More than two-thirds of US corporations, 78%, describe the current political environment as extremely challenging or very challenging, a significant shift from the 47% reported in a similar survey conducted in 2021, according to a new survey by The Conference Board ESG Center.

The poll, which included responses from 100 government relations executives and chief legal officers, found that 42% expect the political landscape to become even more challenging in the next three years.

The top factors contributing to the challenging environment include extremism/polarization among policymakers, anti-corporate rhetoric and actions from policymakers, and the use of government power for political purposes.

The report also revealed a divide in corporate America's stance on its role in improving the political environment. Nearly 30% of respondents believe corporations should take a leadership role, 30% believe a supporting role is appropriate, another 30% think corporations should play a minimal role and 7% feel corporations should not participate and focus solely on their own interests.

“The combination of a polarization among policymakers, coupled with extremely close elections, means that companies are facing potentially wide swings in government policy with each election, which is not conducive to business planning and investment,” said Paul Washington, executive director of The Conference Board ESG Center. “At the same time, many companies are understandably hesitant to speak out about certain issues because they can be attacked for going too far or not far enough. In this environment, look for companies to focus on areas where there can be little objection: promoting voter registration and participation in elections, as well as supporting policymakers who focus on problem-solving.”

The Conference Board survey was conducted between October and December 2022. Of the participants, more than half are from companies with over $10 billion in annual revenue, and over one-third are from companies with more than $25 billion in annual revenue.