CEOs Take Sides in the Election: A Double-Edged Sword

Strategic Insights -

In this fall's election, several prominent CEOs are publicly backing either President Bush or Senator Kerry. Bill Gates of Microsoft and Steve Jobs of Apple have been vocal about their support for the respective candidates, highlighting the growing phenomenon of CEOs taking sides in the electoral process. While some CEOs believe that supporting a candidate can bring business advantages, others argue that it can also lead to alienating customers and creating a public backlash. Meanwhile, changes to campaign finance laws have made it easier for CEOs to get involved in politics, but also increase the pressure to make a public endorsement.

Key Takeaways:

  • CEOs such as Bill Gates, Steve Jobs, and Warren Buffett are openly supporting either President Bush or Senator Kerry, making headlines in the news.
  • Gregory Slayton, a former CEO of ClickAction, believes that CEOs should be involved in electing representatives who share their business interests and values.
  • Supporting a candidate can bring business advantages, as argued by Steve Kirsch, chair and founder of Propel Software, who believes that his support for Senator Kerry will make him friends among Democrats in Congress.
  • However, taking a public stance can also alienate customers, as pointed out by Eric Dezenhall, head of a crisis management firm and former press aide in the Reagan White House.
  • Many business groups believe that most executives are shy about going public with their political leanings, and Dezenhall thinks they should be.
  • Rick White, a former Republican congressman from Seattle and head of TechNet, a bipartisan lobbying group for the technology industry, argues that CEOs used to be more private about their politics, but now it's understood as part of the job to engage with public officials.

Statistics:

  • 15-20 years ago, CEOs might not have been as involved in public policy, but now it's considered part of the job.
  • Campaign finance laws prevent corporations from giving soft money to political parties, increasing the pressure for CEOs to make public endorsements.
  • CEOs such as Bill Gates and Steve Jobs have been vocal about their support for the respective candidates, making headlines in the news.

Sources:

  • IdRef=1 Steve Inskeep, NPR
  • IdRef=2 Laura Sydell, NPR
  • IdRef=3 Gregory Slayton
  • IdRef=4 Steve Kirsch
  • IdRef=5 Eric Dezenhall
  • IdRef=6 Rick White, TechNet
  • NPR News