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Political Associations Endanger Business

May 11, 2006 By Joe Rawlinson

A recent BusinessWeek article delves into how your company may be losing business because of its political stance and donations. A certain class of customer is emerging whose

product choices are driven not by low price or customer service, but by politics.

… millions of Americans … choose — or avoid — certain companies because of the political donations of their management or the controversial causes they support.

Politics will always rile people up and engender a heated debate. When your company is already fighting to win over customers, why add any reason for them not to buy your product?

Your company can get pegged for two types of political associations: company donations and employee activities. A rich and outspoken CEO’s personal position can easily be reflected upon the company to its gain or detriment. In addition, your company’s donations to political parties or activist groups can also alienate customers.

Choose wisely the causes, organizations, and individuals your company officially supports. The benefit of any donations may be offset in the loss of conscientious customers. Tread carefully.

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