Corporate Political Involvement.

• Author: Elson, Charles
• Position: EDITOR'S NOTE

Our current issue is themed on the important topic of corporate political involvement. As a divided nation has become much more politically aware and vocal, there are increasing demands from certain quarters for corporations to take political positions on the varied social issues of our day. For boards, the pressing question is how to respond to these calls for companies to become more politically active.

Historically, corporations avoided politics except where the company's basic interest was Involved (See Richard Sylla's piece on page 16).

Then came the now-landmark U.S. Supreme Court decision in Citizens United. There, the court explicitly allowed the corporation to take vocal (and financially supported) positions on political issues. There was an outcry from the left who feared that hitherto conservative corporations with seemingly limitless funds would corrupt the process of legitimate political debate. What transpired, however, was very different.

Rather than creating a wave of corporate activism promoting conservative causes, many large companies appeared to be on the vanguard of the social justice movement and supported causes that had little to do with their businesses. The result was the promotion of significant social change, as opposed to a reactionary defense of "traditional values." Companies began to reflect the political divisions inherent in our current culture. We have seen the rise of the "red" and the "blue" corporation. The technology sector has become particularly noted for this phenomenon, but the change was not limited to these companies. Numerous public corporations began to take positions on the varied societal issues of our time from gay marriage to global equity and, most notably, climate change, going far astray from their traditionally narrow involvement.

With the recent rebirth of the "stakeholder" movement, it has been forcefully argued that businesses should not be narrowly concerned with shareholder value, but instead become active participants in a broader campaign for social justice. I am not an enthusiast of this development.

It is not that I am unsympathetic to some of the positions espoused. But I do not feel that the corporation is the appropriate place to so advocate and there are several reasons for my reluctance.

The corporation and its various constituencies reflect the diversity of the body politic. Employees, customers, suppliers and shareholders hold viewpoints that may be quite divergent...