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Charting the Course for Business Political Involvement Since 1963

2011-2012 MARKET RESEARCH REPORT FOR BIPAC

INTRODUCTION 2011-2012 BIPAC Market Research Report Moore Information, Inc. of Portland, Oregon, performed BIPAC’s third biennial Market Research Report. The nationally known research firm conducted an online survey among employees of BIPAC’s member companies around the United States, specifically those with Prosperity Project® (P2) websites. Through P2, BIPAC provides participants with tools, strategies and infrastructure for communicating pro-prosperity messages to employees or members. The more than 500 responses represent a variety of industries, of diverse organizational size and geography and measure use of tools, issue and political awareness, as well as respondent involvement in political activities.

BIPAC is an independent, nonpartisan organization whose membership is compiled of businesses and business associations. Among other activities, BIPAC provides its members with factual information about key political issues likely to have an impact on the business community. In turn, members provide this information (such as voting records) to employees or constituents, usually through a P2 affiliated Government Affairs website or activity.

KEY FINDINGS Lessons learned from the 2012 research report. :: Employers continue to be the most credible source for

information, followed distantly by political parties and labor unions. Of seven internet sources ranked by credibility, employer or association websites are rated number one among employees.

:: An overwhelming number of respondents say they find employer-provided information useful and more than one- quarter say the information was not only useful in making their voting decisions, but made them more likely to vote.

:: Respondents say their awareness of, and involvement in, the political process increased after receiving information from their employer.

:: With 37% saying they visit their employer or association’s website for political information, it remains the third most used source for employee political information.

:: Employee involvement encourages early voting, which rose from 15% in 2010 to 32% in 2012.

:: There remains no negligible downside to employer communication efforts. Only 8% find the information of little or no value and just 1% view it negatively, consistent with past year studies.

1 l l BIPAC 2011-2012 MARKET RESEARCH REPORT

CHARTING THE COURSE FOR BUSINESS POLITICAL INVOLVEMENT SINCE 1963 l l 2

CREDIBILITY The employer is three times more credible than any other source. :: Studies consistently find employees rank their employer

as the most credible source of information about political issues and elections affecting their job, company, and industry, climbing to 35% in 2012.

:: The 12% who cite political parties and the 1% who cite labor unions is unchanged since 2010.

:: There is a direct correlation between employees who visit their Government Affairs website and how credible they find their employer. As website use increases, so does employer credibility.

:: Sixty-one percent (61%) of employees who visit their Government Affairs website once a week say their employer is the most credible source of information.

:: Younger employees are more likely to find their employer credible than are older employees.

:: For those who rank their employer as the most credible source for information, 35% say federal debt/deficit is the most important issue.

16%

12%

35%

LABOR UNIONS

SELF/OWN RESEARCH

POLITICAL PARTIES

MEDIA/NEWS

YOUR EMPLOYER35%

16%

12%

BY GENDER MEN WOMEN

YOUR EMPLOYER 35% 36%

POLITICAL PARTIES 10% 16%

MEDIA/NEWS ORGANIZATIONS

13% 8%

SELF/OWN RESEARCH 11% 7%

OTHER 31% 33%

BY AGE 18-34 35-54 55+

YOUR EMPLOYER 43% 36% 32%

POLITICAL PARTIES 13% 13% 11%

MEDIA/NEWS ORGANIZATIONS

11% 10% 12%

SELF/OWN RESEARCH 11% 10% 7%

OTHER 22% 31% 38%

GOVERNMENT AFFAIRS WEBSITE USE ONCE A WEEK ONCE A MONTH ONCE A QUARTER NA/OTHER USE

YOUR EMPLOYER 61% 44% 48% 21

POLITICAL PARTIES 7% 11% 12% 15%

MEDIA/NEWS ORGANIZATIONS 8% 5% 8% 12%

SELF/OWN RESEARCH 4% 8% 7% 12%

OTHER 20% 32% 25% 37%

Who do you find is the most trusted source for information?

Which of the following organizations do you feel provides the most credible information on political issues and elections that affect your job, company, and industry?

Based on the frequency of use of your employer or association’s Government Affairs website, who do you find to be the most trusted source of information?

3 l l BIPAC 2011-2012 MARKET RESEARCH REPORT

Where do employees go for political information? :: Thirty-seven percent (37%) of employees visit their employer

or association’s website, an increase of 9% over the 2010 survey. Only national media and newspapers are used more for political information than employer-provided information.

:: Younger employees (age 18-34) and those employed at smaller companies are the most frequent Government Affairs website users.

:: Newer employees are the most frequent users, with 48% of them visiting their employer’s website once a week.

ONCE A WEEK

ONCE A MONTH

ONCE A QUARTER

NA/ RECEIVED VIA OTHER

ALL VOTERS 14% 16% 26% 33%

AGE 18-34 27% 8% 30% 24%

35-54 9% 21% 28% 31%

55+ 18% 13% 22% 37%

EMPLOYMENT LEVEL

MID-LEVEL 15% 12% 30% 31%

SENIOR EMPLOYEE 17% 19% 25% 30%

MANAGEMENT 10% 21% 27% 28%

EXECUTIVE 14% 12% 16% 48%

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82% NATIONAL MEDIA OUTLETS

67% NEWSPAPER

37% EMPLOYER OR ASSOCIATION WEBSITE

27% POLITICAL CANDIDATE WEBSITE

22% BLOGS

20% SOCIAL MEDIA SITES

16% POLITICAL PARTY WEBSITE

5% POLITICAL INTEREST WEBSITE

1% FACT CHECKING WEBSITE

1% RADIO

How often do you use your employer-provided information via your employer’s Government Affairs website?

Which internet sites do you visit for issues, candidate, and/or eleciton information?

CHARTING THE COURSE FOR BUSINESS POLITICAL INVOLVEMENT SINCE 1963 l l 4

COMMUNICATING WITH EMPLOYEES Employer communication works. Thirty-two percent (32%) of respondents say that employer communication increased their involvement while only 1% say information from their employer has decreased their level of involvement.

:: Eighty percent (80%) of employees are either satisfied with the amount of information they receive or want more.

:: When employees are given options about ways their employer can communicate with them, a majority (51%) say they would like a weekly or monthly update on issues. This is preferred by more than a two-to-one margin over more email information and better than three-to-one over small group events or more in-person meetings.

:: Communications with employees should be organized, pertinent and focused.

:: Less than one-in-five employees do not positively respond to employer-employee commincations.

Which one of the following statements best describe your opinion on employer information that you receive regarding how government and political issues impact your job, company and industry?

0 50 100 150 200 250 300

Which of the following activities would you like to see your employer undertake with regards to communication about issues? (multiple answers)

I DO NOT WANT TO RECEIVE INFORMATION FROM MY EMPLOYER

I AM SATISFIED WITH THE AMOUNT OF INFORMATION I RECEIVE FROM MY EMPLOYER

I WANT MORE INFORMATION FROM MY EMPLOYER

24% SEND MORE EMAIL INFORMATION

25%

19%

55%

12% HOLD MORE IN-PERSON MEETINGS

14% CONDUCT SMALL GROUP EVENTS

11% SEND LESS EMAIL INFORMATION

51% COMPILE A WEEKLY/MONTHLY UPDATE

I DO NOT WANT TO RECEIVE INFORMATION FROM MY EMPLOYER

I AM SATISFIED WITH THE AMOUNT OF INFORMATION I RECEIVE FROM MY EMPLOYER

I WANT MORE INFORMATION FROM MY EMPLOYER

5 l l BIPAC 2011-2012 MARKET RESEARCH REPORT

INVOLVEMENT Seventy-five percent (75%) of employees find the information provided by their employer useful! :: More than one-quarter (26%) of respondents say employer

information made them more likely to vote. It also provided useful information on which they could base a decision.

:: Another 37% say that although the information didn’t make them any more likely to vote, they did find the information useful.

:: Respondents who receive information are moved to take action, especially in contacting a legislator, but also in participating in the political process, donating to candidates and even supporting particular candidates.

:: Most respondents are most likely at a point where they would already be registered to vote. However, a few respondents cite that employer communications has “directly led me to register to vote.”

:: These responses clearly show that employer communication results in direct, positive action that can influence the political debate as well as the issues and election outcomes that affect a company’s bottom line.

To what degree has your involvement and/or awareness in the political process changed since receiving information on issues from your employer?

DECREASED

STAYED THE SAME

INCREASED60%

32%

Which one(s) of the following statements reflects what impact employer provided information has had on your actions?

THE INFORMATION MY EMPLOYER PROVIDES HAS DIRECTLY LED ME TO SEND A LETTER TO MY LEGISLATOR

THE INFORMATION MY EMPLOYER PROVIDES HAS DIRECTLY LED ME TO REGISTER TO VOTE

THE INFORMATION MY EMPLOYER PROVIDES ME HAS DIRECTLY LED ME TO DONATE MONEY FOR ANY POLITICAL REASON

THE INFORMATION MY EMPLOYER PROVIDES HAS DIRECTLY LED ME TO VOTE

THE INFORMATION MY EMPLOYER PROVIDES HAS DIRECTLY LED ME TO VOTE FOR A PARTICULAR CANDIDATE 29% 33% 23% 7% 57%

CHARTING THE COURSE FOR BUSINESS POLITICAL INVOLVEMENT SINCE 1963 l l 6

TOP ISSUES In 2012, federal debt/deficit tops lists of concerns. :: The federal debt/deficit is the top issue among employees.

This is a bigger concern than unemployment/jobs.

:: By almost two-to-one, Republican respondents are most concerned about the deficit (40%) and less so about unemployment/jobs (22%).

:: Democratic respondents are most concerned about unemployment/jobs (36%) followed by health care. Only 7% of Democratic respondents are concerned about the federal debt/deficit.

:: Independent respondents are split between federal debt/ deficit (24%) and unemployment/jobs (24%)

:: There is a steady increase in concern about the debt as we move up the employment level with the most concern stemming from the executive level.

:: The top two issues with men and women are federal debt/ deficit and unemployment/jobs. Men are more concerned about the debt and women about jobs.

WORKPLACE ELECTIONS

RESEARCH AND DEVELOPMENT

ENERGY SOURCES AND AVAILABILITY

COMPETEING IN THE GLOBAL ECONOMY

NATIONAL SECURITY

TAX POLICY

HEALTH CARE COVERAGE FOR EMPLOYEES

UNEMPLOYMENT/JOBS

FEDERAL DEBT/DEFICIT FEDERAL DEBT/DEFICIT 30%

UNEMPLOYMENT/JOBS 25%

HEALTH CARE COVERAGE FOR EMPLOYEES 10%

TAX POLICY 9%

NATIONAL SECURITY 8%

COMPETING IN THE GLOBAL ECONOMY 6%

ENERGY SOURCES AND AVAILABILITY 3%

RESEARCH AND DEVELOPMENT 2%

WORKPLACE ELECTIONS 1%

Which of these issues is most important to you personally?

7 l l BIPAC 2011-2012 MARKET RESEARCH REPORT

PAC ACTIVITY In 2012 awareness increases over 2010. :: In 2012 over 75% of employees know whether or

not their company has a PAC compared to 60% in 2010.

:: Less than one-quarter of employees do not know if their company has a PAC in 2012 compared to 40% in 2010.

:: Seventy-nine percent (79%)of respondents who know if their employer has a PAC find their employer to be the most credible source of information. Fifty-five percent (55%) of of these respondents want to receive more information from their employer!

DON'T KNOW

YES

YES 50%

NO 26%

DON’T KNOW 24%

To your knowledge, does your company/association have a Political Action Committee (PAC)?

VOTING DECISIONS/TRENDS The majority of employees intend to vote in this election cycle (97%). :: Elections are no longer a “one day sale.” By Election Day

almost one-third of employees may have already voted.

:: Fifty-six percent (56%) of those respondents who are planning to vote early find their employer to be the most credible source of information.

VOTE IN PERSON AT AN EARLY VOTING LOCATION/ VOTE EARLY OR ABSENTEE BY MAIL

VOTE AT THE POLLING PLACE ON ELECITON DAY

WOMENMEN

TOTAL RESPONDANTS

NO ANSWER / OTHER

SELF/OWN RESEARCH

MEDIA / NEWS ORGANIZATIONS

POLITICAL PARTIES

YOUR EMPLOYER

317

214

111

68%

32%

VOTE AT THE POLLING PLACE ON ELECITON DAY

VOTE IN PERSON AT AN EARLY VOTING LOCATION/VOTE EARLY OR ABSENTEE BY MAIL

Will you....?

CHARTING THE COURSE FOR BUSINESS POLITICAL INVOLVEMENT SINCE 1963 l l 8

CONCLUSION Today, employees give their employer or association’s website the highest marks for credibility on political issues. With 51% of employees asking for a weekly or monthly update, employers have a tremendous opportunity for communicating on political issues affecting their job and family.

Increasing employee use of the Government Affairs website boots employer credibility with the employee. The 37% who say they do visit their employer or association website is significantly higher than the 28% who said they did so in the 2010 survey. This is also higher than those who say they visit political candidates’ websites, blogs, social media sites or political party websites.

This survey shows no reason for there to be any concerns that employer communication with employees on political issues could adversely affect voting behavior. More than one-quarter of respondents (26%) say that employer provided information makes them more likely to vote AND provides useful information.

In a world of Facebook, Super PACs, and a 24 hour news cycle, the employer website is still considered the most credible source of information and that credibility is growing. BIPAC’s employer-based messaging and information are positively impacting the way its members’ are receiving information and making educated decisions.

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1963 1964 1970 1971 1972 1974 1975 1976 1984

Robert L. Humphrey is named BIPAC’s first President.

“Politics” newsletter (today’s Election Insights) is created and begins circulation twice a month.

The first candidate receives a BIPAC check.

BIPAC moves its offices from NYC to DC.

Bernadette A. Budde joins BIPAC (retiring at the end of 2012, serving BIPAC for 42 years).

BIPAC’s Washington Briefings Begin.

Watergate Scandal.

BIPAC hires first Field Staffer.

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The Federal Election Commission was established as a result of FECA.

“Politics” bi-monthly newsletter transforms into “Politi-Kit”, a monthly publication.

Nixon resigns due to Watergate Scandal; he is the only president to date that has ever resigned.

Joseph J. Fanelli becomes the second president of BIPAC.

The FEC decides on the Sun Oil PAC request that is widely credited with leading the explosion in the number and activity of corporate PACs.

BIPAC begins meeting with State Organizations/ Chambers.

3,803 PACs now exist with PAC contributions reaching $120 Million.

1963The Business Industry Political Action Committee is founded, becoming the nation’s first business-focused PAC.

The Federal Election Campaign Act (FECA) is passed establishing fundamental federal campaign laws and officially creating political action committees.

Voting Age is changed from 21 to 18.

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Charles S. Mack becomes BIPAC’s third president and CEO.

BIPAC launches its issues and candidate databases.

BIPAC launches United for State Action, which lays the groundwork for BIPAC’s state network today.

The Berlin Wall falls.

BIPAC’s Action Fund supports no incumbent members of Congress in this pivotal election. Instead, because of its belief that change was possible, BIPAC deliberately embarks on a strategy to help only challengers and open seat candidates in House races—the only business PAC to engage in such risk-taking behavior. Of the 90 candidates that BIPAC supports, 58 are elected—a 64% success ratio.

“Politi-Kit” is reinvented as Election Insights, a weekly newsletter that is distributed electronically today.

The Honorable, Gregory S. Casey becomes the fourth president and CEO of BIPAC.

The P2 Steering Committee is formed.

BIPAC established a PAC Council to develop and implement programs designed to enhance the effectiveness of the business PAC community.

The Prosperity Project (P2) is born consisting of web services and tools forming a concentrated effort to mobilize the business community.

The Outline for Prosperity is created to layout the issues that will ensure future economic growth for all Americans.

P2 is comprised of 50 participating companies and associations, delivers 1.5 million messages, and provides 147,000 voter forms.

BIPAC develops the State Prosperity Project program, designed to focus on state issues and candidates, driving more voters to the polls and achieving greater success for business issues at all levels.

9/11 Attacks

P2 is comprised of 184 companies and associations, delivers 11 million messages, and provides 348,000 voter forms.

BCRA (Bipartisan Campaign Reform Act) is passed.

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2013

Alabama becomes the first state to pass a Voter ID Law. (As of 2012, 30 out of the 50 states have passed Voter ID Laws).

The Prosperity Fund (PFund) is formed and begins building a sophisticated state advocacy network around the Prosperity Project (P2) grassroots system, giving that network the capability to target and fund activities state by state.

The PFund Leadership Team is formed.

Nine states become official State P2 Deployment Partners.

BIPAC provides more voter forms in the state of Ohio than the margin of victory for the Presidential election in that critical state.

P2 is comprised of 914 participating companies and associations as members, delivers 40 million messages, provides 1.69 million voter forms, and sends 286,000 letters to policy makers.

BIPAC advances comprehensive long-term strategy to establish and support P2 deployment Partner entities in state.

P2 is comprised of 1,628 participating companies and associations, delivers 57 million messages, provides 1.99 million voter forms, and sends 1.14 million letters to policy makers.

The 5,091 PACs in existence spending $1.055 Billion.

The Cornerstone Initiatives print piece is created. This piece is meant to support BIPAC’s members’ education and awareness efforts prior to Election Day messages on key business issues.

BIPAC’s network of Deployment Partners grows to more than 25 states.

P2 is comprised of 3,764 participating companies and associations, delivers 107 million messages, provides 2.10 million voter forms, and sends 1.2 million letters to policy makers.

BIPAC launches the Database Management level of membership as part of their P2 offerings, providing companies and associations the ability to manage data, select recipients, conduct advocacy and track results.

BIPAC becomes the first political organization to buy out YouTube’s ad space, having their message viewed over 56 million times on Election Day.

Access Point names BIPAC Political Programs one of the five “Best of the Best Programs” in 2010 for its innovation in communication initiatives.

The US Supreme Court, other courts, and FEC actions allow for Super PACs to be formed; this allows corporations and unions to directly finance independent campaign expenditures. During the 2010 election cycle, 84 super PACs spend $65,326,957.

P2 is comprised of 5,308 participating companies and associations, delivers 197 million messages, provides 2.20 million voter forms, and sends 1.91 million letters to policy makers.

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BIPAC celebrates 50 years of powering

business political success.

BIPAC collaborates with more than 40 state and local Deployment Partners throughout the country

BIPAC launches The Summit Project—a secure, robust, state by state voter database with enhanced data.

BIPAC adds “Super PAC” to its menu of activities.

After 42 years of service, Bernadette A. Budde retires.

50 184 914 1,628 3,764 5,038

PARTICIPATING COMPANIES AND ASSOCIATIONS

1.5 Million 11 Million 40 Million 57 Million 107 Million 197 MillionMESSAGES DELIVERED

147,000 348,000 1.69 Million 1.99 Million 2.10 Million 2.20 MillionVOTER FORMS PROVIDED

N/A N/A 286,000 1.14 Million 1.2 Million 1.91 MillionLETTERS TO POLICY MAKERS

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P2 GROWTH 2000 2002 2004 2006 2008 2010

The Prosperity Project grassroots program, known as P2, helps build on existing relationship to inform employees, shareholders and association members about the issues affecting them, their industries and American prosperity.

The Prosperity Project (P2) consists of web services and tools forming a concentrated effort to mobilize the business community.

Velita quis reratis ipsandis aut ped qui alite alia si vel ium debit, omnimpore ex et

The Prosperity Project (P2) consists of web services and tools forming a concentrated effort to mobilize the business community.

50 184 914 1,628 3,764 5,038

PARTICIPATING COMPANIES AND ASSOCIATIONS

1.5 Million 11 Million 40 Million 57 Million 107 Million 197 MillionMESSAGES DELIVERED

147,000 348,000 1.69 Million 1.99 Million 2.10 Million 2.20 MillionVOTER FORMS PROVIDED

N/A N/A 286,000 1.14 Million 1.2 Million 1.91 MillionLETTERS TO POLICY MAKERS

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P2 GROWTH 2000 2002 2004 2006 2008 2010

BIPAC | 888 16th Street NW, Suite 305 | Washington, D.C. 20006

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