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Fighting Discrimination

Aired July 02, 2003 - 13:50   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


KYRA PHILLIPS, CNN ANCHOR: The world's largest retailer is taking a stand, officially barring discrimination against gays and lesbians at work. Wal-Mart says the policy change came about after employees lobbied for it.
Chris Huntington is in New York with all the details -- Chris.

CHRIS HUNTINGTON, CNN CORRESPONDENT: Kyra, thanks a lot.

Well, managers at the more than 3,500 Wal-Marts around the country will be getting what Wal-Mart tell us is a document called talking points, that will include in writing for the first time the fact that there can be no discrimination based on sexual orientation. Wal-Mart's previous employment policy had stated there will be no discrimination based on race, color, religion, so forth. But for the first time now, that policy will include, in writing, the words "sexual orientation."

This is a big victory for the activists that have been pushing for this, particularly at Wal-Mart and for a number of other companies. Spoke to a Wal-Mart representative earlier, and here's the statement from the company, saying the new policy "formalizes in writing what our company expectations have always been regarding respect for all people. It is in response to concerns raised by gay employees at Wal-Mart. Shareholder activism did not play a role in this case."

Now we caught up with folks at a Wal-Mart in New Jersey, including a couple of Wal-Mart employees, and here's what they had to say:

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I feel that everyone needs to make a living, and I feel that God don't discriminate people.

UNIDENTIFIED FEMALE: I'm in the middle. It doesn't matter. When I need something from here, I'll get it.

UNIDENTIFIED FEMALE: We actually work here, so we don't have no problem with anybody.

(END VIDEO CLIP)

HUNTINGTON: Now, although Wal-Mart denies that shareholder activism played a role in the policy getting into writing today and right, the fact is that shareholders have been pushing this issue at Wal-Mart and many companies for years. And certainly, they played a role in putting this to the fore, and we spoke to one of the leaders of shareholder activism earlier on why, particularly at Wal-Mart, this is such an important development.

(BEGIN VIDEO CLIP)

SHELLEY ALPERN, SHAREHOLDER RIGHTS ACTIVIST: When a large company like Wal-Mart make a policy change like this, it tends to have a ripple effect throughout the industry. So we can expect that its competitors will want to meet its policy so that they can also recruit from the widest available talent pool.

(END VIDEO CLIP)

HUNTINGTON: Now, Kyra, activists also point out that it's significant in Wal-Mart's case, because this is a company that does business on the ground in areas that are traditionally conservative here in North America. So the fact it has a fully-stated, on the record, progressive policy, albeit on the front lines of conservative America, and from the standpoint of activists, is very, very important. Wal-Mart, though, is holding back on any particular policy regarding partnership benefits. That's another issue that activists are working on, but Wal-Mart for now is not offering benefits to live- in partners of any stripe, if you will. It's only for those that are married -- Kyra.

PHILLIPS: Chris, what do you think? Could there be a domino effect, other companies pick up on this?

HUNTINGTON: Certainly, that's the expectation. But you know, the top ranks of the Fortune 500 have pretty much already fallen in line. Some 70 of the top 71 in the Fortune 500 have explicit policies with respect to nondiscrimination on sexual basis. There's one company near the top of the Fortune 500, and that's ExxonMobil, that has withstood this. So there's one big domino out there, if you will, to fall. But there are a number of smaller companies that certainly will take a lead, will follow the example, no doubt, for Wal-Mart. This is beyond just good public policy, this is good business, in many cases, because if you are seen as discriminatory, that can really hurt you at the checkout line.

PHILLIPS: Chris Huntington, from New York, thanks.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com






Aired July 2, 2003 - 13:50   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: The world's largest retailer is taking a stand, officially barring discrimination against gays and lesbians at work. Wal-Mart says the policy change came about after employees lobbied for it.
Chris Huntington is in New York with all the details -- Chris.

CHRIS HUNTINGTON, CNN CORRESPONDENT: Kyra, thanks a lot.

Well, managers at the more than 3,500 Wal-Marts around the country will be getting what Wal-Mart tell us is a document called talking points, that will include in writing for the first time the fact that there can be no discrimination based on sexual orientation. Wal-Mart's previous employment policy had stated there will be no discrimination based on race, color, religion, so forth. But for the first time now, that policy will include, in writing, the words "sexual orientation."

This is a big victory for the activists that have been pushing for this, particularly at Wal-Mart and for a number of other companies. Spoke to a Wal-Mart representative earlier, and here's the statement from the company, saying the new policy "formalizes in writing what our company expectations have always been regarding respect for all people. It is in response to concerns raised by gay employees at Wal-Mart. Shareholder activism did not play a role in this case."

Now we caught up with folks at a Wal-Mart in New Jersey, including a couple of Wal-Mart employees, and here's what they had to say:

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I feel that everyone needs to make a living, and I feel that God don't discriminate people.

UNIDENTIFIED FEMALE: I'm in the middle. It doesn't matter. When I need something from here, I'll get it.

UNIDENTIFIED FEMALE: We actually work here, so we don't have no problem with anybody.

(END VIDEO CLIP)

HUNTINGTON: Now, although Wal-Mart denies that shareholder activism played a role in the policy getting into writing today and right, the fact is that shareholders have been pushing this issue at Wal-Mart and many companies for years. And certainly, they played a role in putting this to the fore, and we spoke to one of the leaders of shareholder activism earlier on why, particularly at Wal-Mart, this is such an important development.

(BEGIN VIDEO CLIP)

SHELLEY ALPERN, SHAREHOLDER RIGHTS ACTIVIST: When a large company like Wal-Mart make a policy change like this, it tends to have a ripple effect throughout the industry. So we can expect that its competitors will want to meet its policy so that they can also recruit from the widest available talent pool.

(END VIDEO CLIP)

HUNTINGTON: Now, Kyra, activists also point out that it's significant in Wal-Mart's case, because this is a company that does business on the ground in areas that are traditionally conservative here in North America. So the fact it has a fully-stated, on the record, progressive policy, albeit on the front lines of conservative America, and from the standpoint of activists, is very, very important. Wal-Mart, though, is holding back on any particular policy regarding partnership benefits. That's another issue that activists are working on, but Wal-Mart for now is not offering benefits to live- in partners of any stripe, if you will. It's only for those that are married -- Kyra.

PHILLIPS: Chris, what do you think? Could there be a domino effect, other companies pick up on this?

HUNTINGTON: Certainly, that's the expectation. But you know, the top ranks of the Fortune 500 have pretty much already fallen in line. Some 70 of the top 71 in the Fortune 500 have explicit policies with respect to nondiscrimination on sexual basis. There's one company near the top of the Fortune 500, and that's ExxonMobil, that has withstood this. So there's one big domino out there, if you will, to fall. But there are a number of smaller companies that certainly will take a lead, will follow the example, no doubt, for Wal-Mart. This is beyond just good public policy, this is good business, in many cases, because if you are seen as discriminatory, that can really hurt you at the checkout line.

PHILLIPS: Chris Huntington, from New York, thanks.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com