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Values Proposition

Supporting democracy becomes the measure of leadership

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The aftershocks of the Jan. 6 insurrection to block Congressional certification of the U.S. Presidential election will reverberate for many years. In the short run, there may be additional efforts to violently disrupt President-elect Biden’s inauguration Jan. 20, in addition to domestic terrorism activities aimed at state and local governments and other institutions. Such concerns have re-focused public expectations that leadership across all major institutions, public and private, must take sustained actions to support democracy.

The Jan. 6 insurrection has transformed the nation’s political conversation and moved the support for democratic values to the top tier of advocacy. It has subsumed and reset the context for other key national priorities such as responding to the pandemic, climate change, economic renewal and social justice.

At the very core of democracy are the values of transparency, due process and good governance, respect for human rights and the ability to participate freely in the political system.

At the very core of democracy are the values of transparency, due process and good governance, respect for human rights and the ability to participate freely in the political system. Not coincidentally, these same values enable enactment of core elements of the sustainability agenda for environmental protection, economic development and social responsibility. The accelerating debate over how best to protect and strengthen democracy bears close watching as a major barometer for the success of policies to advance sustainability.

Political donations that undermine democracy

Companies that make political donations, and institutions and individuals that receive them, are presently engaged in a frantic scramble to identify whether these funds are connected to groups associated with white nationalism, violence and sedition, or disruption of the election process.

Numerous embarrassing examples already have emerged from leading U.S. institutions. They include:

  • Comcast, JP Morgan Chase, Microsoft and PepsiCo made contributions to the Rule of Law Defense Fund (RLDF), the fundraising arm of the Republican Attorneys General Association (RAGA), which raised about $18 million in 2020. The RLDF actively participated in attempting to prevent the certification of the U.S. Presidential election, including the use of robocalls encouraging people across the country to assemble in Washington, D.C., on Jan. 6 to march on the Capitol. The RAGA executive director subsequently has resigned.
  • A large number of U.S. corporations provided political donations to two-thirds of the Republican caucus in the House of Representations that sought to block certification of the Presidential election.
  • Individual companies are belatedly recognizing that individuals on the rapidly expanding "sedition" list prepared by law enforcement authorities received their donations.
  • Carnegie Mellon University, which for many years has accepted funds from the Richard Mellon Scaife Foundation (a major funding source for many anti-environmental and right-wing political causes), established a fellow position at its Institute for Politics and Strategy for Richard Grenell, a senior Trump Administration official, who aggressively and publicly lobbied to overturn the U.S. election results.

Good governance in donation practices

In the midst of this political firestorm, a growing number of organizations, chiefly corporations, are examining whether their donations support anti-democratic politicians. Their practices include:

  • Suspending immediately all corporate and employee contributions to any member of Congress who voted in objection to the certification of the Presidential election. Leading companies such as healthcare provider Blue Cross/Blue Shield, Commerce Bank, Dow Chemical and Marriott International have publicly announced this decision. Dow has further committed to suspending its political donations for the next election cycle (two years for a member of the House, six years for a senator).
  • Reviewing the bylaws and governing policies of political action committees (the unit within a company that is legally authorized to collect and distribute political donations) to evaluate their consistency with a firm’s values and determine the criteria under which currently suspended political contributions can be reinstated or permanently revoked. This outcome will depend, in part, upon whether suspended political recipients re-affirm or reverse their position on electoral certification.
  • Determining whether any recipients of political donations are identified on a law enforcement "seditionist list" subject to potential criminal or other penalties. To their chagrin, some American-based companies have determined a match between their donation recipients (as compiled by the U.S. Federal Election Commission that tracks political contributions) and individuals placed on the federal government’s sedition list.

In the short run, these decisions will financially disadvantage Republican elected officials, as 139 members of Congress and eight senators from their party voted against certifying the presidential election results — even after the insurrection had occurred.

Beyond these financial decisions are public statements by a limited number of business leaders who have called for the resignation of President Donald Trump. Most prominent has been Jay Timmons, president of the National Association of Manufacturers. The insurrection “was a clear and present danger to our democracy … and we couldn’t stand for that,” he said. No other prominent business association has echoed Timmons’ declaration.

Longer-term reforms

Conventional behavior for financing the U.S. political system will await the inauguration of Joe Biden as the 46th president and assume that momentous policy debates in the U.S. Congress over curbing the COVID-19 pandemic, reviving the economy, investing in infrastructure that decarbonizes the economy?and reforming immigration practices will slide the public’s current focus on political donations to the periphery.

Several initiatives to manage the advocacy process can be implemented to raise the bar in support of democracy. They include:

  • Redefining the criteria for advocacy donations so they are aligned with a company’s central values and promote pro-democratic policy objectives. Such criteria should be approved by the board of directors and should apply to both direct company contributions and allocations provided through a foundation.
  • Expanding the transparency of political donations so they are approved through the corporate governance process and are included as part of the annual financial audit. The list of external recipients should be made accessible through a public website.
  • Identifying and publicizing universities, think tanks and individuals that receive funding to generate studies, organize seminars or establish fellowships to research and publish on issues related to democracy, labor, regulatory or sustainability issues.
  • Integrating the pro-climate change and sustainability efforts of asset managers, investors and non-governmental organizations directly with pro-democracy advocacy. Organizations such as Climate Action 100+ are well-positioned to add support of democracy to their current suite of environment, social and governance (ESG) priorities.
  • Mobilizing a coalition of lawyers, thought leaders and political representatives to overturn the Supreme Court’s Citizens United decision. This 2010 edict opened the floodgates for a dramatic expansion of money to influence political campaigns and regulatory policy decisions by prohibiting government from restricting independent expenditures for political communication and enabling donors to shield their identities. The adverse consequences of this decision continue through the ever-increasing amount of contributions to candidates and causes, much of it unaccounted for, anti-environmental and anti-democratic.

Offsetting the discouraging news of political insurrection and the corruption of democracy is the hopeful indicator of expanded voter participation. Most Americans have a growing recognition of the fragile state of their country and are committed to a course of peaceful collaboration to address a growing list of problems. This is reflected in higher rates of voter participation in both the 2018 mid-term and 2020 Presidential elections.

While encouraging, two election cycles do not represent a longer-term trend. Expanding pro-democracy advocacy can provide a rising tide for a number of economic, environmental and social justice proposals that lead to a more equitable and just society. Such is the means to grow a continuing pro-democracy majority while marginalizing extremist points of view.

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