Crossed the line
PPL, Crayola owner join titans in pulling campaign donations
The insurrection at the U.S. Capitol has driven a growing list of corporate titans to rethink contributions to politicians, spurring some to freeze donations entirely while prompting others to take aim at the 147 Republicans who voted to overturn the election results.
Add some of the Lehigh Valley’s largest companies to that list.
In a statement, PPL Corp.’s political action committee said it is indefinitely suspending support for the lawmakers who voted against the certification of Electoral College votes.
The Allentown Fortune 500 company’s PAC, People for Good Government, contributed $214,500 to federal candidates in 2019-20, with more than one-quarter of that money going to 14 Republican representatives who objected.
“Moving forward, we will continue to evaluate and monitor how this issue is discussed and debated by elected officials and adjust our support accordingly,” the PAC’s statement read.
The Lehigh Valley’s other Fortune 500 firm, Air Products of Trexlertown, said it is reviewing its policies regarding political giving, while Crayola’s corporate parent is taking it one step further and asking for certain campaign contributions to be returned.
As of Thursday, more than 70 of America’s most powerful and influential companies have pledged to change or evaluate contributions made by their PACs, according to a running list on OpenSecrets, a nonpartisan group that tracks money in politics. Facebook, Microsoft and UPS are among the firms that have paused all political contributions, while behemoths such as Walmart, Amazon and Philadelphia’s Comcast suspended donations to the elected officials who objected to the election results.
“At this crucial time, our focus needs to be on working together for the good of the entire nation,” said Comcast, whose territory extends into upper Bucks County. “Consistent with this view, we will suspend all of our political contributions to those elected officials who voted against certification of the Electoral College votes, which will give us the opportunity to review our political giving policies and practices.”
Bad for business
Major companies have split from politi
cians before, especially lawmakers who become embroiled in scandal, but never before on this scale and intensity, said Christopher Borick, a political science professor at Muhlenberg College.
Many companies, he said, are looking to distance themselves from the GOP officials who stoked unsupported claims about the legitimacy of the election and fueled anger that culminated with the attack on the Capitol on Jan. 6 that left five people dead and dozens injured.
Ultimately, Borick said, a destabilized society and uncertainty aren’t good for business, and many companies may be trying to exert their influence to rein in the Trump-driven direction of the Republican Party.
“They’re certainly not pleased with the challenges to the legitimacy of the institutions that are central to American politics and life, and they want to leverage their ability to move or pressure legislators to not go down those types of paths again,” said Borick, also the director of the college’s Institute of Public Opinion.
While the current quarter — following an election — would typically be one of the slower periods for contributions anyway, Borick said these companies could have a big effect on future elections if they stick to their stances.
“Elected officials rely on financial resources to increase their competitiveness in campaigns,” Borick said. “American elections are expensive and have become more expensive and to succeed, it often requires substantial funding that is regularly drawn from major corporations.”
Money for objectors
PPL’s PAC said it was “shocked and saddened by the terrible events that unfolded at the U.S. Capitol on Jan. 6 and the political divisiveness that we have witnessed at all levels of government.”
Of the $214,500 PPL’s PAC donated in 2019-20, $115,000, or about 54%, went to Republicans, while 46%, or $99,500, went to Democrats.
In the most recent cycle, PPL’s PAC contributed $58,500 to 14 Republicans who objected to the election results, including eight from Pennsylvania. To candidates in Pennsylvania, the largest of those donations were $10,000 to U.S. Rep. Lloyd Smucker, $6,000 to U.S. Rep. Fred Keller and $5,500 to U.S. Rep. Mike Kelly.
People for Good Government said it is a nonpartisan, voluntary PAC that has provided its employees and retirees an opportunity to participate in the political process. The PAC said it is organized and operated separately from PPL and guided by steering and allocations committees made up of a cross-section of employees.
Air Products’ PAC, dubbed Air Products and Chemicals Inc. Political Alliance, contributed $40,000 to federal candidates in the 2019-20 election cycle, spokesperson Art George confirmed. Of that, $9,000 went to nine Republicans who objected to the election results, including four Pennsylvania lawmakers: Smucker as well as U.S. Reps. Scott Perry, Guy Reschenthaler and Glenn Thompson.
George said the contributions to those nine lawmakers were made in 2019. The PAC’s donations, he added, are driven by where Air Products has locations and employees, rather than by political party.
“We continue to review Air Products’ PAC policies regarding political donations, as many others seem to be doing,” George said.
Following the events in Washington,
D.C., Air Products posted a message on its website’s homepage from CEO Seifi Ghasemi.
“Even in difficult times, there is a silver lining,” Ghasemi said. “Hope and unity prevail. Standing together, we can positively impact our world, our regions, our communities and our homes for the better. And together, we will.”
Lehigh University business professor Dale F. Falcinelli said companies’ decisions to withhold campaign dollars speaks about business ethics and corporate values, principles that shape their brands and can determine how they’re perceived by the public.
“I sense a transformation is
underway in the manner in which big, public companies participate in our democracy,” said Falcinelli, a professor of practice. “This may signal the end of an era where corporations assumed an active role in elections through their financial participation.”
While many companies are reevaluating their political contributions, the corporate parent of Forks Township’s Crayola wants a refund from two politicians who challenged President-elect Joe Biden’s victory.
Hallmark Cards Inc., of Kansas City, Missouri, issued a statement Tuesday, requesting that Republican Sens. Josh Hawley,
of Missouri, and Roger Marshall, of Kansas, return contributions they received from the company’s PAC, HALLPAC. In the 2019-20 cycle, OpenSecrets data shows Hallmark’s PAC gave $5,000 to Marshall and $3,000 to Hawley, who was the first senator to announce a challenge to the Electoral College results.
“Hallmark believes the peaceful transition of power is part of the bedrock of our democratic system, and we abhor violence of any kind,” the company said. “The recent actions of Senators Josh Hawley and Roger Marshall do not reflect our company’s values.”
Other companies with a big local presence have remained mum, including shipping giant Uline and Guardian Life Insurance Co. of America. Uline employs more than 750 people across two warehouses in Upper Macungie Township, and Guardian has about 1,500 workers in the Lehigh Valley, many of whom typically work out of the company’s office building in Hanover Township, Northampton County.
Guardian’s PAC contributed $269,000 to federal candidates in the 2019-20 cycle, with about 51% going to Democrats and 49% to Republicans, according to OpenSecrets data. The company did not respond to an email sent Wednesday, inquiring as to whether it has made any changes to its political giving.
Uline, meanwhile, was founded and is run by Liz and Dick Uihlein, megadonors to Republican candidates. The couple has not commented about their plans with political contributions, and their representatives have not answered multiple inquiries by The Morning Call.
The Uihleins were the fourth-largest donors to outside political spending groups during the 2020 election cycle, according to OpenSecrets. The couple contributed more than $68 million to conservative groups in this cycle, OpenSecrets found.
No. 1 on the list was Sheldon Adelson and his wife, Dr. Miriam Adelson, who gave $215 million to conservative organizations. Sheldon Adelson, founder, chairman and CEO of Las Vegas Sands, died Monday night at 87.
Morning Call reporter Tom Shortell contributed to this report.
Morning Call reporter Anthony Salamone can be reached at 610-820-6694 or asalamone@ mcall.com.
Morning Call reporter Jon Harris can be reached at 484-2802866 or at jon.harris@mcall.com.