Lobbying Disclosure

Corporate lobbying has a major impact on our political system, with roughly 10 times more spent than in elections. While many companies are adopting the lobbying oversight and voluntary disclosure model common for election spending, the growing focus on how company policies line up—or conflict—with spending in the political system is particularly salient for lobbying.  Trade associations and other non-profit groups often press elected officials for policies counter to stated corporate policies, prompting investors to focus on these mismatches.  Large companies like Alphabet and Mastercard  contribute millions to intermediary groups which, in turn, bankroll other organizations—but exactly how much remains largely “dark.”  Investors are persisting with proposals seeking reports on “Company policy and procedures governing lobbying, both direct and indirect, and grassroots lobbying.”  They want to know what companies are lobbying about, who makes spending decisions, and who gets lobbied with how much.  At issue is not only dark money in general, but also state lobbying because only half the states require any disclosure at all.

• Vote due date:  Alphabet, June 1; Mastercard, June 26.

• Learn more: War on ESG Highlights the Need for Lobbying Disclosure

Racial Justice

The George Floyd murder and growth of the Black Lives Matter movement led many companies to pledge support for racial justice efforts in their operations and in society at large. Three years later, shareholders now want an accounting about what companies have done after so many promises.  A resolution at UnitedHealth Group and Comcast asks for an independent, third-party racial equity audit analyzing adverse impacts on nonwhite stakeholders and communities of color that describes the steps, if any, each company plans to mitigate those impacts.

We also offer a look at a new racial and climate justice resource for shareholders and the results of a withdrawn resolution and successful agreement with Kinder Morgan.

• Vote due date:  UnitedHealth Group, June 4, Comcast, June 6.

• Learn more: Companies Taking a Closer Look at How Racial Inequity Affects Their Workers, Customers and Shareholders

• Learn more: Shareholders and Local Communities Join to Demand Racial and Environmental Justice

Board & Workplace Diversity

Once common on proxy ballots, board diversity resolutions are rarer today asboards have become more diverse.  Listing standards on the NASDAQ exchange mandate disclosure or an explanation for its lack, illustrating mainstream traction. But some boards have not changed.  Red Rock Resorts’ all male board means it is one of the few companies where investors will vote on the subject.

Workplace diversity resolutions remain common, however, with dozens filed every year.  More corporate disclosure is occurring, prompting many withdrawals, but investors continue to seek information about how diversity programs are working, backed up by data and evidence of corporate strategies.  We look at a new report and database on EEO disclosure and its impact on workplace diversity.

• Vote due date: Red Rock Resorts, June 7.

• Learn more: Board Diversity Disclosure Identifies Leaders and Laggards

Learn more: Increase in EEO-1 Data Reporting Shows Positive Link Between Diversity and Financial Performance