Georgia’s big businesses don’t duck politics
Political action committees of Aflac, UPS, Coke, others give millions to candidates
The Atlanta Journal-Constitution
Sunday, October 19, 2008
It’s not clear whether the Aflac duck is a Democrat or a Republican, but he’s definitely a political animal.
Columbus-based Aflac, which uses a duck to promote its line of insurance products, is one of the most active Georgia players in this year’s political contests. Its super-charged political action committee — the second largest business PAC in the state — doled out $1.4 million to federal candidates by the end of last month. Only the corporate political action committee of Sandy Springs-based UPS spent more among Georgia companies, with $1.6 million in contributions to federal candidates at the time of its last report.
AP
Columbus-based Aflac’s political action committee doled out $1.4 million to federal candidates by the end of last month.
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“Everyone here knows we get very involved in the political process,” said Joey Loudermilk, an Aflac vice president who is treasurer of the Aflac PAC.
Aflac executives and insurance agents bankroll the PAC, which dates back to the 1970s. The PAC reflects a heavy interest in politics by the company’s co-founder, the late John Amos, as well as the company’s need to have friends in Washington. The company’s success is influenced by insurance and trade legislation and even international relations, since 70 percent of its business is in the Japanese market.
The company has such a strong record of giving to candidates and parties over the past two decades that it ranks No. 53 on the Center for Responsive Politics’ list of the nation’s 100 “heavy hitters.”
Aflac’s PAC operates like most corporate political action committees: It heavily supports incumbents of all political persuasions. During this political cycle, Aflac split its contributions evenly among Democrats and Republicans. Its power is in its broad reach. It has contributed to 276 candidates for the U.S. House and 67 for the U.S. Senate, the vast majority of them incumbents.
The contributions help Aflac increase understanding of its products — supplemental policies that pay cash on top of what a consumer’s medical insurance pays to doctors and hospitals. Some of the policies cover cancer. Others kick in in the event of hospitalization or a disability.
“The most important thing is educating the members of Congress as to who we are, what we do and why we are different from everybody else,” said David Pringle, Aflac’s senior vice president for federal relations and secretary of the Aflac PAC.
The UPS PAC has supported even more candidates than the Aflac PAC during this election cycle: 367 for the House and 73 for the Senate.
UPS’s business can be influenced by a wide range of issues that come before Congress, including trade, energy, infrastructure and aviation.
“We look to use the PAC to support the candidates who share our beliefs,” UPS spokesman Malcolm Berkley said.
The state’s other large corporate PACs include those run by Southern Co., the utility holding company; Coca Cola Co. and its largest bottler, Coca Cola Enterprises; the King & Spalding law firm; Flowers Industries, a food company based in Thomasville; Solvay Pharmaceuticals; Mirant Corp., an energy company; and the Powell Goldstein law firm.
Most corporate PACs give to candidates and committees of both parties. One exception is the Flowers Industries Inc. PAC, which has given only to Republicans and other food industry PACs during this election cycle.
The Coca-Cola Nonpartisan Committee for Good Government, which contributed $162,550 to federal candidates through August, gave heavily to both parties, focusing on senators and representatives already in office. Diana Garza Ciarlante, spokeswoman for Coca-Cola, said the PAC gives money to promote business and trade, but has a long-standing policy of never giving to presidential candidates.
Political action committees have been viewed as powerful tools of special interest groups, businesses, labor unions and trade organizations. They offer those with similar interests a convenient way to collect and pool money and then dole it out to a range of candidates and political committees.
“The purpose is to buy favor with Congress and the president,” said Craig Holman, a campaign finance lobbyist for Public Citizen, a Washington consumer organization. “It has no other rationale behind it. That isn’t as true for ideological groups or for that matter for labor unions. They tend to be more ideological in their giving.”
Companies can’t ask for any favors when their political action committees give a contribution. But most with large political action committees also employ a large stable of lobbyists. Between 2004 and 2007, Aflac averaged $3.9 million in annual lobbying expenses, according to the Center for Responsive Politics.
“It’s one part of a much larger enterprise of trying to shape public policy in a way that’s favorable for your enterprise,” said Gary C. Jacobson, political science professor at the University of California-San Diego and an expert on congressional elections.
Sen. Barack Obama has refused to accept contributions from PACs during his presidential campaign. But most candidates don’t hesitate to take the money. In fact, they push for it.
Atlanta-based King & Spalding, Georgia’s largest law firm, organized its PAC about 15 years ago to cope with a constant flood of requests from politicians looking for campaign donations, said Theodore Hester, a senior partner at the firm’s Washington office and chairman of the firm’s PAC.
“It was simply to coordinate,” he said. “Every senator seems to view Atlanta as one of the fund-raising stops on their circuit. We are under constant pressure.”
Hester said the PAC serves as a way to funnel requests for money away from individual lawyers. The King & Spalding Nonpartisan Committee for Good Government is the sixth-largest corporate PAC in Georgia. It doled out $232,000 during this election cycle, including $153,499 to federal candidates, according to its most recent reports.
The firm — with more than 750 attorneys around the world — has found, like many other large companies, that “part of their business requires participation in the political process,” Hester said. “I have found that one of the best ways for us to participate is with money.”
Aflac executives agreed that candidates are always on the hunt for contributions.
“Most people think corporations are chasing members of Congress trying to give them money and it just doesn’t work that way,” said Pringle, of Aflac. “It’s exactly the opposite.”




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Comments
By Tammy
Oct 19, 2008 6:28 AM | Link to this
San, I couldn't have said it better myself! I met Public Service Commission candidate Jim Powell & his wife Karen several months back, and was totally impressed with what he had to say from his perspective on the future of energy regulation in Georgia and its impact upon the consumers. He's one sharp cookie and someone who I think will get a lot accomplished. Lauren (Bubba) McDonald who is running against Powell is a typical politician--full of lies and sneaky tactics. He proved that when he formerly served on the PSC some years back. Anyone would have to be stupid to even think about helping him to get back in office.
By jedclampette
Oct 19, 2008 5:40 AM | Link to this
Obama has catered to the rich and powerful. George Soros and the democraticunderground and moveon.org. You have to be a fool if you thinks democrats actually care for the poor and middle class. They want your vote.
By San
Oct 19, 2008 5:32 AM | Link to this
Damn the Hockey mom & to Hell with Joe the Plumber! Sooner or later Commonsense Chrissy had better stand up! Throwing all of your support behind upper-level political races like that of Chambliss-Martin is not the most intelligent thing to do considering such races will only ultimately effect all Georgians "indirectly;" whereas races like the statewide Public Service Commission between figures like Jim Powell vs Lauren "Bubba" McDonald impact each & every Georgia citizens' pocketbook "directly!" WAKE UP people! Because THE LATTER is the race that will play upon a lot of your household necessities (such as your monthly rates for electric, telecommunications & natural gas). And from what I've learned & seen, JIM POWELL is unquestionably the better choice! Like Obama, Powell is a stand-up kind of guy who will not hesitate to advocate on behalf of the consumer instead of catering to the power-thirsty corporations. Besides, he has 30-plus years of experience as a knowledgable former U.S. Dept. of Energy official. If the current (outgoing) Republican PSC Commissioner Angela Speir crossed party lines and endorsed Democrat Jim Powell, and the AFL-CIO of Georgia & the AJC have endorsed him too, what does that tell you?
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