Why Business Leaders Can’t Afford to Ignore Politics Anymore

by Rohith (Ro) Chari, Special to South Asian Herald October 20, 2025

By Rohith (Ro) Chari, Special to South Asian Herald October 20, 2025 0 comments 3 minutes read

Courtesy: Disney

I learned early in my career that politics doesn’t just shape regulation – it shapes markets. When Florida clashed with Disney, billions in shareholder value and years of corporate goodwill were put at risk almost overnight. That episode made one thing clear: for business leaders, politics isn’t background noise. It’s market-moving.

Washington now keeps an internal “ranking system” of businesses. Companies seen as friendly to the administration move up the list, often rewarded with access and contracts. Those deemed unfriendly slip down. For CEOs, the message is clear: politics is no longer optional, for better or for worse.

For decades, the safest move was to stay silent. Corporate leaders would write two checks – one red, one blue – then get back to the quarterly numbers. In the business world, politics was considered off-limits, best left to lobbyists and PACs. The most successful executives were those who kept their distance.

That playbook is gone.

Neutrality Carries Risk

The idea that businesses can float above politics is outdated. Silence is no longer insulation; it’s exposure. Disney’s experience in Florida showed that trying to split the difference leaves companies vulnerable to both regulatory and reputational risk.

Meanwhile, companies that engaged more directly have been rewarded. Palantir, once a niche data-analytics firm, secured multibillion-dollar contracts in Washington by leaning in politically, not despite politics but because of it. For many firms, politics is no longer a backdrop – it’s part of the competitive landscape.

Politics Is Capital Allocation

Sometimes politics doesn’t just change the rules; it creates the market. Consider the federal government’s decision to take an equity stake in Intel through the CHIPS Act. Washington didn’t just support an industry; it picked a winner, tilting billions of dollars toward one company and redefining American industrial policy.

Executives ignore these dynamics at their peril. A recent survey found that 90 per cent of Fortune 500 companies now maintain in-house government affairs teams. Boards increasingly expect leaders to treat politics as a factor that can reshape markets overnight.

In today’s environment, ignoring politics is like ignoring interest rates or supply-chain shocks. It’s not background noise – it directly impacts the bottom line.

Political Fluency Is Risk Management

Boards now expect executives to anticipate political shocks the way they anticipate cyberattacks or labor disputes. Government affairs can’t be treated as a side office. It must be integrated into strategy, just as compliance evolved from a back-office function into a competitive edge.

That doesn’t mean every company has to become overtly partisan. There is still room to build relationships across the aisle. But there isn’t room to avoid politics altogether. The risks – and opportunities – are simply too significant.

The Stakes Ahead

As we head toward the 2026 midterms, the turbulence will only grow. Artificial intelligence regulation, ESG disclosure rules, crypto oversight, and the next phase of industrial policy are already on deck. Each carries billions in potential upside or downside.

The question for business leaders is not whether politics should shape strategy – it already does. The real challenge is to recognize it openly, factor it into risk analysis, and engage with it constructively. Ignoring politics won’t insulate a company anymore. It will only leave it unprepared.

Disclaimer: The opinions and views expressed in this article/column are those of the author(s) and do not necessarily reflect the views or positions of South Asian Herald.