If the label presents them with a contract that the band don't want to sign all the label has to do is wait. There are a hundred other bands willing to sign the exact same contract so the label is in a position of strength.
I think it's a good thing for a president or political leaders to want to put their values or their faith into action. Desmond Tutu did that in South Africa. Martin Luther King Jr. did that here. This is a good thing.