With the recent passage of some pretty crappy laws in North Carolina and Mississippi, I’ve seen calls to boycott the states.

But is boycotting the right thing to do? Boycotts have mixed results in bringing about change. The reality is they don’t often substantially impact the target’s bottom line, but instead focus media attention and harm the target’s image, according to Northwestern University’s Brayden King. How much financial impact could individuals have boycotting a state? Even if you add in the various governments that have banned travel, how many of their state and municipal employees are really traveling to MS and NC on “non-essential” business anyway?

King notes that the study has one ironic conclusion: “Companies with poor reputations to begin with are less vulnerable to boycotts, because they have less to lose.”

Extend that to states, and I think North Carolina has more to lose than Mississippi, so a boycott may be more effective there. Indeed, we’ve seen NC getting more media attention, despite the belief of many (including myself) that MS passed a worse law.

Things start to heat up when companies and celebrities get involved. I’m not talking about releasing some empty statement about how they are “disappointed” with the law. I’m talking about PayPal canceling plans to open a new facility (which would have brought 400+ jobs) and Bruce Springsteen canceling a show in North Carolina. These are attention-grabbing headlines. Continue reading →