Since 2004, when I wrote a story for FORTUNE called Money and Morals at GE , I have been an admirer of General Electric and its CEO, Jeff Immelt. My admiration deepened when GE unveiled EcoMagination, its effort to solve important environmental problems. Immelt and GE also led the U.S. Climate Action Partnership, an alliance of big business and big NGOs committed to getting the government to regulate greenhouse gas emissions.
But -- and you knew there’d be a but, didn’t you? -- I’ve got a couple of questions about GE and Immelt that have been nagging at me. First, has GE become overly focused on Washington? Second, when will Immelt deliver for GE shareholders?
The first question was prompted by an aside in John Harwood’s column in The Times a week ago, about the Obama administration’s all-out effort to get Ben Bernanke confirmed as Fed chief. He wrote:
The investor Warren Buffett and Jeffrey R. Immelt, the chairman of General Electric, helped contact senators, a senior official said.
There’s nothing wrong with this, of course; Immelt has the right to ask senators to support Bernanke. But it reminded me that this registered Republican and his company have closely aligned their interests with the administration. Immelt serves on the president’s Economic Recovery Advisory Board. Newly-released figures show that among big companies or unions, GE was second only to Exxon Mobil in lobbying expenses during 2009, spending $21.4 million. (Other sources put the figure higher.) This isn’t a surprise–GE is a huge company (2009 revenues were $156 billion) and it has a myriad of Washington interests, including taxes, trade, energy policy and financial regulation.
But there’s more. GE’s Washington operation is a case study in Washington’s revolving door. Nancy Dorn, who runs the office, worked for Dick Cheney at the Pentagon and the White House and was deputy director of the Office of Management and Budget during Bush II. At OMB, she suceeded Sean O’Keefe, who became NASA administrator and is now vice president, Washington operations, for GE Aviation. GE also has Linda Hall Daschle, wife of former Senate Majority leader Tom Daschle, lobbying on its behalf. Meanwhile, Mr. Daschle is on the board of advisors to GE’s HealthyMagination initiative.
Last summer, a leaked email from GE Vice Chairman John G. Rice, soliciting donation’s to GE political action committee, laid out the GE-DC connections. According to Steve Milloy, a right-of-center anti-environmentalist who obtained the email, Rice wrote:
The intersection between GE’s interests and government action is clearer than ever.
GEPAC is an important tool that enables GE employees to collectively help support candidates who share the values and goals of GE. [emphasis added]
On climate change, we were able to work closely with key authors of the Waxman-Markey climate and energy bill…If this bill is enacted into law it would benefit many GE businesses.
And so forth. You won’t be surprised to learn that GE’s “values and goals” were more aligned with Republicans betwen 2000 and 2008, when most of its donations went to the GOP. Now they mostly go to Democrats. To be sure, this business-as-usual in Washington, but it’s revealing.


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GE and Washington
Dear Marc Gunther,
I skim through your article "GE and Washington: Too cozy?” As I was
reading all I could think about was all of the individuals GE laid off
during the time I was working for a company they acquired (Bought out). One particular company was one that I worked for about 10 years before being laid off. I was recruited back several years later
because their only other Hardware Engineer left due to the conjecture of lay-offs and shutting down the manufacturing plant in California. It took the position for a little over a year with GE, the product was 24-Hour manned security access systems. GE offered others and myself jobs in Florida but with no guarantees that we would not get laid-off there, as did others. So we turned them down, most of
us had family and homes, why uproot with no guarantee.
It is great that GE has gone green, but it would be better if they produced more reliable products especially in their appliance group. I feel that greed has cause them to be involved in too many brands and this cause them to put out very inferior products.
It is truely sad that we have so many corrupt companies and individuals within these companies that see only the green they
make (monetary) and not the workers they are destroying.
SisNo6