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July 10, 2024 ABA Task Force for American Democracy

Corporate Underwriters and the Democracy Gap

Center for Political Accountability, December 21, 2023

Summary

Despite many corporations publicly stating their support for democracy, their political donations often undermine democratic institutions. This report examines corporate donations to the Republican State Leadership Committee, an organization that has received substantial corporate political donations and undertaken many initiatives that the authors claim undermine democracy. The authors then provide recommendations for corporations to improve the accountability and transparency of their political donations

Key Findings/Messages

Between 2010 and 2023, the Republican State Leadership Committee (RSLC) received more than $340 million in donations. Approximately 55% of those donations came from public corporations and their trade associations. The RSLC has used that money to openly attempt to stack elections and undermine democracy across the country. For example, the RSLC’s Redistricting Majority Project (REDMAP) initiative has focused resources on gaining control of critical state legislature seats in an effort to control the redistricting process and create conservatively gerrymandered districts. Nevertheless, many major RSLC donors like Citigroup, AT&T, Chevron, Eli Lilly, Altria, and Comcast have made public statements supporting democracy, even as they fund these undemocratic efforts.

Key Recommendations Made

Corporations should manage the risks of political spending by strengthening and updating corporate political spending policies. Furthermore, corporations should recognize they are accountable for their political spending, and they should communicate openly and honestly about their political activities. The authors recommend that corporations adopt the CPA-Zicklin Model Code which provides an ethical framework for engaging in political spending.