VideoCorporate Political Responsibility Taskforce

Asset Owner Strategies & How Companies Can Prepare

Rick Alexander & Sara Murphy of The Shareholder Commons

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On July 22, 2021, we spoke with Rick Alexander and Sara Murphy of The Shareholder Commons to explore “Why Diversified Shareholders Must Mobilize to Ensure ESG Includes Corporate Political Responsibility (CPR).”

Boards, executives and investment managers are working to address evolving shareholder interest in environmental, social and governance issues. Yet few have yet focused on the particular interest that “universal owners” -- large institutional investors with diversified portfolios that have a financial interest in the well-being of the economy as a whole -- in greater corporate political responsibility.

In this module, we explore:

  • What strategies are asset managers using to push for CPR - and how can companies and investment managers prepare?

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.

The Shareholder Commons is tackling capital system failures that are endangering our common future. By harnessing the power of universal owners—large institutional investors with diversified portfolios that have a financial interest in the well-being of the economy as a whole—TSC works to ensure our capital markets give priority to long term systemic health over individual company profits, in ways that enable all managers to operate at a base level of responsibility without having to individually balance profit and social cost.

Keywords: #CPRPracticesResponsibility #CPAMarketFailures #CPAHealthcare #CPAShortTermism

More Resources

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ReportThe Heritage Foundation

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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ReportGreenwash Action Lab

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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ArticleHarvard Business Review

This article explores the need for companies to think about political responsibility, not just social responsibility.

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ArticleNetwork for Business Sustainability

This article summarizes the rationale for corporate political responsibility and explains the four Erb Principles, which are an actionable, non-partisan template that companies can use to decide whether and how to engage in political influence.  

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VideoCorporate Political Responsibility Taskforce
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ReportCarnegie Endowment for International Peace

This paper provides a deep and detailed examination of how economies and businesses fare under leaders who purport to be both pro-business and populist. With the increase in the number of populist leaders throughout the world, this question has become increasingly pressing. 

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ArticleBloomberg

In this article the authors highlight how the Erb Principles for Corporate Political Responsibility identify common ground between the debate about shareholder value versus stakeholder considerations, and offer a roadmap for more responsible participation by businesses in our political system. 

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VideoCorporate Political Responsibility Taskforce
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VideoCorporate Political Responsibility Taskforce
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ReportPrinciples for Responsible Investment

Provides investors with a structured approach to responsible investment, considering investment beliefs, stewardship, fiduciary duty, governance roles, and public disclosure.

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