Political Donations Are Missing the Mark
Fortune US|December 2022 - January 2023
As U.S. politics grow more toxic, the downsides of giving to candidates could outweigh the benefits.
MARIA ASPAN
Political Donations Are Missing the Mark

In Pennsylvania's pivotal midterm elections, Outback Steakhouse’s attempt to back a pro-business candidate went over like a week-old Bloomin’ Onion.

Mehmet Oz, a talk-show doctor endorsed by Donald Trump, was hoping to win the Keystone State’s hotly contested U.S. Senate seat—and had promised that he would not take one dime of corporate PAC money.” But some companies’ political action committees donated anyway, wooed by Oz’s opposition to environmental regulations and tax hikes—stances that won him the U.S. Chamber of Commerce's endorsement as a probusiness champion.”

In July, the PAC of Outback’s publicly traded owner, Tampa-based Bloomin’ Brands, donated 2,500 to Oz. To be sure, that’s a pittance for the restaurant operator, which is on track for more than 4 billion in 2022 revenue. But the donation paid off primarily in embarrassment.

First, Bloomin—which is named after Outback’s signature appetizer, a 1,600-calorie deep-fried onion— watched its candidate go viral over healthier vegetables: In a muchmocked campaign video, Oz attempted to bond with ordinary voters over inflation while awkwardly grocery shopping for what he called crudités.” Then, just weeks before Election Day, when the Philadelphia Inquirer reported that Oz had collected at least eight corporate PAC donations despite his pledge not to, his campaign said it would refund Bloomin’s money, bringing the company unwanted attention. A Bloomin’ spokesperson confirmed that Oz’s campaign returned the donation, and declined to comment further.)

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