The term PAC has assumed a decidedly negative connotation in many circles since political action committees like Newt Gingrich's GOPAC and the Christian Coalition have been hauled into court over possible Federal Election Commission (FEC) violations.
In corporate settings, however, government relations executives eschew that stigma and focus on managing these fundraising programs through education.
"The most challenging thing about our role is asking people to buy into a process and hope employees see it as more than just money," says Kim Wirth, government affairs coordinator for forest paper products company, Champion International Corp., Stamford, Conn. "It's about conveying what's seen as important."
Champion has 18,000 employees in the U.S. and approximately 20,000 abroad.
It's federal PAC was set up in the 1970s and has a successful 33 percent employee participation rate. The company uses a bi-weekly report and intermittent newsletters to keep employees abreast of where money is being funneled. They chronicle what's happening in both state and federal political and legislative venues.
Perhaps what has made PACs a popular target of disdain is that they were established to prevent corporations and labor organizations from forking out money to influence federal elections. But the FEC allows for separate segregated funds (SSFs), now referred to by the hybrid term "PAC." PACs must be registered with the FEC within 10 days of being established.
PACs are overseen by treasurers, but corporations often align government relations and grassroots communicators to help facilitate educating both employees and other potential contributors about their goals.
News alone, however, may not be enough to rally internal involvement in a sprawling company, so some businesses seek new ways of fostering employee understanding through interaction. What's also becoming increasingly popular are companies which establish incentive clubs that offer perks such as lunch with the CEO or a gift.
The Punch of PACs
Much of the news that the public hears about PACs is akin to the current buzz that Speaker of the House hopeful Bob Livingston (R-La.) using PAC money to support his bid for the spot vacated by Newt Gingrich. But within companies, PACs are often on the corporate periphery, communicating to employees a sense of their employers' visions.
Since the value and legitimacy of PACs tends to be misunderstood, your CEO can help employees understand the rules governing the role they can play in the political process, and the goals of the corporation's PAC efforts. Government relations execs become information channels for keeping those PACs up and running. Government relations professionals may also take on PAC administrative functions.
One electric utility, GPU, Inc., Morristown, N.J., found a way of better managing its contribution drive by combining fundraising efforts for its federal PAC and two state PACs into one program. The three campaigns had been handled separately. Bank accounts for the three PACs were kept intact and separate, but the company found a combined campaign reduced administrative overhead and polished its promotional campaign, says Joel Brubaker, treasurer.
About one-third of the company's 9,000 employees are eligible to contribute to the federal PAC and the same number make the typical contribution of one-half of 1 percent of gross pay. Since the company decided in 1997 to combine solicitation efforts, PAC donations have grown, rising from $85,000 in 1995 to $210,000 this year.
Incentives used to motivate employees included a letter from its CEO, group meetings and monthly reports that kept people apprised of developments. GPU, however, also used one-to-one contact with employees to spread the word; senior managers were asked to serve as information coordinators.
There are several clearinghouses for those in the PAC arena, including the FEC, which can overnight regulations to those who request packets; and http://www.tray.com, which lists corporations' PAC contributions.
(Joel Brubaker, 202/434-8152; Kim Wirth, 202/785-9889)
| Leading PACs in 1997-98 by Total Receipts | ||
| 1. | $10,801,212 | Emily's List |
| 2. | $ 5,971,927 | Democratic Republican Independent Voter Education Committee |
| 3. | $ 5,586,687 | American Federation of State County and Municipal Employees |
| 4. | $5,419,782 | NRA Political Victory Fund |
| 5. | $4,978,197 | New Republican Majority Fund |
| 6. | $3,976,180 | Association of Trail Lawyers of America PAC |
| 7. | $3,967,624 | Campaign for Working Families |
| 8. | $3,956,801 | UAW - V - CAP (UAW Voluntary Community Action Program) |
| 9. | $3,912,001 | National Education Association PAC |
| 10. | $3,806,054 | AMERICAN MEDICAL ASSOCIATION PAC |
| Source: FEC | ||