Request to Disclose Corporate Political Spending

In wake of the Supreme Court’s recent decision in Citizens United v. Federal Election Commission where it removes most restrictions on corporate political spending, the Center for Political Accountability and the Council of Institutional Investors, joined by nearly 50 institutional investors and shareholder advocate groups have sent letters to companies in the S&P 500 Index to “disclose all political contributions they make with corporate funds.” Institutional investors that co-signed the letter included the California Public Employees’ Retirement System, New York State Common Retirement Fund, New Jersey State Investment Council and Amalgamated Bank.

The letter requests that companies begin to adopt certain best practices in corporate political disclosure and accountability including:

1.    policies and procedures for board approval and review of corporate political spending; and

2.    annual public disclosure of all corporate political expenditures, including contributions made with corporate funds and payments to trade associations and other tax-exempt organizations that are used for political purposes.

Moreover, the Council of Institutional Investors is calling “on boards to monitor, assess and approve company political contributions, and to develop and disclose publicly, on an annual basis, the amounts and recipients of all monetary and non-monetary contributions.”