Politics, business mixing freely
When Houston voted on whether to protect the rights of transgender people, some of the biggest supporters were corporate leaders fighting for similar protections across the country.
The billionaire Koch brothers, the owners of Koch Industries, have spent millions to promote conservative politicians.
In both cases, corporations and their CEOs have gone beyond lobbying for laws and regulations that will benefit them, and they’ve become more directly involved in electoral and partisan issues, part of a growing trend of mixing business and politics.
Why companies are risking their brand identities is the subject of a recent article on Governing. com. Corporations apparently feel they need to take a stand as their customers become more strident in their personal politics.
Activists have targeted corporations since the 1960s, demanding that they conduct business in a way that doesn’t hurt customers, employees or the environment. This has given rise to the corporate social responsibility report, where companies grade themselves and tout their exemplary behavior to customers.
“Researchers have found that today’s young adults are more inclined to buy products from a company such as Apple if they believe its values are in line with their own beliefs,” the article says. “Those between the ages
of 26 and 35 are 21 percent more likely to buy from a company they feel reflects their values, according to Melissa Dodd at the University of Central Florida.”
Companies are also concerned about recruiting the best workers, and it turns out that millennials are particularly concerned about social issues. That was a major concern for the Greater Houston Partnership and the Texas Association of Business when Houston denied transgender people equal protection.
“Tolerance has become an essential value to most millennials,” the article said. “Companies that want to target that enormous demographic as potential employees feel they must be seen as on board with gay rights.” Traditional values
On the other side of the spectrum, privately held companies like Hobby Lobby feel traditional values and personal freedoms are at risk. They feel that taking strong positions against political issues like mandatory free access to birth control not only reflects their values but builds their brand.
In all cases, these are big gambles. Target is undergoing a conservativeled boycott because it allows transgender people to choose what bathroom they want to use. The company has stood by the decision but will likely pay a price for it. Low chance of unity
The deepening divisions within U.S. society along political lines are becoming more stark, and the 2016 election is unlikely to bring unity. Customers and potential employees are demanding more from corporations than products and paychecks, forcing them deeper into electoral and partisan politics.
This is an uncomfortable position for all companies. After all, the mission is to make a profit, not policy. But sadly, it’s a reflection of today’s divided society.