What Shapes Corporate Involvement in Voter Referendums? The Case of Opposition to GM Food Labeling

Abstract

What propels the involvement of large U.S. corporations into statewide voter referendums? We test the argument of whether corporate political behavior is characterized by firm-level factors or more relational sectoral and classwide networks. Using the 2012 ballot proposition to mandate labeling of genetically modified (GM) foods in California as a case, we analyze corporate donation patterns. We find that while individual interests are significant predictors of involvement, these are eclipsed by relational factors. Corporate embeddedness in sectoral and classwide networks are strong predictors of political involvement, fostering greater opposition to GM food labeling. In addition, using dyadic analysis, we find these networks enable greater unity among these corporations. These findings have implications for our understanding of corporate involvement in voter referendums and on the collective political action of large corporations.