Corporate political activity: The good, the bad, and the ugly

Many executives mix business with politics, but to what end? Over the past 30 years, researchers have examined whether this practice leads to increased business performance, and have found conflicting results. Via meta-analysis, we reexamined these results and condensed them into one meaningful package. The good news is that businesses which mix business and politics generally receive handsome returns. The bad news is that engaging in political activity has risks and can hurt performance. The ugly news is that risks can be mitigated; however, the methods for doing so are likely to offend some firm stakeholders. Overall, we conclude that mixing business with politics is beneficial, although executives must pursue the practice with a hint of caution.