U.S. Public Company Communications in an Election Season
The U.S. presidential election rolls around every four years as Democrats and Republicans make the case for why their candidate is the right one to lead the country into the future. The election process and the bumper-sticker slogans are like clockwork, which we are seeing firsthand in commercials, stump speeches and online ads: “We will create jobs! We will lower taxes for the middle class! We will support small businesses!”
With all the twists and turns of an election, corporations – especially public companies – are often caught in the middle of the political fight, both at a local and national level. Investors and analysts start paying close attention to a company’s election-related communications after Labor Day (i.e., now), adding another challenge when announcing third (calendar) quarter results.
Before thinking through your election-season IR messaging strategy, try to keep in mind some inalienable truths:
· It is not helpful to fall into the trap of aligning with one party’s vision. Paying lower taxes, having reasonable levels of regulation, striving to attract a skilled workforce and being pro-environment do not have to be synonymous with any single party. In fact, the parties have more in common at the business level than many think.
· Be willing to engage investors on the potential policies that will benefit you, as well as how your company is insulated from the negative impact of others.
· Along those lines, be sure to underscore your success throughout a variety of past administrations and different majorities in Congress.
· Additionally, remember all the constituencies you could alienate in the process of “picking sides,” particularly in today’s hyperbolic political climate. More on that below.
The ultimate outcome of your IR communications should be one clear perception: your company is agnostic to the political party in power and can succeed regardless of who wins the White House and who leads on Capitol Hill. That message needs to be reinforced continuously until investors, analysts and other key stakeholders are on board.
Multi-Stakeholder Election Communications
Every public company has a myriad of stakeholders to consider when communicating during an election season. Key audiences include employees, customers, regulators, suppliers and other partners – all of whom will be trying to evaluate the company’s political views as well as the election’s ramifications on the business. Consider taking these steps to better prepare your corporate communications, government relations and internal communications strategies during an election season:
1. Scenario Plan for Potential Policy Shifts
Management teams must make it clear they are prepared for the policy changes that a new administration could bring with it, including tax policy, regulations, infrastructure or foreign policy. A good example of how new policy can sneak up on companies is the passing of the Inflation Reduction Act (IRA) near the beginning of the Biden Administration, which investors and analysts were quick to grill companies about.
Developing an expansive scenario planning document – both from an operational and communications perspective – will ensure you are not caught off guard by investors, customers and reporters post-election. In addition, implementing a robust political and policy monitoring mechanism will further protect you from unforeseen legislation.
2. Understand How Your Internal Communications Strategy Ties In
Singing from the same hymn sheet to all stakeholders remains critical. During former President Donald Trump’s term, many employers were called upon by their employees to take on a very different role than what they were used to, often leading to executives making statements on current events. That dynamic has evolved over the past four years, with comments focused on geopolitical issues typically centered on their impact on the business, meaning companies need to consider employee sentiment and election-related activism as part of their preparation and scenario planning.
3. Consider How to Generate Visibility During Election Season
It is important to remember that the presidential election is going to dominate headlines for much of the back half of the election year, and even through Inauguration Day. This means companies looking to get visibility in the media – even around a significant announcement – will be challenged, and everything may be viewed through a political lens. With that in mind, there are several media strategies to think about leading up to a national election:
· When possible, develop media pitches that tie to the election, potentially around areas that the candidates agree on
· Focus on industry and/or beat reporters over policy-focused D.C.-minded media
· No matter what, manage expectations for your management team. The election typically sucks up all the oxygen in the room and a media strategy “success” can sometimes be in the eye of the beholder
· Be extremely mindful of endorsements, campaign contributions and executive appearances at political events, even if in their personal capacity. Yes, it might bring publicity, but all press is not always good press
Conclusion
While election season can be tricky for public companies, there are several tried and true strategies to help you avoid the pitfalls of being aligned with one candidate or vision for the future. Every company built to last should be able to successfully operate in all market conditions – regardless of the party in power – so getting that message out there early and often will ensure your company “wins” in November no matter what.
About DGA Group
DGA Group is a global advisory firm that helps clients protect – and grow – what they have built in today’s complex business environment. We understand the challenges and opportunities in an increasingly regulated and interconnected world. Leveraging the expertise and experience of our team at Albright Stonebridge Group, a leader in global strategy and commercial diplomacy, and a deep bench of communications, public affairs, government relations and business intelligence consultants, we help clients navigate and shape global policy, reputational and financial issues. To learn more, visit dgagroup.com.
For additional information or to arrange a follow-up, please contact Chris.Kettmann@dgagroup.com and Adam.Cubbage@dgagroup.com.