Corporate Behavior Is Changing With The Guidance Of The Center For Political Accountability

The Rise of Corporate Transparency

The CPA, a nonpartisan, nonprofit advocacy group, has been at the forefront of promoting transparency in corporate political spending. Their efforts have led to significant changes in how companies manage and report their political contributions. According to the CPA's Corporate Political Disclosure and Accountability Index, an increasing number of companies have adopted their model code of conduct, with over 100 companies committing to enhanced disclosure standards by 2012.

Key Achievements:

• Engagement with Shareholders and Companies: CPA has effectively engaged with shareholders and companies to advocate for transparency, resulting in a growing number of businesses adopting their guidelines.
• Model Code of Conduct: CPA developed a model code that has been increasingly used by major corporations to guide their political contribution policies.
• Influence on Regulatory Practices: CPA's advocacy efforts have positioned them as a leading voice in the push for regulatory changes, such as the potential SEC rule mandating political donation reporting by all public companies.

The Impact of Citizens United

The Supreme Court's decision in Citizens United v. FEC dramatically altered the landscape of corporate political spending, allowing unlimited corporate donations to political causes. This decision underscored the need for organizations like CPA, as companies began to funnel money through various channels, often obscuring the true extent of their political involvement. The aftermath of Citizens United has seen a mixed response from corporations, with some opting for greater transparency, while others hide behind the anonymity provided by certain political groups and associations.

Corporate Reactions to Increased Scrutiny:

• Public Backlashes: Companies like Target faced significant public and shareholder backlash for their political donations, highlighting the risks associated with political contributions. Target, for instance, faced protests and boycotts after it was revealed that they contributed to a group supporting a candidate opposed to gay marriage.
• Shareholder Resolutions: Influential companies such as Prudential Financial, PepsiCo, Dow Chemical, UPS, and Pfizer have faced shareholder resolutions demanding greater transparency and accountability in political contributions.

The Current Landscape and Future Prospects

Today, more than half of the Fortune 100 companies have implemented some form of disclosure policy regarding their political spending. However, there is still considerable room for improvement. The ongoing efforts of CPA and similar organizations are crucial in ensuring that this trend towards transparency continues to grow, thereby protecting investor interests and enhancing public trust in corporate practices.

Statistics and Trends:

• Adoption of Disclosure Policies: According to a report by the CPA, the adoption of disclosure policies among Fortune 100 companies has seen a steady increase, with more than 50% now embracing some level of transparency in their political contributions.
• Investor and Public Demand: There is a growing demand from investors and the public for greater transparency, which is reflected in the increasing number of shareholder resolutions related to political spending.

In conclusion, the Center for Political Accountability continues to play a critical role in shaping the practices of corporate political spending in the United States. Through persistent advocacy and strategic engagement with corporations and shareholders, CPA is steering the business community towards a more transparent and accountable future.