Reference no: EM133483203
Problem
Learning Objectives:
A. Introduce the concept of corporate political activity, including the basics of contemporary campaign finance regulations and lobbying as it relates to business in the United States.
B. Evaluate the risks and challenges that arise when corporations make political contributions and/or take a public stand on controversial topics, even when these are consistent with their corporate policies.
C. Formulate strategies for when and how to weigh in on controversial issues publicly, especially when consumers, shareholders, and employees hold conflicting views.
D. Devise strategies for responding to the challenges that arise from engaging on controversial issues, such as boycotts.
E. Think more broadly about the role of business in society and the challenge of avoiding any engagement in politics and legislation.
Case Questions:
A. How would you assess Target's lobbying on federal sales tax legislation from legal, ethical, and economic perspectives?
B. Should we understand Target's contribution to MN Forward in 2010 as another form of lobbying, or is it different? Why or why not?
C. For those of you who have experience with political and legislative systems outside the US, are there different underlying conceptions of the role of business in politics or are the conceptions the same, but they are implemented in different ways from what we've discussed so far and/or what is outlined in the case?
D. As Brian Cornell, CEO of Target, what steps should you take given the boycott and declining sales?
E. Looking ahead, what standards or guidelines will you develop to deal with the challenges raised by the engagement of business with public issues and institutions?
Required Reading:
1) CASE: Making Target the Target: Boycotts and Corporate Political Activity. HBS.
2) HBR: Lund & Strine. 2022. Corporate Political Spending Is Bad Business.
3) HBR.org: Bessen. 2016. Lobbyists Are Behind the Rise in Corporate Profits.
4) JOM: Hillman, et al. 2004. Corporate Political Activity Review and Research Agenda. (Skim this, focusing on conceptual definitions)