VideoCorporate Political Responsibility Taskforce

Risks & Opportunities as 2022 Campaigning Begins

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On June 24, 2021, we spoke with Bruce Freed, President & Cofounder of The Center for Political Accountability to explore “Preparing for Greater Political Spending Transparency as 2022 Campaigning Begins.”

As campaigning starts up for 2022, companies face critical decisions about how to align their political influence with their public commitments and shifting expectations from employees, investors, customers and the public. How can firms respond to expectations of greater transparency, knowing over 76% of Americans from all parties expect full disclosure? How should firms think about 2022 mid-term giving in light of increased scrutiny and real implications for civic institutions, social justice and public trust? What disclosure should companies prepare for in the future as the SEC evaluates public comments on climate change and ESG-related disclosures?

In this module, we explore:

  • How can companies minimize risk as they navigate the pressures around 2022 fundraising?

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. Specifically crafted as conversation-starters for business students, government affairs officers, sustainability executives, diversity, equity and inclusion leaders, investors, academic experts, and stakeholder advocates, each module is designed to spark constructive, non-partisan, principles-based dialogue without “being political.”

Bruce Freed is the President & Cofounder of the Center for Political Accountability and developer of the new CPA-Wharton Zicklin Model Code of Conduct for Corporate Political Spending. Under his leadership, the CPA produces the annual CPA-Zicklin Index, which benchmarks the S&P 500 companies on their political disclosure and accountability policies and practices, and TrackYourCompany.org, a searchable, sortable database on company political spending. He helped develop the Center’s innovative strategy of using corporate governance to address the risks companies face from political spending. As a result of CPA’s efforts, political disclosure and accountability is recognized as the norm.

The full transcript for this module is available here

#CorporatePoliticalResponsibility #CPR_Trends #SystemicRisk #LongTermValue #CPR_Transparency

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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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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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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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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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ArticleHarvard Business Review

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

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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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