VideoCorporate Political Responsibility Taskforce

Corporate Political Influence Today

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On February 10, 2022, we spoke with Adam Winkler, UCLA law and Vikramaditya Khanna, Michigan Law to explore “CPR & The History of Corporate Political rights.”

When we talk about the rights and power of corporations to exert in politics, it can be tricky and complicated because allowing corporations to vote could be a double-edged sword. To influence government policies, corporations spend the most expenditures in regulation and enforcement. Sometimes corporations do realize the misalignment of their activities and try to do well, but corporations often face challenges. Thinking about how to pass the information to people who have incentives to change the misalignment would be the key.

In this module, we explore:

  • Why can’t corporations vote?
  • How legal changes and other trends have impacted corporate political influence in practice?

The Corporate Political Responsibility Taskforce (CPRT)’s Expert Dialogues are in-depth, recorded conversations with academic experts, stakeholder advocates and business practitioners to provide our members and other CPR champions with the expertise and context they need to develop principled, proactive CPR strategies. We invite those interested in a constructive, non-partisan, principles-based discussion.

KEYWORDS: #CorporatePoliticalResponsibility #ESG #CivicEngagement #Democracy

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VideoCorporate Political Responsibility Taskforce
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WebsiteCivic Alliance

Civic Alliance assembled a robust playbook for companies to more representatively support a strong democracy. The playbook includes concepts to support one’s business case, questions to ask oneself in building an action plan, and concrete steps to better engage employees, consumers, and other stakeholders.

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ReportPolicyLink

This report argues that the private sector has an indispensable and influential role in achieving a future free of racial and economic inequality in the US. Outlines guidelines to help business leaders and stakeholders articulate the need for corporate priorities on equity.

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ArticleHarvard Business Review

Strine and Lund argue that political spending hurts shareholder interests because it increases risks, is not transparent, and correlates with lower financial performance. They make the case that companies should either end all spending, obtain shareholder consent, or limit expenditures to PACs (which are strictly voluntary and have mandated disclosure).

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ReportEuropean Financial Reporting Advisory Group (EFRAG)

ESRS G1 sets mandatory disclosure requirements on business conduct, covering corporate culture, supplier relationships, anti-corruption and bribery, whistleblower protection, political influence and lobbying, and payment practices, especially toward SMEs. It links governance and conduct to impact, risk, and opportunity management, making companies explain how business behavior supports transparent, sustainable practices for all stakeholders. 

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ReportBeneficial State Foundation

The Equitable Bank Standards define a comprehensive framework for banks across five areas: governance, lending and investments, products and services, operational practices, and corporate citizenship. They lay out concrete standards for maximizing positive social and environmental impact while minimizing harm, guiding bankers, regulators, advocates, and customers in assessing whether finance advances equity and community well-being.

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