In this article, which is the third of Allen & Overy’s weekly coverage of political law issues designed to help in-house legal and compliance personnel manage risks, we’ll look at an issue that has been prominent throughout the presidential primaries this year. Election season carries a unique set of reputational risks for companies. Legal and reputational consequences can arise out of the present and past business relationships of the candidates themselves, or a candidate can bring a company into the campaign discussion in ways that may harm the company’s brand or business.
Companies that engage in political advocacy may attract criticism or even economic boycotts. Such crises can be distracting and time-consuming and can even lead to loss of market share. Being aware of your political law and reputational risks, and preparing an effective public relations and legal response in advance, will help your company react when problems arise unexpectedly.
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