Corporations and Labor Unions in Electoral Politics

Abstract

Federal prohibitions of corporate and union con tributions have been motivated by two objectives: to reduce or eliminate domination of the electoral process by business and labor through their aggregated wealth; and to protect stock- holders and union members from having their organizations' funds used for political purposes of which they do not approve. Federal regulations have been largely ineffective in prevent ing corporate and union monies from reaching political candi dates and parties both legally and illegally. Recent develop ments, including passage of the Federal Election Campaign Act of 1971 as amended in 1974, important decisions by the Supreme Court since 1972, and rulings by the Federal Elec tion Commission, have widened the area of legal campaign- related activities in which corporations and labor organizations can engage, particularly through political action committees. The liberalization of previous restrictions, together with more rigorous and effective electoral disclosure requirements, and widespread public suspicion concerning the political activities of "special interests" make it likely that business corporations and labor unions will be quite circumspect in their election involvements during 1976. However, several legal and polit ical issues which could affect corporate and union campaign activities in 1976 and beyond remain unresolved.