This practice note examines market trends in how public companies disclose their political contributions, or “political spending,” as part of their environmental, social and governance (ESG) issues. The note provides examples of disclosures from recent periodic reports and analyzes the potential benefits and risks of political spending for SOEs. The brief also examines the growing interest and demand from regulators, investors and shareholder activists for more transparency and accountability on corporate political spending, as well as the challenges public companies face in complying with corporate political spending rules. existing or proposed disclosure. The memo concludes with recommendations on how to prepare and improve disclosure of political contributions in SEC filings, such as disclosing the amounts, targets, goals, and impacts of political spending, as well as the process for approving and monitoring these activities.
Market Trends 2022/23: Disclosure of Political Contributions | Knowledge
