The Conference Board interviewed almost 100 corporate executives from large U.S. and multi-national corporations to get their views on what political, legal, and regulatory issues are most challenging as we approach the 2024 election. The report was produced in collaboration with Steptoe, here. The data in the report can help benchmark how your organization is responding to today's political environment and assist with planning future political strategy.
The report found that the majority of respondents felt that the political environment today is more challenging than in 2020, a period rife with issues related to the pandemic and social justice. The top factors fueling this difficult environment are polarization among policymakers (according to 71% of survey respondents) and the electorate (60%).
Employees are also a major source of pressure, with 48% of respondents indicating that increasing employee demands on social and political matters is exacerbating the situation. "In today's highly polarized environment that's rife with misinformation, companies need to serve as trusted sources—especially for employees. Organizations can consider efforts that go beyond encouraging employees to vote; a more comprehensive initiative can include educating them about the democratic process, the implications of public policy decisions, and the impact of their own participation in the political process," said Merel Spierings, Senior Researcher at The Conference Board and report author.
Most companies responded that today's legal and regulatory environment is becoming more difficult to navigate as well. 55% of companies consider the legal and regulatory environment more challenging than in 2020. The top factor fueling today's environment is increasing state/local regulations (70%). Other leading factors are increasing federal regulation (64%) and uncertainty about regulations and enforcement (53%).
The upcoming election only makes it harder for government affairs teams to determine an effective lobbying strategy. 65% of companies say the outcome of the federal elections will impact their lobbying efforts. 47% say the same about the outcome of the state/local elections.
It is important to plan different scenarios as a strategic tool to navigate the evolving and unpredictable regulatory environment. Proactively designing, analyzing, and preparing for various electoral outcomes can enable companies to anticipate potential regulatory shifts, identify risks and opportunities, and adjust their strategies accordingly.
Partner Adie Olson was a valued contributor to the report. Read the entire report for even more insights into the challenges facing corporations in a polarized political environment here. Contact Steptoe's political law team for questions on your political compliance needs.
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