Hubbard Broadcasting of St. Paul, Minn., is among the first corporations to use the U.S. Supreme Court ruling in Citizens United vs. FEC that allows them to make campaign-related contributions.
But is it causing a conflict of interest for its television stations as they cover the ongoing governor's race and other political campaigns?
“It really raises some significant questions,” said David Brauer, media analyst for MinnPost.com. “For Hubbard to make direct contributions out of corporate money solidifies some doubts people have about Hubbard. It makes it harder to do their job.”
Adds Larry Jacobs, director of the University of Minnesota's Center for the Study of Politics and Governance: “It will raise eyebrows and a potential conflict. There is a tension between a corporate entity giving money to a candidate and its operational side maintaining the spirit and the reality of independence.”
While members of the Hubbard family have long donated individually to political groups and candidates, the corporation itself recently contributed $100,000 to the new Minnesota Forward, an independent expenditure group that is supporting several Republican and Democratic candidates.
The Citizens United ruling in January opened the door for corporations to contribute to independent expenditure groups, which can run campaigns to support or oppose individual candidates. The expenditure groups, however, cannot give money directly to candidates.
The Minnesota Chamber of Commerce subsequently filed its own lawsuit against the state's campaign expenditure limits, leading to a federal judge's decision in May that formally allowed the corporate contributions in Minnesota.
In addition to Hubbard Broadcasting, Minnesota Forward has also received similar donations from Target, Polaris and Best Buy.
Target recently apologized for its donation after it drew protests from some employees and gay rights groups who oppose Minnesota Forward's support of gubernatorial candidate Tom Emmer, who opposes gay marriage.
Emmer faces his first test in today's Republican primary.
The Hubbard contribution, meanwhile, has already drawn concern about how its media outlets cover the campaign, particularly flagship station KSTP-TV in St. Paul.
As part of its coverage, KSTP runs a fact-checking report, Truth Test, in which it reviews the facts of political ads and grades them similar to a school report card.
A July 21 Truth Test on a Minnesota Forward ad supporting Emmer resulted in a B+ grade for the spot. While the report itself did not mention the Hubbard ties to the independent expenditure group, an anchorman noted it immediately after it aired.
MinnPost reports that the station did not mention its ties to Minnesota Forward at all when it ran an earlier story about the new Emmer ad. MinnPost quoted KSTP News Director Lindsay Radford as stating the station “should have disclosed” the link.
Some journalism ethicists said Hubbard's direct contributions raise concerns.
“I wouldn't do it, people in my organization wouldn't do it because of the conflict,” said Rick Edmonds, a business media analyst at The Poynter Institute, which owns the St. Petersburg Times. “You have enough people who think the media is unfair. That kind of action at least potentially contributes to it.”
Tom Rosenstiel, director of the Project for Excellence in Journalism, agreed.
“It has been a source of controversy if individuals who are officers in media companies make political contributions,” he told me. “But the argument has been that the people are still citizens and what they do privately might not influence what newsrooms are doing.
”It is more complicated and a new issue now when it is not a citizen but a company. Is it a corporate policy that influences the newsroom? It is different and it raises new complications."
Star-Tribune Columnist Nick Coleman recently referred to Minnesota Forward as a “creepily named corporate campaign.”
KSTP reporter Tom Hauser, who conducts the Truth Test spots, said his owner's political ties have no impact on his reporting. “I can't control what anyone's perception is,” Hauser said. He did say that it would be less of a hassle without the potential conflict: “It would be easier, but it is not my call.”
Hubbard Broadcasting CEO Stanley Hubbard told me his corporation's donations have no impact on news coverage. “We are taking advantage of our right to have our opinion,” he told me. “It has no impact on our newsroom. I never influence anything in the newsroom.”
Asked if just the perception of conflict is bad enough, Hubbard said: “We have never had that show up in any (audience) research that it creates a conflict.” He added that, “I think Target may have overreacted.”
MinnPost, meanwhile, criticized KSTP for not revealing how much is being spent on ads it airs, noting “The issue is especially meaningful in recent days, with news (that) ... Hubbard Broadcasting, Inc. helps fund MnForward ..."