A group of religious investors is warning some of the largest U.S. retailers, including Costco Wholesale Corp. and Walmart Inc., against selling the abortion pill mifepristone.
Companies that offer the drug risk reputational damage and legal consequences, according to an Aug. 2 letter to the chief executives of the two retail giants, as well as Kroger Co., Albertsons Co. and Dallas-based drug distribution company McKesson Corp. The group said 6,000 Costco customers had signed a petition declaring they would cancel their memberships if the retailer began selling the pills.
The religious coalition behind the petition owns about $172 million worth of stock in the five companies. The coalition was led by Inspire Investing, based in Boise, Idaho, which manages $3 billion in assets and also owns the investment arm of the Southern Baptist Church and the American Family Association, a Christian fundamentalist group.
Walmart declined to comment and the four other companies did not respond to requests for comment.
The letter was in response to the New York City Comptroller’s decision to urge retailers to start selling mifepristone. The comptroller, who said he owned more than $1.3 billion worth of stock in those five companies, warned them of lost sales opportunities if they did not do so.
A spokeswoman for Auditor Brad Lander declined to comment.
Mifepristone is used in more than half of all abortions in the United States. In June, the U.S. Supreme Court unanimously overturned a federal appeals court ruling that would have banned mail-order prescriptions for the drug.
CVS Health Corp. and Walgreens Boots Alliance Inc., the two largest pharmacy chains in the United States, have already agreed to distribute the pills.
The push by religious groups against the abortifacient is part of a broader effort by conservative groups to push back against progressive investors in areas such as environmental activism, diversity and LGBTQ initiatives.
“We advocate for companies to focus on their core missions, do good work for their customers and stay out of divisive social issues,” said Robert Netzly, CEO of Inspire, in an interview. “Companies understand that it is risky to just go along with it and cave in to these activists.”
The backlash against so-called “woke capitalism” has led to lawsuits, boycotts and other pressure on companies not to bow to liberal groups. Companies have said they still stand by DEI, even as they remove references and minimize some programs.
In recent weeks, Tractor Supply Co., Deere & Co. and Harley-Davidson Inc. have come under fire from conservative activists for their stances on social issues. The companies also risk a backlash from progressives for their backlash.
– Jeff Green and Saijel Kishan for Bloomberg
