Haley retorted by claiming that the Confederate flag has not kept companies from coming to the state.
"What I can tell you is over the last three and a half years, I spent a lot of my days on the phones with CEOs and recruiting jobs to this state. I can honestly say I have not had one conversation with a single CEO about the Confederate flag," she said.
She also said that she herself has helped combat the state's image problem.
"But we really kind of fixed all that when you elected the first Indian-American female governor," Haley said. "When we appointed the first African-American U.S. senator, that sent a huge message."
Libertarian candidate Steve French said that while he doesn't mind if individuals display the Confederate flag, he doesn't think businesses should be able to.
"So, if you want to paint your house in the Confederate flag, I am completely fine with that," he said.
Watch a clip via Raw Story: