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Shareholders Get Political

All of the ruckus over political campaign contributions in the last couple of years is definitely resulting in more public awareness.  Shareholders are even getting political now.  A proxy advisory service, Institutional Shareholder Services, states that “Investors filed more than 100 resolutions this year asking companies to disclose what they spend on political advocacy. The number of proposals for the first time exceeded shareholder resolutions on energy and environmental issues, which have long attracted significant interest from investors.”  This is an inspirational development that investors are starting to request transparency by corporations about their political expenditures.  It is not the norm for companies to disclose this information.  In fact, 86% of the Standard & Poor’s 500 companies do not provide shareholders with information about indirect political expenditures like money given to trade associations and other groups.

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