Corporate Power

Businesses Can Wield Power for Social Benefit

Among the innumerable issues raised by the violence at the US Capitol on January 6 is the question of how businesses can wield their power in this historical moment. Prior to January 6, withdrawal of financial or political support for the current administration would have been viewed as unequivocally political, given the inextricable ties between the president and his political party. 

In the aftermath, with the former president’s rhetoric being increasingly viewed as seditious rather than partisan, the calculus about whether to continue supporting him and the politicians who continue to support efforts to disenfranchise voters has become less about politics and more about conscience. Many in the business community have taken the opportunity to separate themselves from the former president, and a number of companies have gone a step further by withdrawing funding from legislators who opposed the certification of electoral college results.

Vice President Mike Pence and Speaker of the House of Representatives Nancy Pelosi preside over the certification of the 2020 electoral votes on January 6, 2021. Image Source: https://whyy.org/articles/casey-fitzpatrick-condemn-violent-insurrection-as-congress-moves-toward-certifying-biden/

Withdrawal of financial support from a group of politicians, even as their policy agenda has been decidedly beneficial for corporate interests, is an example of for-benefit leadership by the business community. While fair questions exist about the motivations and timing of these moves, these questions do not detract from the importance of this move in this particular moment. 

The move to withdraw funding showcases the business community’s enormous ability to leverage their power for social benefit. In a world structured around the flow of capital, individuals and businesses who control that flow inevitably wield outsized political power. What if companies used their influence to push legislators in the direction of sweeping climate policy, racial equity initiatives, and quality healthcare? 

The cynical view has always been that businesses are too concerned with their bottom-lines to take these bold steps. But the move to abandon strongly pro-corporate politicians (even temporarily) demonstrates the capacity within the business community to utilize capital for social benefit, even when it may conflict with self-interest. It is now up to businesses, activists, and legislators to find creative ways to leverage capital into socially and economically beneficial outcomes.