A recent BusinessWeek article delves into how your company may be losing business because of its political stance and donations. A certain class of customer is emerging whose
product choices are driven not by low price or customer service, but by politics.
… millions of Americans … choose — or avoid — certain companies because of the political donations of their management or the controversial causes they support.
Politics will always rile people up and engender a heated debate. When your company is already fighting to win over customers, why add any reason for them not to buy your product?
Your company can get pegged for two types of political associations: company donations and employee activities. A rich and outspoken CEO’s personal position can easily be reflected upon the company to its gain or detriment. In addition, your company’s donations to political parties or activist groups can also alienate customers.
Choose wisely the causes, organizations, and individuals your company officially supports. The benefit of any donations may be offset in the loss of conscientious customers. Tread carefully.
Keep up-to-date with the latest Return Customer articles:
Subscribe to our RSS Feed
Sign up for email updates
Mark
May 11, 2006
On the other hand, if a business depends heavily on political lobbying on the local, state and federal level — as most do to some degree — the lack of politcal involvement and contributions to those supporting your cause can be equally as detrimental as the loss of conscientious customers.
As you say, tread carefully. It’s a delicate balance that business people have to strike.
Joe Rawlinson
May 12, 2006
Good point Mark. Unfortunately, our government often needs a push via lobbyists or other financial incentives to get things done the way one would like them. This slippery slope of political wrangling is a necessary evil for some industries.