Because the Socialist Party no longer sponsored candidates in Presidential elections, continued use of the name "Party" was "misleading" and hindered the recruiting of activists who participated in the Democratic Party, according to the majority report. The name "Socialist" was replaced by "Social Democrats" because many American associated the word "socialism" with Soviet communism. Moreover, the organization sought to distinguish itself from two  small Marxist parties.
The Socialist Party's lack of Presidential candidate sponsorship, along with its continued use of "Party" being deemed misleading and hindering recruitment efforts by activists who participated in the Democratic Party, led to a majority report recommending the name change. The replacement of "Socialist" with "Social Democrats" was due to American associations of the word "socialism" with Soviet communism. Additionally, the organization sought to differentiate itself from two small Marxist parties.