Explore how corporate political spending can create reputational and business risks, and how transparency, board oversight, and alignment with corporate values can support responsible political engagement.
A research primer from the Impact, Value, and Sustainable Business Initiative at the Wharton School (Wharton Impact) and the Center for Political Accountability (CPA)
At the intersection of business and politics in America, a new era has emerged, one marked by growing attention to political and social issues. The amount of corporate and top-level executive money going into political races is at an all-time high. Since the Supreme Court’s 2010 Citizens United v. Federal Election Commission decision, political contributions from corporations have skyrocketed.
“Is it possible that one of the most critical, timely, and impactful risk factors facing your company has been overlooked?”
— William S. Laufer, Faculty Co-Director of the Zicklin Center for Governance and Business Ethics
Corporate political spending is of intense interest to the press, investors, employees, customers, and other stakeholders. Patchwork regulation does not always require companies to disclose contributions and expenditures, but spending expected to remain private has become public, sometimes at the cost of reputation and the bottom line.
According to CPA research, in the 2024 election cycle, public companies and their trade associations contributed nearly $200 million to six major 527 political organizations, accounting for almost 40% of total funds raised.
Much of this money flows through hard-to-track third-party groups, including 527s, trade associations, 501(c)(4) organizations, and super PACs. Once money goes into a third-party group, the firm loses control of its donation and may end up supporting campaigns or causes misaligned with its stated values or those of its stakeholders.
“Corporate political spending has been a longstanding issue, with contributions playing a major role in reshaping both state and national politics.”
— Bruce F. Freed, President and Co-founder of the Center for Political Accountability
The primer examines who gives, how companies donate, what firms may receive in return, the regulation and disclosure landscape, and the growing role of investors. It also offers guidance for boards and business leaders on transparency, accountability, risk management, and alignment, including the CPA-Zicklin Framework for Corporate Political Spending.
Download the Corporate Political Activity Primer to understand the risks of corporate political spending and the steps companies and boards can take to promote transparency, accountability, and alignment with corporate values.
What you’ll learn:
- Who gives, how do companies donate, and where does the money go?
- What reputational and business risks can corporate political spending create?
- How can boards strengthen oversight, transparency, and alignment with corporate values?