partnering with the company
More than 60 employees immediately quit, and more later
They lost ~$250 million dollars in sales, and same store sales fell 3.1% during the fiscal year ending in Feb 2019
Stacks says, however, that he never second guessed the decision and that looking back 18 months later, "if we had the chance to do it all over again, we’d do it all over again exactly the same way." He also said that he was surprised by the incredible outpouring of support they received.
Fortunately, since then the company's outlook has improved, with the most recent quarter's same store sales up 3.2%—their strongest performance since 2016. But we will have to wait to assess the long-term impact of the decision.
I'm optimistic.
In the meantime, Stack is using his power to influence Congress on gun reform, and lots of companies like Walmart and Levi's have joined in the fight.
What I'm most impressed with is the level of commitment and authenticity behind the decision. The company acted strategically and took meaningful steps to support their stance.
Even more, the decision came from a sincere position of wanting to make an impact. Despite being a gun owner and a supporter of the 2nd amendment, Stack does not want to live in a world where children live in fear of mass shootings.
He's not foolish enough to believe that his company will solve the problem completely, but he says, "If we do these things and it saves one life, don’t you think it’s worth it?”
I bought his new book so I could dig into his story a little more, and I'll be sure to let you know what I think!
Until next week,
Nikita
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This week's headlines were curated by ABL's intern, Lora.
"We felt that these shootings, we had to try to do something to reduce or stop these shootings, and we all agreed that we would stand up and take this stand."
- Ed Stack, CEO of Dick’s Sporting Goods