The backlash against Georgia’s recently-passed restrictions on voting, especially by voters that are more likely to support Democratic candidates, continues to build. Several Georgia-based corporations, including Delta Air Lines (which is the state’s largest employer) and Coca-Cola, have gone from carefully parsed statements of displeasure about the new legislation to stronger public comments from the companies’ CEOs on national media. Major League Baseball – rather surprisingly, in my opinion – decided to move this year’s All Star Game and Amateur Draft from Atlanta to Denver due to the controversy.
In yesterday’s Morning Brief from Yahoo! Finance, editor-in-chief Andy Serwer suggests the fallout from the ongoing situation is “changing the relationship between politics (mostly the GOP) and business.”
Used to be that if you ran a business in America you’d stay as far away as possible from politics, (unless you sold George McGovern T-shirts or some such.) The math was simple. Take a stand and potentially lose 40% to 60% of your customers. So most businesspeople when asked a question about politics kept mum, even when they felt strongly about an issue.
We accepted this choice of money over principles because as customers, employees or shareholders while we might not agree with someone’s politics, we just wanted the business relationship and knowing someone’s politics might make things awkward, inconvenient or uncomfortable.
Serwer quotes Dick Parsons, who is the former CEO of Citigroup, Time Warner, and was also briefly the chairman of the board of CBS. Parsons is African-American and a “lifelong Republican,” he said. He was one of 72 Black executives who signed a letter protesting Georgia’s new law.
My party has sort of said, ‘Well, look, we got one or two choices, we can either battle for those votes going forward or we can just try and preclude them from showing up again. And I think the direction that has been taken, certainly in Georgia and in other states is, ‘let’s not go out and battle for those votes. Let’s just try and keep them from showing up.’ That’s just flat wrong.Dick Parsons
Companies like Delta and Coke have faced boycotts from both sides of the political spectrum: from the left for not speaking out soon enough or more forcefully; and from the right for now being too “woke.” Faced with that type of pressure, the traditional relationship of American businesses to the Republican Party is looking like it needs some counseling.
Senate Minority Leader (few things give me more pleasure than writing that phrase, even though because of the filibuster he still has tremendous power over what can and can’t get passed in Congress) Mitch McConnell made it clear that he doesn’t believe corporations should be playing politics:
Corporations will invite serious consequences if they become a vehicle for far-left mobs to hijack our country from outside the constitutional order. Businesses must not use economic blackmail to spread disinformation and push bad ideas that citizens reject at the ballot box…. My warning, if you will, to corporate America is to stay out of politics.Sen. Mitch McConnell (R-KY)
Of course, that doesn’t include corporate free speech in the form of massive contributions to Republican campaigns, which McConnell is explicitly in favor of. “Give us the money and keep your mouth shut” is the real message here, which is not unlike getting mugged in broad daylight.
Adam Serwer (no relation to Andy Serwer), senior editor at The Atlantic, also wrote on the topic recently with a warning not to buy this “rebellion” against corporations by the GOP.
Republicans cannot imagine labor relations as exploitative except in that someone might have to sit through a tedious video on race or gender sensitivity in the workplace. They do not perceive the concentration of corporate power as perilous unless companies’ desire to retain their customer base interferes with Republican schemes to entrench their own political dominance. They see freedom of speech as vital, unless it prevents them from using the state to sanction forms of political expression they oppose. Their criticisms of “woke capital” go no deeper than this.
As such, the Republican anti-corporate turn is entirely superficial. That’s a shame, because the concentration of corporate power has had a negative effect on American governance, leading to an age of inequality in which economic gains are mostly enjoyed by those in the highest income brackets. Since the 1970s, despite massive gains in productivity, most Americans have seen their wages rise very slowly, while the wealthiest have reaped almost all the gains of economic growth. That outcome was a policy choice, not an inevitability.
I suspect that this posturing by both corporations and the GOP leadership will ultimately not change very much. But it’s possible if politicians like McConnell overplay this, assuming that there’s no where else for American business to go but back into their loving arms, they could be in for a surprise. The Democrats could make a play to be more friendly to business, provided improved respect and rights for American workers was part of the deal. Again, not likely, but not impossible. The Democrats would also have to overcome the antipathy of the left-wing of the party toward big business, which wouldn’t be easy at all. But an opportunity exists.