New Balance's Mitt Romney problem

By Richard K. Barry

I started running recently after having been away from it for a few years. Not that this is very interesting to most people. But, as happens with a new pursuit, I began surfing the net for running products of one kind and another. In the process, I ran right into a post on the New Balance website with the title "New Balance Statement on Political Donation."

If you don't know, New Balance is a running shoe manufacturer and they have been around for as long as I can remember. I'm sure I've owned several pairs of their shoes in one style or another over the years.

The statement in question had to do with the fact that the company chairman, Jim Davis, made a $500,000 political contribution to something called "Restore Our Future," which is a Romney political action committee. This, it would appear, has created a problem for the company.

Here's their statement:

Dear New Balance associates, customers and consumers:

Earlier this year, a private donation was made by our chairman to a political action committee that is affiliated with Mitt Romney. First, let me be clear that this was a private donation and not a contribution from New Balance. We encourage civic engagement at all levels and will always respect the rights of any of our associates to engage in the political process as they see fit.

Mr. Romney recently signed a pledge that challenges same sex marriage and that has offended many including those in the gay, lesbian, bisexual and transgender (LGBT) community. Mr. Romney's position on this issue is not reflective of Jim Davis', my or New Balance's position and support of the gay, lesbian, bisexual, transgender community. As a company, New Balance embraces the differences in all people and we work tirelessly to create and sustain an environment where everyone - our associates, consumers, customers and guests are treated with dignity and respect.

Sincerely,

Rob DeMartini

President/CEO

According to Huffington Post, the statement came after the website Change.org ran a petition demanding to know whether New Balance stood by the contribution made by the company's chairman. We should note that the website received over 2600 signatures before New Balance issued the statement.

Change.org wrote that Romney signed a pledge from the National Organization for Marriage, which argued that:

LGBT families should be broken apart, that same-sex marriage should be banned in the U.S. Constitution, and that married couples in places like Washington, D.C. should have their relationships voided.

But it gets even worse (they say). When Mitt Romney signed the pledge, he agreed to - should he win the 2012 presidential race - appoint judges and an Attorney General supportive of banning same-sex marriage, and to appoint a presidential commission to investigate LGBT supporters.

What I find most interesting in all of this is how quickly New Balance went into damage control. Whether or not it is any indication, every single comment on their website at the time I first found it was from a customer claiming that they will never buy the company's products again.

I don't have an issue with the CEO of New Balance making a donation as a private citizen. Not much we can do about that. It is unfortunate, though, that big corporate money is polluting our political process more and more every day. It's a good thing we can still make decisions about where we spend our dollars and show our "civic engagement" in that way.

So, I hope advocates continue to do research that helps consumers better understand the character and values of the business people they might or might not choose to support.

And I understand that it cuts both ways, and I'm still okay with it.

It really does look like New Balance got caught out and that they are doing their best to spin a bad situation. I wonder if it will significantly effect their market share. I know I'll have no difficulty choosing from among the countless, non-New Balance, running products on store shelves.

(Cross-posted at Lippmann's Ghost.)