U.S.

Corporate Campaign Shakedowns

By CBSNews.com staff CBSNews.com staff

October 21, 2000 / 10:34 PM EDT / CBS

When the phone rings at this time of year at corporate headquarters around the country even the most powerful chief executives tremble. They know it could be yet another demand for big bucks from a well-oiled protection racket.

Charles Kolb heads a business group filled with corporate heavies. He knows their fears.

"Many of our trustees have used the word 'shakedown. That's how they feel when they get these calls," Kolb says.

Is he talking about some modern-day version of Al Capone, or one of the other mobsters who extorted money from businessmen by threatening unpleasant consequences?

No: the "shakedowns" he's talking about emanate from candidates for Congress and president. Over the last 18 months more than $1.6 billion has been raised by candidates, parties and other political groups involved in the federal election.

Almost half of that came from big corporations, and as CBS News Correspondent Eric Engberg reports, some of them aren't happy about getting the squeeze.

They say they're not giving out of a dedication to civic betterment.

"It's not the business leaders rushing to give money to the politicians, It's the politicians shaking down the business leaders," Kolb says.

That conclusion is drawn from a recent poll of 300 top executives from major corporations. Of those polled, 54 percent said the reason big business gives to politicians is "to avoid adverse legislative consequences" or to "buy access to influence" legislation.

Approximately 75 percent say business leaders believe their contributions give them an advantage in shaping legislation, and 79 percent believe the campaign system is broken and needs to be reformed.

"I think corporate leaders are afraid of the system. Most of them, as the poll says, would like to get out of this situation," says Harry Freeman, former vice president of American Express.

What has the business execs in an uproar is not just that politicians now routinely ask for tens of thousands at a crack, but that the image of corporate America is tarnished by the widespread belief the companies are seeking to buy favors with their dollars.