CEO’s op-ed piece on health care viewed as risky
Website opposing Whole Foods chief gains members
At a time when the subject of health care reform is being debated nationwide, some business analysts say it was risky for Whole Foods Market CEO John Mackey to pen an opinion piece this month in The Wall Street Journal in which he wrote that people have no “intrinsic right to health care.’’
Even though protests planned at the company’s stores in Cambridge and Framingham drew small crowds of supporters, a group on the social networking website Facebook called “Boycott Whole Foods’’ has attracted more than 26,000 members. And observers say the Whole Foods brand may have been damaged.
“He’s managed to not only put his foot in his mouth, but to create injury for shareholders and other people connected to Whole Foods, like suppliers,’’ said James Post, a Boston University business professor.
“They’ve worked so hard to nurture this image of Whole Foods as a positive lifestyle oriented business. . . . This puts a black mark on that.’’
In the op-ed, Mackey quotes Margaret Thatcher and suggests health care reform that would equalize tax laws between individual- and employer-provided health insurance, repeal government mandates regarding what insurance companies must cover, make costs more transparent, and let people check a form to make voluntary, tax-deductible donations to people who have no insurance.
“While we clearly need health care reform, the last thing our country needs is a massive new health care entitlement that will create hundreds of billions of dollars of new unfunded deficits and move us closer to a government takeover of our heath care system,’’ he wrote.
Mackey, who is on vacation, was unavailable for comment. But company spokesperson Robin Rehfield said Mackey’s piece represented his personal views and not those of the company. Still, the small protests and boycott movement haven’t affected business, Rehfield said.
“There have been some people that have come in and explained their thoughts on the situation, but it’s been both sides,’’ Rehfield said. “We just want to assure shoppers that we’re going to keep doing what we do best, which is selling the highest quality natural and organic foods.’’
This is not the first time Mackey’s comments have caused some controversy. Recently, he said the Whole Foods chain sells “a bunch of junk.’’ And in 2007, Mackey was investigated by the Securities and Exchange Commission and later apologized for anonymously bashing competitor Wild Oats on online message boards. Whole Foods eventually bought Wild Oats.
Even though Mackey was cleared by the SEC of any wrongdoing, he told the Globe last year that he could have handled the Wild Oats incident differently.
“I have to be more thoughtful and careful with what I say because it could show up on the front page of The Wall Street Journal or The Boston Globe,’’ he said then. “I have all these people who never actually read my postings, who don’t know anything about me, but got all these judgments about me now.’’
Post calls Mackey a “loose cannon’’ and said he thinks his latest comments won’t go unnoticed. “I can’t imagine at the next annual meeting that there won’t be some comments saying, ‘John, why don’t you keep your mouth shut?’ ’’ Post said.
Protests of Mackey’s op-ed piece Friday drew about a dozen people outside the company’s Framingham store and around 30 outside the Cambridge location. Protesters handed out fliers calling for Mackey to be fired.
“I was so incensed by The Wall Street Journal article that I had to do something,’’ said Newton resident Maxine Bridger, who carried a sign outside the Framingham store reading “Health Care is a Human Right.’’
Several customers that day said they were unaware of the opinion piece and that it wouldn’t affect their shopping habits. Diane Arnheim, a shopper who agrees with Mackey’s views, said she would come to the store even more often to counter the protests. “Maybe I’ll come twice a week,’’ Arnheim said.
Neal Hartman, a senior managerial communications lecturer at MIT, said the boycott movement is unlikely to have a large impact.
“For a lot of people, they may not like that he said that, but they may not simply quit shopping at Whole Foods,’’ Hartman said.
Sandra Waddock, a professor of management at Boston College, said hearing a CEO’s prospective on a given issue can be good. “It’s always risky for a company’s spokespeople to step out on these public policy issues,’’ she said. “On the other hand, they are often in a position to have a deeper understanding of them. We want to hear reasoned perspectives from both sides.’’ 