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Business | Government Affairs

Politics and Construction

by Brian Gallagher on

Understanding the opportunities and risks of political engagement

With the next election cycle approaching, the political landscape is heating up. From the race for the White House to Congress and state and local offices, major policy decisions will be shaped by those elected to lead. As a construction executive, you’re likely considering what, if any, role your company should play in this dynamic environment. Should your firm engage politically, stay neutral, or focus entirely on the work at hand? There’s no simple answer, and every company’s approach will be different. What matters most is that your stance is intentional, strategic, and aligned with the interests of your business, clients, employees, and community.

The Pros and Cons of Political Engagement

Before diving into whether your firm should take a political stance, it’s essential to weigh the pros and cons of political engagement for a construction company. Being politically active in Washington, DC; Raleigh, NC; Columbia, SC; or in local municipalities can offer significant benefits, but it also carries real risks.

The Pluses of Political Engagement

  • Influence on Policy: Engaging in politics can give your company a seat at the table when policies that impact construction are being discussed. This includes issues like infrastructure spending, labor regulations, zoning laws, tax incentives, and environmental requirements. Influence on policy includes Washington DC, but also in North Carolina and South Carolina.
  • Access to Funding and Contracts: Politically engaged firms often have better access to government-funded projects. Establishing relationships with elected officials can open doors to new business opportunities, including contracts for infrastructure, public buildings, and community development.
  • Advocacy for Industry Interests: The construction industry faces challenges such as workforce shortages, regulatory hurdles, and supply chain disruptions. By engaging in politics, firms can advocate for favorable policies that address these issues and support the growth of the sector.
  • Reputation and Brand Building: Some firms build a strong brand by aligning with specific social or political causes. Taking a stance can enhance your firm’s reputation among like-minded clients, partners, and employees, helping you attract business and talent that shares your values.

The Minuses of Political Engagement

  • Potential Backlash: Politics can be polarizing, and taking a stand—whether supporting a candidate, a policy, or a cause—can alienate some clients, employees, or partners. Not everyone will agree with your stance, and some may choose to take their business elsewhere.
  • Internal Tensions: Political engagement can create internal challenges, especially if employees have diverse political beliefs. It can lead to division within the team, lower morale, and even retention issues if not managed carefully.
  • Reputational Risks: If a political stance backfires or is perceived as controversial, it can negatively impact your firm’s reputation. A misstep in the political arena can generate unwanted media attention, harm client relationships, and make it harder to attract new business.
  • Time and Resources: Political engagement can be time-consuming and resource-intensive. It requires commitment, strategic planning, and relationship-building. If not carefully aligned with business goals, it can become a distraction from core operations.

Weighing Political Engagement: Questions to Consider

There’s no one-size-fits-all answer when it comes to political involvement for construction firms. However, arriving at the right answer for your business requires thoughtful consideration of several factors. Here are key questions to help guide your decision:

  • What Are Your Core Business Objectives? How will political engagement support (or distract from) your core business goals? If aligning with political causes or candidates could lead to new contracts, funding opportunities, or favorable regulations, it may be worth considering.
  • Who Are Your Key Stakeholders? Consider your clients, employees, and community. How might political involvement impact these relationships? Will clients see it as an advantage or a liability? Will employees feel proud or alienated by the stance? Understanding stakeholder perspectives is essential.
  • What Are the Risks and Rewards? Evaluate both the potential benefits and the risks of political engagement. Is the reward—be it influence, business opportunities, or brand building—worth the possible reputational damage, backlash, or internal discord?
  • What Is Your Firm’s Culture and Values? Consider your company’s mission, vision, and core values. If political involvement aligns with your culture and strengthens your brand identity, it can be a strategic asset. If it feels forced or misaligned, it’s likely to be counterproductive.
  • Are You Prepared to Manage the Consequences? Political engagement may result in public praise, criticism, or both. How prepared are you to handle the potential fallout? Having a crisis management plan in place can mitigate the negative impact of any backlash.

A Framework for Navigating Political Engagement

If you decide that political involvement is the right path for your construction firm, consider using a strategic framework to guide your approach. Here’s how to engage thoughtfully:

  • Define Your Objectives Be clear about why you are engaging politically. Are you seeking to influence policy, win government contracts, enhance your brand, or support industry-wide interests? Defining your objectives will help you stay focused and measure outcomes.
  • Align Engagement with Your Core Values Ensure that any political involvement aligns with your company’s mission and values. This will help build internal buy-in, strengthen external messaging, and avoid perceptions of opportunism.
  • Identify Key Issues Focus on the issues that matter most to your business, such as infrastructure investment, labor laws, tax incentives, or environmental regulations. Your political engagement should be issue-driven rather than partisan-driven to minimize risk.
  • Build Relationships with Lawmakers and Industry Groups Political engagement is as much about relationships as it is about positions. Build relationships with policymakers, trade associations, and industry groups that align with your interests. Advocacy is most effective when part of a broader coalition.
  • Establish Internal Communication and Guidelines Communicate your political strategy clearly to employees, explaining the rationale and expected benefits. Be transparent about the decision-making process and set guidelines for how the firm will engage, ensuring consistency across the board.
  • Prepare for Potential Backlash Be ready to respond to criticism—both internally and externally. Have a crisis communication plan that outlines how you will address concerns, respond to negative press, and manage client or employee reactions.
  • Measure Outcomes and Adjust Track the results of your political engagement and adjust your strategy as needed. Did it lead to new business opportunities, influence legislation, or enhance brand awareness? Use data to refine your approach.

Balancing Strategy with Political Realities

Political decisions can have a significant impact on firms in the construction industry, from infrastructure spending to labor regulations. While political engagement can be a powerful tool, it is also fraught with complexities. Not everyone will agree with your political positions, but that doesn’t mean you should avoid politics altogether. What matters is aligning your strategy with the political environment in a way that supports your business objectives, benefits your stakeholders, and advances the industry.

Closing: Find the Right Stance for Your Firm

For construction executives in the Carolinas, deciding whether to engage politically is not just about risk management—it’s about strategic positioning. Your firm’s stance on politics should be clear, consistent, and aligned with your broader business strategy. While political engagement is not right for every company, it can be a vital part of advancing your interests and contributing to the industry’s growth.

As elections draw near, now is the time to reflect, assess, and make an intentional choice about your role in the political landscape. Engage if it aligns with your business goals, stakeholders, and values. And if you choose to engage, do so with a clear strategy, strong internal communication, and an eye toward the long-term health of your firm and the industry as a whole.