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Thursday, August 17, 2023

The Partisan Realignment of Business

 The Partisan Realignment of American Business:Evidence from a Survey of Corporate LeadersEitan Hersh and Sarang Shah*August 1, 2023. Abstract 

For decades, the business community has been viewed as a core constituency of the Republican Party. However, several factors, such as corporate prioritization of social values and anti-business sentiment among Republican rank-and-file, suggest a majorcoalitional shift is underway. Scholars have debated whether this shift is an illusion or is real. At the core of this debate is how business leaders navigate two forms of organizational conflict: a.) stakeholder cross-pressure, and b.) policy cross-pressure. To measure cross-pressure, we conduct an original survey of elite business leaders. Our evidence suggests a widespread view that companies are increasingly aligned withthe Democrats, including in alignment on core policy priorities. When companies are cross-pressured, leaders perceive the company as leaning toward the Democrats. The decoupling of business from the Republican coalition represents one of the most significant changes in American politics in decades