In the world of politics – money talks. The headlines across national and local news sources announced some rather bad news for Republic lawmakers who refused to certify the election of President Joe Biden: donations by the Toyota PAC will come to a stop.
This was a stunning announcement for two important reasons. First, it signaled that large corporations like Toyota cannot afford to sit on the sidelines on the Jan. 6 riot event and continue to make donations to these rogue Republican lawmakers. Secondly, the appearance that the behavior of these rogue legislators was endorsed by Toyota could potentially threaten the company’s competitive position in the automotive industry. Why should this matter to large corporations like Toyota?
Many large
corporations have invested significant advertising dollars to capture the
consumer dollars of U.S. multicultural consumers, such as African Americans,
Latinos and Asians. Indeed, HIS Markit recently
reported that 29 percent of new vehicles registered in 2020 were multicultural
– translating to millions in vehicle sales. In addition, multicultural consumer
spending is significant for brands in many industries other than
automotive.
As illustrated by the chart below, the aggregate household income – a crude measure of buying power – was $885 billion for African Americans, $1.1 trillion for Latinos and $683 billion for Asians. Thus, the total buying power for these multicultural segments was $2.6 trillion in 2019.[1] It is hard to imagine that this buying power would not matter to an organization whose profitability depends on the multicultural consumer spending.
While several large corporations expressed initial interest in withholding donations to the GOP following the Jan. 6 riot, few had actually followed up on that commitment. [2] A report released by the progressive watchdog group Citizens for Responsibility and Ethics in Washington that identified Toyota as the top donor to election objectors in the months following the insurrection at the U.S. Capitol. [3] Dallas-based AT&T and Austin-based Dell also continued their donations to these GOP lawmakers. A little nudging from the Boycott Toyota campaign initiated by The Lincoln Project may have provided the needed impetus for Toyota to make their recent announcement.
Although boycotts,
either real or threatened, may not be the preferred way of negotiating business
and political relationships, it is likely to gain momentum as the stakes
continue to rise by aggressive GOP efforts to restrict the voting rights of
communities of color. While GOP operatives are making significant strides with
legislation to restrict voting rights, they are less prepared to interfere with
a well-coordinated campaign to boycott companies that underwrite the political
campaigns of Republican lawmakers who continue to undermine our democracy. The growing sophistication and penetration of
social media is also likely to facilitate the economic impact of a boycott should
it occur.
Whether they
realize it or not, multicultural groups in the U.S. have tremendous economic
clout to change the political behavior of corporations whose brands have
benefited significantly from their consumer spending. The decision to launch
boycotts against corporations that support controversial GOP lawmakers will be
easier once corporate donation practices are publicly disclosed as The Lincoln
Project did to justify their boycott campaign against Toyota. However, multicultural organizations may be
hesitant to support a boycott against a corporate entity that is donating funds
to these controversial GOP lawmakers while also contributing funds to community
programs that support multicultural organizations – a delicate decision indeed.
It is also worth
mentioning that GOP lawmakers often pursue agendas that are counterintuitive. For example, a pro-life legislative strategy
that challenges abortion rights seems contradictory to support for gun rights legislation
that contributes to the rise in mass homicides.
Similarly, one can also question the logic of suppressing voting rights among
people of color while also promoting low vaccination rates in predominantly
Republican communities – how does this tactic promote election victories if many
of the unvaccinated Republican voters will not live long enough to cast a vote
in the next election?
The reader should
be advised that I am not advocating for boycotts of corporate brands that
support these controversial Republican lawmakers, but merely underscoring the potential
vulnerability of corporations to a well-coordinated boycott that levels the
playing field in the battle for voting rights.
Reference Notes
[1]
American Community Survey 5-Year Estimates, Tables B19025, Aggregate household
income for Blacks, Latino and Asian Households.
Accessed at https://data.census.gov/cedsci/
[2]
DeFurio, D. (2021 July 8). Toyota says
it will stop donating to politicians who opposed certification of Biden’s
election win. Dallas Morning News.
Accessed at: https://www.dallasnews.com/business/local-companies/2021/07/08/toyota-says-it-will-stop-donating-to-politicians-who-opposed-election-certification/
[3]
CREW (2021, June 23). Accessed at: https://www.citizensforethics.org/reports-investigations/crew-reports/this-sedition-is-brought-to-you-by/
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