McCrory signed an Executive Order on Tuesday reaffirming what he says maintains "common sense gender-specific restroom and locker room facilities in government buildings and schools."
McCrory did vow to seek legislation in the short session that would reinstate the right to sue the state for discrimination. That right was eliminated under HB2.
He also is expanding the state's Equal Employment Opportunity policy to include sexual orientation and gender equality.
In a YouTube video released by his office, McCrory acknowledged the heavy criticism of House Bill 2 while defending it.
"I have listened to the people of North Carolina," McCrory said in a video message. "The people of North Carolina are entitled to both privacy and equality. We can and we must achieve both of these goals."
The Executive Order is getting a lot of reaction. The ACLU, which is suing the state for discrimination, calls it a "poor about face." Attorney General Roy Cooper tweeted out the Executive Order was a "day late and veto short."
On Tuesday evening, McCrory added: "Now I know these actions will not totally satisfy everyone, but the vast majority of our citizens want common sense solutions to complex issues. This is the North Carolina way."
RELATED: REACTION SWIFT, MIXED TO MCCRORY'S HB2 ANNOUNCEMENT
HB2, in part, mandates people must use the bathroom that matches the sex on their birth certificates.
Opponents argue it's discriminatory, and there has been a litany of outrage.
RELATED: NC CITIES FEEL ECONOMIC IMPACT OVER HB2 BACKLASH
Tuesday night, Asheville's city council unanimously passed a resolution calling HB2 unconstitutional and called for it to be repealed. The city plans to send its resolution to state legislators.
Duetsche Bank also announced Tuesday it is freezing expansion in Cary. The move would have created 250 jobs.
Singer Bruce Springsteen has canceled a concert in Greensboro. Singer Jimmy Buffet is still holding two concerts in the state, but calls the law "stupid."
Gregg Allman, who has a concert lined up in Greensboro Wednesday night, posted a message on his official website explaining that he opposes the legislation, but plans to perform.
"I know that North Carolina is a state full of good folks and loyal fans, many of whom are angry about and feel misrepresented by this action," he said in part.
RELATED: NC BILLBOARD POKES FUN AT TAR HEEL STATE OVER HB2
Athletes such as Charles Barkley are demanding that the NBA move next year's All-Star game out of Charlotte. The game alone is worth $100 million in business.
"I'm supposed to stand up for the people who can't stand up for themselves," Barkley said.
McCrory is responding to the backlash.
"I have come to the conclusion that there is a great deal of misinformation, misinterpretation, confusion, a lot of passion and frankly, selective outrage and hypocrisy, especially against the great state of North Carolina," McCrory said.
Lawmakers will be back in Raleigh in about two weeks. Some opponents are calling for a special session before then to repeal the law.
On Monday, supporters of the law held their biggest rally yet, drawing at least 700 supporters. Another pro-HB2 rally is in the works for the day when lawmakers reconvene in Raleigh.
The Associated Press contributed to this story
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