The Problem with Politicizing Corporations.

• Author: Lemieux, Pierre
• Position: BRIEFLY NOTED

In his 1973 book Capitalism and the Permissive Society, the late Financial Times columnist Samuel Brittan observed that "businessmen can usually be relied upon to defend the indefensible aspects of their activities while giving in to their collectivist opponents on all essentials."

The corporate political positions that have become fashionable of late contribute to a dangerous trend that undermines the separation between economic and political power. Note that "power" has a different meaning in the two cases--corporations cannot send anybody to jail--but the difference shrinks when corporations become less distinguishable from the state.

Of course, private corporations--as "private" implies--should be free, through their executives, directors, and ultimately shareholders' assemblies, to determine corporate positions on any issue, express their political opinions, and peacefully act upon them. One would think that the diversity of their shareholders' and their customers' political opinions would check this politicization, but the principle remains valid. Contrary to what some activists on both ends (and elsewhere) of the political spectrum think, free speech is important. But we also have the right, following Brittan and other classical liberal thinkers, to tell corporate officers and shareholders that they are often being naively caught in debates they don't understand and that they are acting against their own interest and that of their customers.

New voting laws/ In April, more rhan 300 corporations, their chief executive officers, and other executives issued with great fanfare a statement against proposed and recently enacted changes in state voting laws, most notably in Georgia. The merit and intent of these changes are debatable, with reasonable and not-so-reasonable arguments being offered both for and against them.

It is noteworthy that these laws are pushed by Republican state governments and that, as pointed out by the New York Times, two-thirds of Georgia absentee ballots were cast for Democratic presidential candidate Joe Biden. There is room for thinking that these "publicly minded" politicians are indirectly trying to target the voters who don't vote for the "right" candidates. The issue is partisan and related to Republican Donald Trump's baseless claims of election fraud after his humiliating defeat in the 2020 presidential election. On the other hand, it's doubtful the changes will have much effect on election outcomes, even in especially tight Georgia.

So, should corporations...