Corporate Political Speech is Bad for Shareholders
The US Supreme court recently struck down limits on companies’ freedom to spend money on political elections, fueling fears that shareholders’ interests will trump those of other groups, such as consumers and employees. But corporate political spending can also be detrimental to shareholders' interests by weakening rules governing corporate governance and investor protection.
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CAMBRIDGE – The United States Supreme court recently struck down limits on the freedom of companies to spend money on political elections. Large, publicly traded companies in other countries also often face lax limits on their use of corporate resources to influence political outcomes, fueling fears that the interests of shareholders will trump those of other groups, such as consumers and employees. But corporate spending on politics can also hurt the interests of shareholders.