As we explained in first article in this weekly series on political law issues designed to help in-house legal and compliance personnel manage risks, electoral engagement is critical for the bottom line of many corporations. And the most common way of participating in the process is through the creation of a political action committee (PAC). Corporate PACs are playing a growing role in politics, raising $352 million in the 2012 presidential cycle and $378 million in the 2014 mid-term cycle. In 2015 alone, the year before any election is held, corporate PACs raised over $168 million, and fundraising is likely to increase as the 2016 general election approaches.

Since the U.S. Supreme Court’s 2010 ruling in Citizens United v. Federal Election Commission and its progeny, corporations have been able to make independent expenditures and contribute to Super PACs, but the most common form of corporate political engagement remains the traditional corporate PAC. Although the 2016 election is still more than seven months away, some of the most prolific corporate PACs have already made more than $1.5 million in contributions. The top corporate PAC spender in the 2012 election cycle made more than $3 million in contributions. Corporations with business interests that depend on government contracts and that operate in highly regulated industries tend to have the most active corporate PACs. Sectors with particularly active corporate PACs include finance, insurance, aerospace, telecommunications, pharmaceuticals, aviation and gaming.

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