The role of corporations in politics has changed dramatically. The result is that corporations have no formal political spending disclosure regime, while unions have many stringent disclosure requirements. These methods can reveal possible management weaknesses before they damage shareholder value. CPA Reports. Ironically, an overwhelming majority of directors possesses little knowledge of the rules and regulations governing corporate political activity. The following one-page information sheet corrects them. It recognizes that companies will want to fashion their political spending strategies to fit their individual needs. Support by mutual funds for the Center for Political Accountability’s corporate political disclosure resolution jumped significantly in 2017, to 48 percent from 43 percent in 2016, according to an analysis by Fund Votes. The mission of the Center for Political Accountability (CPA), a non-profit, non-partisan 501 (c) (3) organization, is to encourage corporations to adopt disclosure of their electoral spending and to promote responsible oversight practices and accountability policies. Through them, corporations spend millions of dollars on political activities that can ultimately lead to a decline in shareholder value and compromise the reputations of corporations and their leaders.

Center for Political Accountability, Washington D. C. 309 likes. A company that effectively discloses its political spending builds trust among shareholders and financial analysts. CPA is achieving results by directly engaging companies to improve disclosure and oversight of their political spending with corporate funds. The report then offers a model code of conduct that draws on the best practices in current company codes.

In an important milestone, a majority of mainstream mutual funds voted for the first time either ‘For’ or ‘Abstain’ on the Center for Political Accountability’s model political disclosure resolution in the recently concluded 2010 proxy season. Trade associations have become the Swiss bank accounts of American politics. This CPA Report provides a guide on how to manage corporate political spending in a risky new environment. This continues an eight year trend of increasing support. Business leaders are educated on how to avoid the business and reputational risks that come with undisclosed political spending. [1] Funds in 25 different families voted on the resolution at 28 companies.[2]. The elections are over, but the aftereffects of all those negative ads linger, both for shell-shocked TV viewers and for corporate donors that gave millions to put the thirty-second spots on the air. CPA's research focused on six state-focused political committees, several of which reshaped state and national politics and policy. Disappointingly, opposition also grew fractionally with a slight decrease in abstentions. Donate. The largest mutual funds’ support for the Center for Political Accountability’s corporate political disclosure resolution continued to steadily rise in 2019, to 56.0 percent from 52.7 percent in 2018 according to analysis based on the Morningstar Fund Votes Database. Mutual funds’ support for corporate political disclosure reached a new high in 2013, according to a ten-year analysis by the Center for Political Accountability. It found that these fund families supported corporate political disclosure about 34 percent of the time in 2012, on average, compared with 35 percent in 2011. Corporations (pdf), The Conference Board Review: Navigating Politics (pdf), Political Spending: Big Risk for Boards (pdf), 2013 PROXY SEASON ANALYSIS: MUTUAL FUND SUPPORT HITS NEW HIGH (pdf), Reality Check on Arguments Against Disclosure (pdf), The Importance of Educating Future Business Leaders Post-Citizens United (pdf), The Conference Board Review: Dangerous Terrain (pdf), 2011 PROXY SEASON ANALYSIS: Mutual Fund Support Reaches a New High in 2011 (pdf). These risks extend to a company’s reputation, its employee relations, its customer and shareholder relationships, its legal footing, and attainment of its business strategies. More than ever, it is the directors’ responsibility to determine when and how their company should engage in political activities. Mutual funds’ support for corporate political spending disclosure reached a new high in 2011. 205 Mutual funds’ support for corporate political disclosure dipped slightly in 2012 from its record high in the previous year, according to an analysis by the Center for Political Accountability. Washington, DC 20036, Political Spending and Unintended Consequences, 2014 PROXY SEASON ANALYSIS: WIDER REVIEW SHOWS HIGHER SUPPORT (pdf), Political Spending Disclosure Rules: Unions vs. Hidden Riversuses case studies of hotly-contested judicial elections to show how corporations, via trade associations and other tax exempt organizations, expended resources on candidates who held views inimical to company values. Our contention is no. It explores the proliferation of the initiative in American politics as a means of polarizing and galvanizing voters, and takes a close look at how initiative campaigns have become the beneficiaries of corporate cash. Forty large US mutual fund families voted in favor of corporate political spending disclosure an unprecedented 39% of the time, on average. 205 CPA Reports Political Spending and Unintended Consequences Database Sign Up For Our Newsletter.