In today’s climate of heightened polarization, intensifying public scrutiny, and shifting political dynamics, companies that engage in political spending face significantly greater risks than in the past. To help companies navigate these growing risks, the Center for Political Accountability recently released Corporate Political Spending: What Are the Real Risks?, a report that lays out the escalating financial, legal, and reputational threats companies now face.
The reports examines both immediate risks and emerging risks. Companies that lack a strong framework to guide their political contributions risk triggering public backlash, boycotts, regulatory retaliation, corruption, and employee dissatisfaction.
The report details high-profile cases — from Tesla’s stock volatility to Disney’s feud with Florida’s governor and the fallout from FirstEnergy’s billion-dollar bribery scandal — to show how poorly governed political spending can damage a company’s bottom line and credibility.