Since the U.S. Supreme Court’s 2010 decision in Citizens United v. Federal Election Commission, 130 S.Ct. 876, much has been made of the newly minted ability of corporations to spend money supporting and opposing federal candidates. Companies and their executives are receiving requests to engage in political activity while facing questions, and even shareholder demands, regarding their decision to do so. At the same time, a number of cases challenging the restrictions and limitations of federal campaign finance laws continue to wind through the courts threatening to further change the political landscape, including a challenge to contribution limits that was recently granted review by the U.S. Supreme Court.
While Citizens United opened the door to broader corporate spending in certain contexts, understanding the limitations of that decision, and the myriad cases that followed, is critical for any corporation wishing to avoid becoming the subject of a legal enforcement action or negative press coverage.
