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U.S. Chamber of Commerce Faces Changing Times

Tom Williams/CQ Roll Call File Photo
U.S. Chamber of Commerce President and CEO Thomas Donohue trumpeted the organization’s centennial even as it faces an evolved and fractured political landscape.

Engstrom said the chamber’s political program “is growing in an exponential way” and will surpass the almost $33 million in political expenditures that the group made in 2010, itself a record for the organization. In addition to campaign ads, which already top $3 million, the chamber is building on a grass-roots program launched in 2007 dubbed Friends of the Chamber that’s built an email network of 7.5 million likely voters.

The chamber is capable of doing anything it wants without the need to form a super PAC and can draw on its century-old brand, Engstrom said.

Still, leading super PACs could well outspend the chamber this year, including the GOP-friendly American Crossroads, which, with its affiliated nonprofit, has pledged to spend $240 million in the current cycle. And the anti-government Club for Growth, which operates a new super PAC that’s raised more than $5 million, is running ads attacking Rep. Fred Upton (R-Mich.) and Sen. Dick Lugar (R-Ind.), both of whom won backing from the chamber.

“The super PAC development has given, I think, more voices the opportunity to engage in the political debate, and I think that’s a good thing,” Club for Growth President Chris Chocola said. He said the club is “a pro-free-market” organization, while the chamber is a “pro-business organization,” adding that he couldn’t recall working closely with the chamber on anything.

The chamber’s latest ad campaign, aimed at 20 House Members and Senators, has led some local chambers and business leaders in Montana and Virginia to distance themselves from the messaging. Two rounds of ads targeting Sen. Jon Tester (D-Mont.), which the campaign said totaled $600,000 and included one ad that misspelled his name, prompted Steve Malicott, president and CEO of the Great Falls Area Chamber of Commerce in Montana, to pen an op-ed assuring business leaders that his group didn’t support the ads or help underwrite them.

“As more and more businesses understand what’s going on [at the chamber], the more they’re saying ‘That’s not us,’” said Frank Knapp, president and CEO of the South Carolina Small Business Chamber of Commerce and vice chairman of an alternate business group dubbed the American Sustainable Business Council that purports to represent 100,000 businesses. “They do not represent the interests of the majority of small businesses in this country.”

The tension isn’t limited to small or progressive businesses. Corporations such as Apple Inc. and Exelon Corp. dropped their membership in the chamber after its leaders opposed Environmental Protection Agency climate regulations. More recently, Yahoo left the chamber after its campaign to back anti-piracy legislation.

Liberal activists are pressing for more defections. MoveOn.org and a group called Sum of Us have mounted campaigns, so far unsuccessful, to get Toyota Motor Corp. and Google to leave the chamber. A growing shareholder movement aimed at improving disclosure of political expenditures, including the money companies spend through trade associations, could bring more unwanted exposure.

“In many cases, the large companies provide the most significant amount of funding” to the chamber, said Bruce Freed, president and founder of the Center for Political Accountability, which has played a lead role in the push for corporate disclosure. “Will they continue to give the chamber the leeway that it has, or will the companies become more assertive?”

 

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