VideoCorporate Political Responsibility Taskforce

Addressing Concerns about Being Too Political

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On February 8, 2024, we spoke with Angeli Patel with the Berkeley Center for Law and Business to explore “The Business Resiliency Case for CPR.”

As businesses seek to balance shifting expectations from stakeholders ranging from investors and legal counsel to customers and employees, they’re increasingly exploring how a principled structure for political activities can help increase business resilience and sustainability. In her recent work developing more than 30 case studies on corporate sustainability, Angeli Patel has discovered three indicators of resilient businesses across industries: 1) they opt to face challenges head-on rather than wait until a moment of crisis; 2) they’re curious about and engaged with their customers, investors and employees; and 3) they bring all decisions back to long-term goals rather than immediate challenges. In this conversation, we’ll discuss how corporate political responsibility factors into sustainability and can be a tool companies use to enhance these indicators of resilience.

In this module, we explore:

  • What lessons should companies take from concerns about getting too political?
  • Are there concerns about fiduciary duty?
  • Where is the firmest ground for companies to stand?

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 discussions

Angeli Patel is the Executive Director of the Berkeley Center for Law and Business. Previously, she was an attorney in the Sustainability & ESG Advisory Practice at Paul, Weiss, Rifkind, Wharton & Garrison LLP in San Francisco where she advised clients on the governance of climate and social risks, and a Lecturer at Berkeley Law. Prior to her legal career, Angeli served at the White House Office of Management and Budget under the Obama Administration and served as a policy advisor at the U.S. Department of Health and Human Services on consumer privacy.

Keywords: #CorporatePoliticalResponsibility, #CPR_Enterprise Risk, #CPR_FiduciaryDuty, #CPR_Legitimacy

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ArticleBCG Henderson Institute

This note acknowledges the increased pressure on business to engage in politics and counsels corporate restraint.

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ReportBusiness for America

To better understand how businesses are navigating this toxic political environment, Business for America (BFA) surveyed more than 50 business leaders across the country and sectors, from Fortune 500 executives to small business owners. The report reveals widespread concern about escalating political backlash, highlighting the difficult balance companies face between stakeholder demands and risks like boycotts, speech restrictions, and regulatory threats.

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VideoCorporate Political Responsibility Taskforce
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An overview of the need for CPR and how the Erb Institute’s Corporate Political Responsibility Taskforce supports companies in aligning their approaches to political influence with their commitments to purpose, values, sustainability and stakeholders, while contributing to rebuilding trust in US civic institutions. 

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ArticleProMarket

This article argues that corporate governance need to take account of a company's political responsibility and that the Erb Principles provide a helpful framework for doing so. 

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This article argues that "corporations were never supposed to write the rules of the game. Now they need to help make them better for capitalism to survive."

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WebsiteHarvard Law School Forum on Corporate Governance

This post summarizes the Center for Political Accountability’s Guide to Corporate Political Spending, which provides best practices for implementing the CPA-Zicklin Model Code. The Model Code identifies a company’s broader societal and democracy obligations and responsibilities that should govern its political spending decisions. This new Guide spells out what concrete steps and actions management should follow as it makes spending decisions and evaluates the accompanying risks. 

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VideoCorporate Political Responsibility Taskforce
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This tracker provides an overview of federal and state investigations into corporate ESG practices, highlighting lawsuits over misleading ESG claims by firms like BlackRock, government probes requesting information from asset managers and climate organizations, and legislative efforts aimed at limiting ESG considerations in investing. It offers essential insight into the shifting legal and reputational risks companies face in ESG governance.

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This guide provides a good overview of how the current environment developed for companies and some tips that business leaders can use to navigate through the conflicting pressures.

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ReportHarvard Law School Forum on Corporate Governance

This report explores the financial impacts of growing political instability in the U.S., emphasizing how shifts in policy and governance affect corporate decision-making, risk assessment, and long-term value. It outlines the importance of aligning business strategies with evolving political landscapes to protect financial interests. 

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This report argues free enterprise supports both individual prosperity and societal well-being, advocating for competitive markets over government intervention to ensure long-term economic growth.

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ToolClimate-lobbying.com

This framework guides companies to align lobbying with climate goals, focusing on transparent reporting, board oversight, and annual reviews to support efforts to limit global temperature rise to 1.5°C.

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This report outlines how corporate greenwashing tactics have become more sophisticated, shifting from exaggerated claims to subtler misrepresentations and legal obfuscation. It highlights emerging regulatory gaps, critiques industry self-regulation, and calls for more robust public accountability frameworks to ensure environmental claims align with actual business practices. 
 

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