Harvard economist John Kenneth Galbraith once said politics is “the art of choosing between the disastrous and the unpalatable.” If this is true, it seems wise for any retail business to tread carefully into political action, especially when feelings run hot.

Indeed, most Americans would likely agree with Galbraith. A study by policy and communications firm Global Strategy Group found that most Americans believe that mixing business and political activity is quite an art.

While most (72%) believe that corporations should take action on important issues in society, and even more (78%) say it’s appropriate to advocate on an issue pertinent to their industry, 56% say it’s not appropriate for companies to take on politics not germane to their business. And only 31% say it’s okay for businesses to stake out positions on especially sensitive issues like abortion or gay rights. 

A perfect example of seemingly choosing the disastrous and the unpalatable? Hobby Lobby’s grand win at the Supreme Court this week.

Hobby Lobby’s politics are now indelible

The crafts retailer ignited a political firestorm after the Supreme Court, in a close and contentious 5-4 decision on Monday, agreed with its lawyers that privately held companies shouldn’t have to cover certain types of birth control in their employees’ health benefits packages, if the business’s owners object for religious reasons. 

And while in its majority opinion the Supreme Court took pains to note that the decision was a narrow one, many pundits, experts, and advocates agreed with Justice Ruth Bader Ginsberg’s warning that the precedent would surely mean sweeping and possibly unintended consequences. 

In fact, within two days, religious leaders wrote a letter to the Obama administration requesting a waiver from a new federal ban on discrimination based on sexual orientation or gender identity on the part of government contractors. And that was a sign that Hobby Lobby would continue to, possibly always, be affiliated with its Supreme Court activism, possibly even more so than with the crafts supplies it sells.

In the long run, Hobby Lobby's current victory is far from certain. The Supreme Court's decision, even if it has far-reaching implications, could be greatly altered by the Executive Branch and Congress (not necessarily the current ones), by states, and by voters and public opinion in ways the retailer has no clue about today.

The trouble with mixing business and politics

One prominent reason that business and politics don’t often mix — and one that is especially true for retailers — is that such activity can send a message that certain people aren’t valued or wanted. 

For many who are pleased with a company's donation to a certain campaign, others will be offended. And that could mean people walking out of a store, or maybe worse, never walking in. Then of course, a retailer might invite protests of the sort that block entrances, fill social media feeds, and find other creative ways to make a point.

The bold political bent Hobby Lobby has chosen has also invited criticism from surprising quarters; a Christian columnist took the crafts retailer to task for other policies he says don't fit with the retailer's claims of faith-based ethics.

Besides turning off potential and even once-loyal customers, overly political moves can take up a lot of a retailer’s time and energy. In 2010, the disclosure that Target had donated $150,000 to a political group running ads in support of a gubernatorial candidate in Minnesota who opposed same-sex marriage helped spark a boycott movement that has adherents to this day. 

As a consequence of the donation, Target’s management ultimately apologized and the company ended up pledging support to LGBT causes. A couple of years later anti-gay groups were calling for their own boycotts of the retailer. 

The evolution of LGBT issues in general, though, is an interesting one for retailers. As many Americans have quickly grown not just accepting but also supportive of same-sex marriage and other rights for LGBT people, retailers have made a point of demonstrating their support, too. On average as a group, LGBT consumers are among the nation's wealthiest customers.

Boycotts don’t hurt much, but they can make a mark

The boycott of Target is technically still ongoing, yet the retailer is hardly in danger of going out of business. Likewise, the vehement calls for boycotting Hobby Lobby after last week’s Supreme Court decision won’t likely put that retailer out of business, either, or do anything to water down the finances of its extremely wealthy owners. 

Still, the crafts retailer has likely cornered itself into a situation where growth is now much more complicated in what is still a tough retail market, including in the crafts area. The company does little e-commerce, something that could have helped it branch out beyond its regional presence.

And, while it is pleasing those who agree with its principles, it must also do business with suppliers, real estate agents, bankers, and a host of other businesses that might have preferred to leave politics out of it. 

When taking no side doesn’t work

Recently, Target once again had to change course in the face of protests, this time after it tried to avoid taking a stance on gun rights. The retailer had attempted a policy of deferring to open carry gun laws and prevailing​ public opinion in local areas, improvising its own policy on whether or not to allow guns in its locations on a store-by-store basis.

But gun control advocates, which included some pro-gun people uncomfortable with the idea of guns in stores or near children, forced the company to take a stand. Just this week Target asked its customers to keep guns out of its stores regardless of the legality of local open-carry policies in any given area.

Doing the "Right Thing"

While there are plenty of causes with seemingly broad appeal, it can be difficult for retailers to find any that are controversy-proof. (After all, one person’s “issue faced by society” is another person’s “especially sensitive issue.”)

Still, retail companies participate in charity events and programming all the time, which is unlikely to incur the wrath of most reasonable people. In fact, doing good can help retailers build loyalty among their customers.

Sometimes that work starts at home for retailers. Increasingly, consumers are interested in, for example, how a retail business sources its products. Environmental sustainability is at the top of most consumers’ minds. But many consumers, especially millennials, also have growing concerns about how workers are treated in overseas factories. 

In any case, Hobby Lobby is likely going to go down in history for its political activism, probably well after it has sold its last scrapbooking supplies.

Perhaps that’s how they want it. Amid tweets the past few days touting a few sales and promotions, the retailer’s own Twitter feed kept the controversy front and center. 

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