Master Plan Podcast Summary: "From Drilled: The Big Oil Origins of Corporate Free Speech"

Podcast Information:

• Title: Master Plan
• Host/Author: The Lever
• Episode: From Drilled: The Big Oil Origins of Corporate Free Speech
• Release Date: December 3, 2024

Introduction

In the episode "From Drilled: The Big Oil Origins of Corporate Free Speech," Master Plan delves into the intricate relationship between Big Oil corporations and the establishment of corporate free speech rights in the United States. Hosted by David Sirota, the podcast explores how Mobil Oil's strategic public relations and legal maneuvers over the past five decades have shaped the modern landscape of corporate influence, ultimately contributing to the legalization of corruption and the transformation of American democracy into a kleptocracy.

Herb Schmertz and Mobil Oil's Strategic Evolution

The episode spotlights Herb Schmertz, Vice President of Public Affairs for Mobil Oil in the 1970s, whose innovative approach to corporate communication significantly influenced Mobil's public image and broader corporate strategies. Schmertz, a former military intelligence officer and labor lawyer, transitioned to Mobil Oil after working on several Democratic presidential campaigns, including those of JFK and Bobby Kennedy. His alliance with Mobil CEO Raleigh Warner marked the beginning of a sophisticated public relations campaign aimed at humanizing the oil giant and embedding its interests deeply into public policy discourse.

Schmertz pioneered what he termed "affinity of purpose marketing," a precursor to modern cause-related marketing. This strategy involved Mobil supporting cultural and educational initiatives, such as sponsoring sports events and establishing the Pegasus Prize for literary works from underrepresented countries. According to Schmertz (07:40), "The company needed to focus on ideas and issues rather than just selling gas... it needed a personality." This approach was designed to present Mobil not merely as an oil company but as a socially responsible entity invested in public discourse.

Corporate Free Speech and Legal Maneuvers

A significant portion of the episode examines Mobil Oil's role in shaping corporate free speech through strategic lobbying and legal challenges. Mobil's efforts were instrumental in laying the groundwork for the landmark Citizens United v. Federal Election Commission decision. As Herb Schmertz articulated (09:25), "Government intrusion into the marketplace of ideas would limit our freedom of speech and distort the selection of our leaders."

Mobil sought to extend its influence beyond traditional advertising by securing the right to engage in "issue advertising" and "affinity of purpose marketing" without the constraints imposed by the Fairness Doctrine, which required broadcasters to present balanced viewpoints on controversial issues. When major TV networks like ABC and CBS rejected Mobil's political advertisements, citing ethical concerns and Fairness Doctrine violations, Schmertz and Warner responded by mobilizing business groups and leveraging op-eds in influential publications like The New York Times to argue that corporate voices were essential for balanced public discourse.

Impact on Corporate Personhood and the Citizens United Decision

The podcast highlights the crucial role Mobil Oil and Herb Schmertz played in the evolution of corporate personhood—a legal doctrine recognizing corporations as individuals with First Amendment rights. This shift was first legally cemented in the early 1970s with the First National Bank of Boston vs. Bellotti case, where the Supreme Court ruled that corporations could engage in political speech. Ted Olson, former Solicitor General and corporate lawyer, emphasizes (22:18) that this ruling "allowed corporations basically a loudspeaker to amplify their voice above everybody else's," setting the stage for the massive corporate influence seen today.

Robert Kerr, a professor at the University of Oklahoma, provides deeper insights (24:13), "Mobile was one of the leading corporations to fight for that legal right," noting that Mobil's aggressive pursuit of free speech rights directly influenced the environment that made the Citizens United decision possible. This 2010 Supreme Court ruling further entrenched corporate free speech by allowing unlimited political expenditures by corporations, fundamentally altering the dynamics of American electoral politics.

Mobil's Influence on Legal Structures and Climate Litigation

Mobil Oil's strategic initiatives under Schmertz were not isolated to public relations but extended into shaping legal frameworks that would benefit the corporation's long-term interests. The episode details how Mobil's efforts in the 1970s magnified in subsequent decades, influencing key Supreme Court decisions and enabling corporations to exert significant pressure on public policy and legal outcomes. This pervasive influence has had lasting effects, particularly in the realm of climate litigation, where corporate initiatives continue to shape the legal strategies employed by fossil fuel companies to resist regulatory pressures.

Conclusion: Legacy and Ongoing Implications

"From Drilled: The Big Oil Origins of Corporate Free Speech" underscores the profound and lasting impact of Mobil Oil's public affairs strategies on American democracy. By establishing precedents that prioritize corporate interests through legal and public relations channels, Mobil paved the way for the current state of corporate influence in politics and policy. This historical analysis not only illuminates the roots of corporate free speech but also highlights the ongoing challenges in combating corporate corruption and safeguarding democratic institutions from being subverted into a kleptocracy.

Notable Quotes

• Herb Schmertz (07:15):
  "You have to find unconventional ways to communicate to the public. It's not a question of convincing the press of anything. It's a question of convincing the public."

• Herb Schmertz (09:25):
  "Government intrusion into the marketplace of ideas would limit our freedom of speech and distort the selection of our leaders."

• Ted Olson (22:18):
  "It allowed for a systematic distortion of the public space... to advocate their position in the public space."

• Robert Kerr (24:55):
  "What Schmertz and Mobil did was nobody else used the New York Times op-ed page the way they did."

These quotes encapsulate the strategic mindset behind Mobil Oil's efforts to wield influence and shape public discourse, illustrating the depth of their commitment to institutionalizing corporate free speech.

Final Thoughts

The episode serves as a compelling examination of how corporate strategies developed in the 1970s continue to reverberate through contemporary political and legal systems, particularly concerning climate action and corporate accountability. By tracing the origins of corporate free speech through Mobil Oil's pioneering efforts, Master Plan provides listeners with a nuanced understanding of the structural challenges facing democracy today.