from staff
The Conference Board, a nonprofit New York-based business research group, formed a committee of Fortune 500 companies to advance issues related to disclosure and accountability of corporate political spending.
The board said its Committee on Corporate Political Spending will release a report this fall to provide corporations with resources to strengthen their governance practices in the area of disclosure and accountability.
Current member companies of the Committee on Corporate Political Spending include Campbell Soup Co., Exelon Corp. Merck & Co. Inc., Microsoft Corp., Pfizer Inc. and Prudential Financial Inc.
It is co-chaired by Dan Bross, Microsoft senior director of corporate citizenship, and Charles Grezlak, Merck vice president of state government affairs.
Outside experts in the field of corporate governance, corporate political spending and election law will serve as advisory members.
According to The Conference Board, the need for a model framework for disclosure and accountability of corporate political spending has increased since January 2010, when the U.S. Supreme Court, in the Citizens United v. Federal Election Commission decision, limited restrictions on corporate-funded political spending in federal elections.
The decision allowed companies to make independent expenditures, directly or through third parties, in support of or in opposition to candidates.
The board reported that in its wake, legislators at the federal and state level have proposed new laws requiring disclosure and, in some cases, shareholder approval of a company’s political spending.
Since the 2004 proxy season, some investors have filed shareholder resolutions to the same effect. As of May, according to the board, 85 large public companies, including 51 in the S&P 100, have voluntarily adopted disclosure of political spending with corporate funds.
In November, The Conference Board released the first “Handbook on Corporate Political Activity” to provide companies with guidance on managing and overseeing their political spending with corporate funds.
The corporate political spending committee intends to develop a set of “prevailing practices” that take into consideration the risks and opportunities of political-spending decisions, from whether to spend at all to deciding the level of disclosure, rather than a series of universal guidelines, the board said.
“We look forward to advancing the dialogue across the corporate community on issues concerning the transparency and accountability of corporate political spending — a deliberative process that should benefit all companies in addressing the needs of their stakeholders,” said Grezlak.
“Participation in the political process is a right enjoyed by corporations,” said Bross.
“The question is not the right to participate but the responsibilities associated with that right. This committee is committed to advancing a thoughtful dialogue and demonstrating, through best-practice sharing, the opportunities corporations have to enhance their commitment to corporate governance while fulfilling their responsibilities for protecting shareholder value,” he said.
In addition to a report, the board said the committee will share its findings in webcasts, conferences, and a planned Symposium on Political Spending this fall.
A regularly updated website, www.conferenceboard.org/politicalspending, will allow those interested in political spending to access resources on the topic, follow the progress of the committee, and view upcoming related events from The Conference Board.
In addition to Bross and Grezlak, the members of the committee include:
• Dave Stangis, Campbell Soup vice president, CSR/sustainability.
• Bruce Wilson, Exelon senior vice president and deputy general counsel.
• Matthew Lepore, Pfizer vice president and corporate secretary, and chief counsel of corporate governance.
• Margaret Foran, Prudential Financial chief governance officer and corporate secretary.
The Conference Board was created in 1916 as a source of economic and business knowledge.