How to Manage Corporate Political and Social Activity in a Polarized Environment

 

How to Manage Corporate Political and Social Activity in a Polarized Environment

 

In the wake of the January 6 attack on the US Capitol, many US companies reassessed their corporate political activities, including contributions made by their employee-funded political action committees (“PACs”). At the same time, companies are under increasing pressure to take stands on a broader array of social issues. Managing corporate political and social activity in an era of scrutiny and polarization is a daunting challenge. To help companies navigate this complex environment, The Conference Board released two reports: Choosing Wisely: How Companies Can Make Decisions and a Difference on Social Issues and  Under a Microscope: A New Era of Scrutiny for Corporate Political Activity. While managing corporate social and political activity have some things in common – including having clear criteria and processes in place to ensure consistency – there are also significant differences as noted in the chart below in terms of the issues, drivers, regulation, risks, and role of the board of directors.

 

 

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