Numerous organizations and Republican lawmakers condemned the bill before the veto, shedding negative light on the state.
"The negative national and international publicity that our state has already received -- it sends a message that our state is not a warm, welcoming place," Stanton said. "And the truth is, we are!"
Stanton fears that the bill helped to paint a picture of a hostile culture in Arizona even without the actual law in place.
"If you're making a decision about where you're going to ask your top employees ... to locate, some of them, because of the things they've read recently about Arizona, they may have a second thought about moving there. That's how this hurts us," he said.