BUSINESS IN POLITICS: Out of the Background onto the Stump

GET into politics,” the U.S. Chamber of Commerce told its members a fortnight ago—its first appeal for businessmen to work directly in political organizations. Chamber President William A. McDonnell advised them just how: “We must roll up our sleeves and get to work at the precinct and ward levels where political decisions are made and officeholders chosen.” McDonnell’s words underlined a significant change in business thinking about politics. In the past, many a businessman and corporation has played a part in making political decisions and choosing officeholders. But the influence has more often been exerted behind the scenes than out front on political platforms. Now more and more corporations are going to work at the precinct level, as well as speaking out boldly on issues and candidates.

Giant Gulf Oil Corp. announced that it will analyze the speeches, voting and attendance records of “Congressmen; then Gulf management will report its findings to its 161,000 shareholders, employees and dealers. If the program proves a success, Standard Oil Co. (Ohio), among other companies, will copy it. Top executives from U.S. business are now forming conservative but nonpartisan Americans for Constitutional Action to endorse pro-business candidates. Headed by Admiral Ben Moreell, who retires this week as chairman of Jones & Laughlin Steel Corp., ACA counts among its trustees Armstrong Cork Co. Chairman Henning W. Prentis Jr.; former Sears, Roebuck & Co. Chairman General Robert Wood; McGraw-Edison Co. Chairman (and former New Jersey Democratic Governor) Charles Edison. In Los Angeles County, Republicans have recruited 120 companies to send in names of young executives who want to work for the party; the G.O.P. teaches them practical politics, gives them precinct assignments. –

Many businessmen still cling to the timeworn arguments that a company has no business openly endorsing any policy or party, because it may offend customers or the opposing political party. “At one time or another,” says United States Steel Corp., “you have to do business with both parties.” American Welding & Mfg. Co. President William J. Sampson Jr. says that the truth is simply: “We’re all yellow. We businessmen should stand up for what we believe in. But whenever it’s controversial, we back away.”

Are these management fears justified? The political realists in unions do not think so. They are well aware that companies are deep in politics, through lobbying and individual contributions to candidates. Union leaders admit that companies have every right to comment openly, take basic issues right to the people just as unions themselves have done for years. Says Co-Director Jim McDevitt of the A.F.L.-C.I.O. Committee on Political Education: “There’s nothing wrong if a company tries to get its executives to promote its candidates—providing there’s no coercion, and a man’s job is not put in jeopardy.”

Companies that have spoken out strongly on explosive issues directly involving unions have found that fear of union reprisal is exaggerated. In Washington, Boeing Airplane Co. President William M. Allen has become one of the state’s strongest champions of a right-to-work bill. Allen sparked a campaign that rolled up 120,000 signatures to put the right-to-work issue on the November ballot, and now executives are buttonholing voters. Unions howled, but 80% of Allen’s own employees said in a company poll that they wanted Boeing to continue to express itself on controversial political issues.

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Though the Corrupt Practices Act forbids a corporation to give cash to any candidate or party in an election for federal office (a ban that dates back to 1907, when huge corporate contributions to presidential elections were revealed), it does allow a corporation to publish or broadcast its political views, and to pay salaries of its officers while they engage in political activities.

More and more corporations find it wise to encourage executives and employees to plunge into after-hours politics. The theory is that if everybody became politically savvy, the whole country would benefit and so would business. Last month Aerojet-General Corp. urged every worker to donate at least $2 to his favorite party for the November elections. President Dan Kimball, former Navy Secretary, kicked in $500 for the Democrats; Vice President Arthur H. Rude gave $500 for the Republicans, and Aerojet has collected $18,500 so far. Ford Motor Co. sends lists of volunteer campaign workers to the chairmen of both major parties. The best way to raise the standard of candidates was summed up by Vice President E. S. Hartwick of Carnation Co.: “Businessmen, whether Democrats or Republicans, can do it by helping to raise funds for better candidates, or by getting into politics themselves.”