NYT: 50 Fortune 500 Corporations to Disclose Political Contributions!

[Omaha Steve]

http://thecaucus.blogs.nytimes.com/2008/05/29/corporations-to-disclose-political-contributions/

May 29, 2008, 12:49 pm
Corporations to Disclose Political Contributions

By Leslie Wayne

Boards of directors of Fortune 500 companies typically get involved in such matters as setting dividends, hiring executives and deciding on corporate strategy. But a new task has been added to the agenda of many corporate boards: Political disclosure.

A total of 51 corporations, the most recent being the consumer products giant Procter & Gamble, have agreed to adopt a new political disclosure resolution that has been promoted by shareholder activist groups. The Center for Political Accountability, a Washington nonprofit, announced Thursday that it had just passed the mark of getting 50 companies to agree to the proposal.

The resolution, which has been brought before corporate boards since 2002, requires corporations to disclose publicly when corporate funds are used for political purposes, whether on the state or federal level. Under the law, corporations are not allowed to make donations to federal candidates directly from their corporate treasury. But there are many other ways they can pour money into politics, which is what the disclosure policy covers.

The agreement requires disclosure of payments from corporations to trade associations –- groups like the Chamber of Commerce and National Association of Manufacturers — that lobby and make political contributions. Disclosure would also be required for corporate donations to so-called 527 and other independent political advocacy groups, including both the Republican and Democratic Governor’s Associations, which are organized as 527s. And the resolution covers corporate donations to state house and judicial races in states where such contributions from corporations are allowed.

Those agreeing to the resolution include American Express, Avon, Bristol-Myers Squibb, Chevron, Coca-Cola, Colgate-Palmolive, eBay, E.I. DuPont, General Dynamics, General Electric, General Motors, Home Depot, Hewlett-Packard, Intel, McDonald’s, Merck, PepsiCo, Pfizer, Target, United Parcel Service, Verizon and Xerox. A total of the 35 of the 51 companies agreeing to the resolution are S&P 100 companies, which represent some of the nation’s largest publicly traded companies.

For corporate America, this is a big step. Politics and business typically do not mix -– or if they mix, they are rarely discussed at the board level. But in the wake of the Jack Abramoff scandal, greater political activism by trade groups and demands by candidates and causes for corporate money, boards are now seeing that their corporate image could be tarnished if these contributions or political activities go awry.

FULL story at link.