Tim Cook "So let me be clear: I'm proud to be gay, and I consider being gay among the greatest gifts God has given me."

APPLE CEO, TIM COOK (Brand, 2013)

Tim Cook, the CEO of Apple since Steve Jobs passed away in 2011, has recently come out publically as gay. He is the first Fortune 500 chief executive to ever publicly state that he is homosexual. This will likely have some implications for Apple one many levels. While most people feel that this is a personal choice that Tim Cook has made and has no relevance for his position as CEO, others will likely be dismayed by Apple and its leader. Some conservatives have announced that Tim Cook has a right to be gay, but announcing his personal sexual preferences publically is a new story. This puts the CEO and by affiliation Apple into a political debate that will likely stir up some resentment. Apple should respond to these debates by standing behind their leader and the advantages of diversity in general. This report will analyze the situation and offer some recommendations for Apple moving forward.

Background

Apple Inc. Chief Executive Tim Cook said recently that he was "proud to be gay," a declaration that puts an openly gay man at the helm of the world's most valuable company (Feintzeig & Wakabayashi, 2014). He has been the most prominent figure to come out about his sexuality so far. The business community has been one of the last communities to have an openly gay representative. The National Football League, the National Basketball Association and the U.S. Senate have all seen their first openly gay representatives in recent years (Love, 2014).

Although Cook has stated that he is not an LGTB activist, simply by making his preferences public will hold some ramifications for Apple and the business world in general. Cook had been rumored to be gay for many years however publically stating that he is gay puts him on a pedestal on many different levels. Experts say dual forces account for the shortage of openly gay CEOs. While fear of hurting business keeps some executives in the closet, lesbian, gay, bisexual or transgender employees must also break through a so-called "pink ceiling" as they climb the ranks, advocates say (Love, 2014).

Tim Cook's Words

Tim Cook seemed to fully understand the ramifications of his actions which is evident in his statements. Cook stated that:

"I believe deeply in the words of Dr. Martin Luther King, who said: 'Life's most persistent and urgent question is, 'What are you doing for others?" I often challenge myself with that question, and I've come to realize that my desire for personal privacy has been holding me back from doing something more important. That's what has led me to today.

"For years, I've been open with many people about my sexual orientation. Plenty of colleagues at Apple know I'm gay, and it doesn't seem to make a difference in the way they treat me. Of course, I've had the good fortune to work at a company that loves creativity and innovation and knows it can only flourish when you embrace people's differences. Not everyone is so lucky."

"Being gay has given me a deeper understanding of what it means to be in the minority and provided a window into the challenges that people in other minority groups deal with every day. It's made me more empathetic, which has led to a richer life. It's been tough and uncomfortable at times, but it has given me the confidence to be myself, to follow my own path, and to rise above adversity and bigotry. It's also given me the skin of a rhinoceros, which comes in handy when you're the CEO of Apple."

Backlash

Homosexuality is definitely a sensitive subject in many cultures. Cook himself states that held off on making a public statement for quite some time. "I decided very early on that the best thing was to not expose my sexuality because it would be unacceptable or dangerous," he told NPR earlier this year (Lowrey, 2014). In fact he went his whole career, which has been entirely successful, with not coming out publically because of the possible ramifications.

Fearing the consequences for their careers, executives and employees further down the hierarchy often feel they need to keep quiet about their sexuality in the office; but now that the leader of the world's most valuable company has come out, many more employees are likely to feel empowered to do the same, said Selisse Berry, founder and CEO of Out and Equal, a San Francisco nonprofit that advocates for gay rights in the workplace (Love, 2014). However, this push...

Rather he focuses on constitutionality and the power of state's rights. Cruz rerouted the conversation to deal with how the homosexual agenda affects states' freedom to decide on the issue themselves.
"This is something we've seen over and over again, which is the federal government and federal courts deciding they don't trust the people," Cruz contended. "They look down on the people -- they don't trust us to make judgments about our own lives, so the federal government and federal courts are going to step in and impose their own policy preferences (Haverluck, 2014)."

Other faith-based groups have also announced their disapproval. These organizations wish to promote their definition traditional marriage and traditional family values. They have called for their members to vote with their wallets. They are also organized and have an app called 2nd Vote (ironically available on iTunes) which rates different companies on their values. "Over the past couple of years, several programs and apps have exploded on the scene to help Americans not just voice their values, but shop them," informed Perkins. "One of those options is 2nd Vote, which evaluates companies on a host of issues including life, marriage, the Second Amendment, and the environment (Haverluck, 2014)."

2nd Vote iTunes description: The 2nd Vote app is a consumer tool that helps you "vote" with your shopping dollars. It reveals both the companies that fund the conservative causes we support, and the liberal causes we oppose, on an issue by issue basis. This app is useful whether you are conservative on one issue or every issue. (Apple, N.d.).

Figure 1-2nd Vote Screenshot (Apple, N.d.)

It is likely that the announcement of Tim Cook will have some implications for Apple in certain demographics. The example of the conservative Christian groups only represents one example out of many potential disgruntled Apple shoppers. However, it could also benefit Apple by rallying those in support of equal rights. Even though Cook's announcement may not have an impact on Apple's sales in the U.S., it could in other countries because 60% of their sales are international. Apple is the largest company on the planet and there are more than 75 countries where being gay is illegal, including a third where it is a crime punishable by death (Hamm, 2014).

Change Management

Even before Tim Cook had publically come out he was involved in certain LGTB issues. Cook had lobbied publicly for passage of the Employment Non-Discrimination Act, had marched in a San Francisco Pride parade, and his company had stood up in Arizona when Gov. Jan Brewer was deciding whether to provide a stunning religious exemption that many said would lead to discrimination against LGBT people (Grindley, 2014). Most of his co-workers already knew that he was gay long before he actually announced it. It was actually called one of the worst kept secretes in Silicon Valley (Zibreg, 2014). Thus there are probably not going to be any serious ramifications inside the company itself. Cook made this statement:

"The company I am so fortunate to lead has long advocated for human rights and equality for all. We've taken a strong stand in support of a workplace equality bill before Congress, just as we stood for marriage equality in our home state of California. And we spoke up in Arizona when that state's legislature passed a discriminatory bill targeting the gay community. We'll continue to fight for our values, and I believe that any CEO of this incredible company, regardless of race, gender, or sexual orientation, would do the same. And I will personally continue to advocate for equality for all people until my toes point up (Cook, 2014)."

Cook and Apple should receive a boost in brand power from many different sources. The acquisition of equality for Americans has moved at a rapid pace since the Supreme Court struck down a key portion of the federal Defense of Marriage Act (DOMA) last year, allowing the U.S. government to start recognizing same-sex marriages; Supreme Court Justices rejected appeals to hear same-sex marriage cases out of Indiana, Oklahoma, Utah, Virginia, and Wisconsin -- all of which saw their bans fall in both federal district and appeals courts, immediately legalizing marriage equality…