Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • Dick Young’s Safe America
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Retirement Compounders®
  • Free Email Signup

Just How Involved in Politics Should CEOs of Public Companies Become?

May 30, 2017 By Dick Young

LtR: Fmr. Ford CEO Mark Fields, President Donald Trump, Starbucks Executive Chairman Howard Schultz

There are billionaire business owners on both sides of the political spectrum who spend tons of money on politics. Charles and David Koch are universally known as funders of right wing causes, and Michael Bloomberg probably spends more on gun control advocacy than anyone else. But these men all own their companies outright.

Recently Ford CEO Mark Fields was replaced in large part due to his involvement in the 2016 political campaign, and his actions afterward. John D. Stoll writes:

A longtime Ford executive, Mr. Fields is seen as having unnecessarily put the iconic car company on President Donald Trump’s radar during last year’s campaign, according to a person familiar with the board’s thinking. As then-candidate Mr. Trump was railing on companies that make products in Mexico and ship them to U.S. stores, Mr. Fields boldly told shareholders about a plan to move production of the Ford Focus from Michigan to San Luis Potosí.

What Mr. Fields didn’t make clear was that the auto maker had specific products in mind to replace the Focus and preserve jobs, the person said. Mr. Trump pounced, painting the 114-year-old auto maker founded by Henry Ford as the poster child for outsourcing and Exhibit A of why the North American Free Trade Agreement was bad for American workers, including the roughly 150,000 factory workers employed by Detroit’s Big 3.

The spotlight came at a bad time for Mr. Fields because he was working to change the perception of Ford by making a slew of announcements about so-called mobility projects (such as ride hailing or car sharing) at a time when the auto maker is primarily dependent on pickups and sport utilities. The timing of Mr. Fields’ Mexico announcement was seen internally as a major gaffe, reinforcing a growing perception internally that his management team struggled to connect with constituents ranging from wealthy investors to everyday Americans, according to the person.

The actions Mr. Fields took in the span between Mr. Trump’s nomination as the Republican candidate for president and Inauguration Day only created more confusion, the person said, and ended up costing the company hundreds of millions of dollars in lost investment due to the cancellation of the San Luis Potosi plant.

Starbucks’ Howard Schultz is another CEO of a publicly traded company that has had political run ins. In response to President Trump’s ban on travel from certain countries, Schultz pledged to hire 10,000 refugees at Starbucks. FoxBusiness reports that the move may have hurt Starbucks’ business.

In January, Starbucks pledged to hire 10,000 refugees over the next five years in 75 countries. The move came in response to President Trump’s initial temporary travel ban executive order.

“We are living in an unprecedented time, one in which we are witness to the conscience of our country, and the promise of the American Dream, being called into question,” Starbucks CEO Howard Schultz said at the time.

According to one brand tracker Opens a New Window., the coffee giant’s consumer perception levels took a sizable hit immediately following the announcement. Starbucks has since refuted the data.

The question is, are shareholders’ best interests served when CEOs get involved in political battles?

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • Companies Celebrate Tax Reform
  • Can Trucking Companies Fend Off a Holiday Armageddon?
  • Companies Top Up Pensions Before Losing Tax Break
  • Author
  • Recent Posts
Dick Young
Richard C. Young is the editor of Young's World Money Forecast, and a contributing editor to both Richardcyoung.com and Youngresearch.com.
Latest posts by Dick Young (see all)
  • What Do You Know About Vanguard’s Wellesley Income Fund? - June 8, 2023
  • China Factory Slowdown Depresses Energy Demand - June 8, 2023
  • Is the Regulation Reaper Coming for Crypto? - June 8, 2023

Search Young Research

Most Popular

  • Starving for Fixed Income? I Can Help
  • June Is Retirement Compounders Month
  • ALLIGATOR MARKET: Calm Surface Hides Danger Below
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • CBDCs Not “Just Another Form of Money”
  • What's Hiding In the London Metals Exchange Warehouses?
  • End of ESG?
  • China Increases Its Gold Reserves for Seventh Month Straight
  • Successful Investing Is a Mindset
  • Young’s Retirement Compounders

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

The Importance of a Balanced Portfolio

Invest with Peace of Mind and Comfort

What Kind of Life Are You Investing For?

RSS The Latest at Richardcyoung.com

  • Oh Canada: Wildfires at a Blistering Pace
  • RAGE Gauge June: Remember When You Were A Kid and Money Was Free?
  • What Do You Know About Vanguard’s Wellesley Income Fund?
  • CRUMBLING EMPIRE: Major Hotel Flees San Francisco as City Suffers
  • MUSIC IN DANGER: Is This the Worst Use for AI?
  • Crushing the Heretics
  • Starving for Fixed Income? I Can Help
  • The Four Most Important Words in Investing
  • SUPER STATE RISING? This State Is Doing All the Right Things
  • RIP Astrud Gilberto

RSS The Latest at Yoursurvivalguy.com

  • RAGE Gauge June: Remember When You Were A Kid and Money Was Free?
  • Your Retirement Life: Striped Bass Fishing off Block Island
  • Artificial Intelligence or Four-Year Olds?
  • Forbes Global 2000: The Bigger They Are, the Harder They Fall?
  • Starving for Fixed Income? I Can Help
  • SUPER STATE RISING? This State Is Doing All the Right Things
  • End of ESG?
  • Your Survival Guy’s Take on ChatGPT and AI
  • ALLIGATOR MARKET: Calm Surface Hides Danger Below
  • My Nephew Graduates, and I’m Larry the Cable Guy

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2023 | Terms & Conditions

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.