A Branding Perspective: Why Corporations Oppose Voter Suppression

The rising tide of corporate resistance to new voting suppression laws is gaining momentum every day.  The possible ramifications of this opposition are wide and deep.  Conservatives urge business to stay out of politics, even though many enjoy receiving corporate contributions. Their rationale is a baseless argument that such modifications are essential for eliminating voter fraud, which has been totally disproven. On the other hand, many view these new voter restrictions as an alarming threat to our democracy, similar to the January 6 attack on our capital.

Corporate leaders recognize the trend toward a more multicultural society and believe supporting diversity will attract new customers.  Some even predict this corporate opposition to these new voter laws like in Georgia will become a tipping point for business to take a deeper plunge into social and economic transformations?

Branding is strategic, ideally with an image that reflects the personality of its main customers.  Hence, companies are very sensitive to the changing whims and perceptions of their customers, plus their employees, communities and basically all shareholders today.  The Business Roundtable announced a fundamental, strategic policy change in 2019 saying that the primary mission of business should be focused on helping all shareholders, not just stockholders. However, there has been widespread criticism since that participating corporations are still not doing enough.  Most activists believe they should do more than make statements or pledge money; they should create concrete initiatives that will substantially improve the overall welfare of our society.

While many of the social issues today are still polarizing, most Americans do recognize and cherish their right to vote freely and fairly.  A brand is usually portrayed much like a person, with certain values and an image that is designed to appeal to their stakeholders.  If a company’s basic brand values (e.g. fairness and inclusiveness) are undermined in any way, that brand can be in trouble, even losing customers.

New Challenges For Business Leaders

There is a natural and understandable reluctance by companies to get involved in political issues.  However, most shareholders fear that voter suppression is a violation of their most treasured rights and values.  It is simply a step too extreme.   As human issues become political and business issues, here are some critical questions facing corporate leaders who are concerned about these new laws and their brand reputation:

• Authenticity of Corporate Initiative – what is acceptable and really actionable? Is a pronouncement or pledging money to a cause enough?  Many feel an initiative must be innovative, meaningful and importantly consistent with corporate values to be credible and really make something positive happen.

• Timing of a Proactive Program – While Coca Cola and Delta Airlines finally announced their opposition to the passed voter legislation in Georgia, many asked why they didn’t stand up before when these new laws were being developed and discussed. Surely their lobbyists knew about these proposals early on.  Now that similar voter restrictions are being drafted in Texas, Florida, Iowa and Michigan, will companies do more than just express their concern?   Maybe they should terminate financial support for the politicians supporting such legislation?

• What is the Minimum or Enough? – no one initiative will satisfy everyone, and there will always be loud critics. But some companies might view this voting right issue as their “tipping point” and proactively build on their brand values and promises to solidify their bond with shareholders, perhaps even expand their customer base as our society continues to diversify.

• The Risk of Doing Nothing – many companies will prefer to simply stay silent and not get involved at all. This may work for other social issues but the potential outcry against voter limits may raise the risks of this strategy.  As Martin Luther King said, “in the end we will remember not the words of our enemies, but the silence of our friends.”

The threat of new legislation on voting limits can be a game changer for many companies and their leaders.  There is no one solution that will fit all.  However, with the extensive distrust in Government, this could be a unique opportunity for many companies to proactively reinforce their brand values and appeal to their stakeholders.