Chief executive officers in business and corporations hold a lot of power in decision-making processes. The decisions can either positively or negatively affect the company’s bottom line, employees and overall functionality. However, what happens when the power is used to influence politics and policies that could affect more than just the business?
By definition, a policy, as it relates to government, helps determine how guidelines should be executed. It serves as a guide to unrolling new initiatives and mandates as a response to real-world issues. For CEOs across the business spectrum, their take on policy and politics is often front and center. As the face of the company, chief executive officers are in boardrooms and media rooms and serve as the voice. In this arena, CEOs have the potential to sway opinions and form connections with those who are like-minded.
“I have some people that are in a lot of different positions that I can get on the phone if I need to talk to them and some of them have influence with people that write laws. Some of them are just not aware of the needs of our community,” says Dwan Dandridge, chief executive officer of Black Leaders Detroit. “I’ve been able to establish relationships with them. Leveraging our networks well and educating folks that if I don’t have access to the person that’s going to make the call, maybe I can get access to them through somebody in my network.”
A study released by Harvard Law School shows CEOs of public companies have a large amount of influence over the political spending of their firms. Citing a case that was decided by the highest court, the study outlines the collision of business and politics.
In 2010, a Supreme Court landmark decision was made on the federal case Citizens United, Appellant v. Federal Election Commission. In this case, Citizens United, a non-profit organization, wanted to air a film set against Hillary Clinton and run advertising for the film during broadcasts, in direct violation of an earlier 2002 decision known as the McCain–Feingold Act or BCRA.
Electioneering communication, as defined by Section 203 of the BCRA “as a broadcast, cable, or satellite communication that mentioned a candidate within 60 days of a general election or 30 days of a primary, and prohibited such expenditures by corporations and unions.” This interest in politics and the outcome of the 2008 Democratic primaries reached the Supreme Court which upheld a decision that required public disclosure while allowing businesses to make independent expenditures for electioneering and staking their claim in the election process.
For local nonprofits and for-profit businesses and corporations, CEOs wielding of political influence is coupled with their show of community influence and interest. Often active in their communities through philanthropy and volunteer work, CEOs and their opinions are coveted and revered.
“It kind of comes with the territory but it’s what we do with it. If we’re about our own agenda and not one that’s going to be beneficial to the greater southeastern region and just Michigan overall, then we’ll continue to see more of the same,” says Dandridge.
In recent years, social justice reform has become a hot button issue. From protests against police brutality and excessive force to inclusion and diversity, companies have spoken out against racism and social injustice. Businesses also began to devote time, energy and millions in collective financial backing to ramp up diversity efforts in-house. By doing this, companies both small and large, are staking an interest in the policies that govern the people.
With influence comes great responsibility. As in many positions of power, authority can be intoxicating. Although it is impossible to please all, CEOs have a level of autonomy and are sometimes left to run free.
“More of us should welcome people keeping an eye on us. Keeping us to task. I think that’s one of the things that’s often missing. When you find yourself a CEO or running an organization, some of those checks and balances just aren’t there,” says Dandridge
Despite where businesses and CEOs stand currently, a new breed of CEOs are coming up the ranks and watching the actions of today’s business leaders.
“I think we have a lot of undiscovered CEOs in a lot of these neighborhoods in Detroit and if we aren’t intentional on finding and creating space for them, we’re all going to suffer because of it,” says Dandridge
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