If a corporation wants to be favorably viewed, it better watch its political stances

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Poll: Public wary of corporate politics
By Byron Tau, March 27, 2013

Americans are skittish about corporations getting heavily involved in hot-button issues like gay marriage, abortion and health care reform, according to a new poll.

A Global Strategy Group survey found that 31 percent of Americans feel it’s appropriate for companies to weigh in on social issues including same-sex marriage or abortion. Fifty-six percent of those polled said it’s inappropriate for companies to take a stance on issues that do not affect their business.

Major American brands like Chick-fil-A, Papa John’s and others have found themselves embroiled in controversy over staking out political positions. Chick-fil-A faced boycott calls from some progressives when a senior official blasted same-sex marriage. Papa John’s caused a similar controversy last year when the CEO said President Barack Obama’s health care law would case pizza prices to rise.

The survey also found that a corporation’s perceived political identity was correlated with brand favorability ratings.

Corporations that were seen as partisan by the public got lower favorability ratings, while “nonpartisan” or middle-of-the-road companies were viewed more favorably.

MTV, Nickelodeon, and other companies like Weightwatchers, Whole Foods, Toys R Us, Amazon and Target were seen as liberal, while Wells Fargo, News Corp, Chick-fil-A , Marriott, Staples and Hilton were seen as conservative. Those companies received much lower favorability ratings than companies seen by consumers as nonpartisan — including Apple, Walt Disney, PepsiCo, Costco and Coca-Cola.

The study found that companies perceived by consumers to be in opposition to their political values experience a 42-point drop in brand favorability. Consumers who agree with a corporation’s political position show no more likelihood to have a more favorable impression.

“These are big indications for companies considering wading into political waters to test those waters first,” said Nick Gourevitch, senior vice president and director of research at GSG. “If people disagree with a position, it’s bad for brand favorability — and could be very bad for business. Likewise, if a position is controversial, companies need to be ready for it to become a very public position.”

The poll surveyed 806 Americans 18 years or older in the fall and winter of 2012, with a margin of error of plus or minus 3.45 percent.
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