The risks of corporate political spending after the Jan. 6 insurrection | Column - Tampa Bay Times | Canada News Media
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The risks of corporate political spending after the Jan. 6 insurrection | Column – Tampa Bay Times

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Ever since the 2010 Supreme Court case Citizens United v. FEC, corporations have had the ability to spend money in politics. Now after the Jan. 6 insurrection, many corporate political spenders are feeling the sting of getting into bed with the wrong politicians. These corporations are learning something that I have been writing about for years — dabbling in politics comes with huge reputational risks.

Ciara Torres-Spelliscy [ File photo ]

This year is not the first time that electoral votes have had congressional objections. Back in 2004, there were limited objections to Ohio’s electoral college votes. In 2004 the objection was from Ohio Rep. Stephanie Tubbs Jones and California Sen. Barbara Boxer. Rep. Tubbs Jones was joined by several members of the Congressional Black Caucus, who raised the objection to draw attention to the long lines and other voting difficulties experienced by Black voters in Ohio. The objection was resolved after a few hours. A big difference from 2021 was that the 2004 objection was not accompanied by violence in the halls of Congress.

The Capitol riot presents unique risks for corporate financial supporters for members of Congress who backed President Donald Trump’s position on Jan. 6.

Independent journalist Judd Legum’s Popular Information was the first to ask corporate PACs whether they would continue their financial support for members of Congress who objected in 2021 to the Electoral College votes in swing states on Jan. 6. In 2021 multiple swing states were subject to objections (instead of just one state), and this time more than a hundred House Republicans and a dozen Republican senators originally objected. This meant corporate donors to far more members of Congress were under scrutiny for supporting what some are now calling the sedition caucus.

Popular Information broke the news on Jan. 11 that three major corporations — Marriott, BlueCross BlueShield and Commerce Bank — suspended PAC donations to the 147 Republicans who objected to the Electoral College vote. A day later they reported that dozens of corporations would also suspend political support.

A month after the insurrection, the New York Times Deal Book highlighted that Morgan Stanley, Microsoft, BlackRock, Coca-Cola and Hilton all paused donations to the 147 objecting Republicans in Congress including House Minority Leader Kevin McCarthy.

A new survey by the Conference Board provides a new data both on how broadly corporations have pulled back from on political spending. The survey of 84 companies found that “about 28 percent of companies have announced their PAC’s actions both internally and externally, while another 25 percent have announced their PAC’s decision but only internally.” This indicates the firms that have been captured by Popular Information and the New York Times likely understates how many corporations have changed their political spending behavior since the changes haven’t all been public. Moreover, the Conference Board survey indicated that “concerns about company reputation was a key factor (nearly 45 percent) in driving the organization’s response (to Jan. 6).”

As I explained in my book Political Brands and in a law review article entitled “Shooting Your Brand in the Foot,” corporate political spending comes with many reputational risks including associating a well-crafted corporate brand with a toxic politician. If a politician that a corporation has supported gets into an embarrassing scandal or legal trouble, the corporation can be harmed through guilt by association. This can lead to boycotts and other shunning.

Also if the political spending is being done transparently through a corporate PAC, then there’s another lesson to hard learn: Records of political spending online last forever. Even if firms stop giving to Sens. Josh Hawley or Ted Cruz today, all their past political support is easy to find on sources like www.followthemoney.org or www.opensecrets.org. For forever and a day, the public, including a firm’s shareholders and customers, can find which corporate PACs supported Donald Trump or his congressional enablers.

Investigations into the Jan. 6 events are on-going. The FBI continues to arrest individuals who participated in the riot from the outside. New reporting notes that the Capitol Police are investing 35 officers of their own organization for their actions that day. Then there is a police investigation. about exactly which members of Congress may have given tours of the Capitol on Jan. 5 to aid and abet the future rioters. So what is now a political nightmare could get even worse if any members of Congress that were supported by a corporation gets into criminal trouble too related to the insurrection. The downside for the donor corporations can be enormous and long lasting.

Ciara Torres-Spelliscy is a professor of law at Stetson University College of Law, a Brennan Center Fellow and the author of “Political Brands.”

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Youri Chassin quits CAQ to sit as Independent, second member to leave this month

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Quebec legislature member Youri Chassin has announced he’s leaving the Coalition Avenir Québec government to sit as an Independent.

He announced the decision shortly after writing an open letter criticizing Premier François Legault’s government for abandoning its principles of smaller government.

In the letter published in Le Journal de Montréal and Le Journal de Québec, Chassin accused the party of falling back on what he called the old formula of throwing money at problems instead of looking to do things differently.

Chassin says public services are more fragile than ever, despite rising spending that pushed the province to a record $11-billion deficit projected in the last budget.

He is the second CAQ member to leave the party in a little more than one week, after economy and energy minister Pierre Fitzgibbon announced Sept. 4 he would leave because he lost motivation to do his job.

Chassin says he has no intention of joining another party and will instead sit as an Independent until the end of his term.

He has represented the Saint-Jérôme riding since the CAQ rose to power in 2018, but has not served in cabinet.

This report by The Canadian Press was first published Sept. 12, 2024.

The Canadian Press. All rights reserved.

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‘I’m not going to listen to you’: Singh responds to Poilievre’s vote challenge

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MONTREAL – NDP Leader Jagmeet Singh says he will not be taking advice from Pierre Poilievre after the Conservative leader challenged him to bring down government.

“I say directly to Pierre Poilievre: I’m not going to listen to you,” said Singh on Wednesday, accusing Poilievre of wanting to take away dental-care coverage from Canadians, among other things.

“I’m not going to listen to your advice. You want to destroy people’s lives, I want to build up a brighter future.”

Earlier in the day, Poilievre challenged Singh to commit to voting non-confidence in the government, saying his party will force a vote in the House of Commons “at the earliest possibly opportunity.”

“I’m asking Jagmeet Singh and the NDP to commit unequivocally before Monday’s byelections: will they vote non-confidence to bring down the costly coalition and trigger a carbon tax election, or will Jagmeet Singh sell out Canadians again?” Poilievre said.

“It’s put up or shut up time for the NDP.”

While Singh rejected the idea he would ever listen to Poilievre, he did not say how the NDP would vote on a non-confidence motion.

“I’ve said on any vote, we’re going to look at the vote and we’ll make our decision. I’m not going to say our decision ahead of time,” he said.

Singh’s top adviser said on Tuesday the NDP leader is not particularly eager to trigger an election, even as the Conservatives challenge him to do just that.

Anne McGrath, Singh’s principal secretary, says there will be more volatility in Parliament and the odds of an early election have risen.

“I don’t think he is anxious to launch one, or chomping at the bit to have one, but it can happen,” she said in an interview.

New Democrat MPs are in a second day of meetings in Montreal as they nail down a plan for how to navigate the minority Parliament this fall.

The caucus retreat comes one week after Singh announced the party has left the supply-and-confidence agreement with the governing Liberals.

It’s also taking place in the very city where New Democrats are hoping to pick up a seat on Monday, when voters go to the polls in Montreal’s LaSalle—Émard—Verdun. A second byelection is being held that day in the Winnipeg riding of Elmwood—Transcona, where the NDP is hoping to hold onto a seat the Conservatives are also vying for.

While New Democrats are seeking to distance themselves from the Liberals, they don’t appear ready to trigger a general election.

Singh signalled on Tuesday that he will have more to say Wednesday about the party’s strategy for the upcoming sitting.

He is hoping to convince Canadians that his party can defeat the federal Conservatives, who have been riding high in the polls over the last year.

Singh has attacked Poilievre as someone who would bring back Harper-style cuts to programs that Canadians rely on, including the national dental-care program that was part of the supply-and-confidence agreement.

The Canadian Press has asked Poilievre’s office whether the Conservative leader intends to keep the program in place, if he forms government after the next election.

With the return of Parliament just days away, the NDP is also keeping in mind how other parties will look to capitalize on the new makeup of the House of Commons.

The Bloc Québécois has already indicated that it’s written up a list of demands for the Liberals in exchange for support on votes.

The next federal election must take place by October 2025 at the latest.

This report by The Canadian Press was first published Sept. 11, 2024.

The Canadian Press. All rights reserved.

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Social media comments blocked: Montreal mayor says she won’t accept vulgar slurs

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Montreal Mayor Valérie Plante is defending her decision to turn off comments on her social media accounts — with an announcement on social media.

She posted screenshots to X this morning of vulgar names she’s been called on the platform, and says comments on her posts for months have been dominated by insults, to the point that she decided to block them.

Montreal’s Opposition leader and the Canadian Civil Liberties Association have criticized Plante for limiting freedom of expression by restricting comments on her X and Instagram accounts.

They say elected officials who use social media should be willing to hear from constituents on those platforms.

However, Plante says some people may believe there is a fundamental right to call someone offensive names and to normalize violence online, but she disagrees.

Her statement on X is closed to comments.

This report by The Canadian Press was first published Sept. 11, 2024.

The Canadian Press. All rights reserved.

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