Should corporations stay out of politics?

Abstract: In response to pressure from activists, consumers, and employees, corporations are increasingly taking public stands on contentious social and political issues. Some people have welcomed this kind of corporate political engagement as a step toward a more socially conscious form of capitalism. Others decry it and insist that corporations should stay out of politics. In this talk, I critically examine three arguments against corporations taking political stands: two arguments based on shareholder’s rights, and one argument based on democratic values. I explain why all three arguments fail to justify a corporate duty to stay out of politics, and I show that there are many contentious issues that corporations simply cannot remain neutral on. Corporate leaders thus need to be prepared to position their companies within our increasingly polarized political landscapes.

Host or Publisher Elaine Armstrong