A Board Member’s Guide to Corporate Political Spending

We have developed a framework to help boards make decisions concerning corporate political spending — decisions that are informed; consistent with company strategies, policies, and values; and that mitigate risks as much as possible.

To accomplish this, directors must be able to do three central things: 1) Decide whether the company should engage in political spending; 2) Decide whether to disclose that spending; and 3) Ensure that appropriate oversight and other policies and procedures are in place.

Supreme Court Justice John Paul Stevens wrote in the Citizens United campaign finance decision that “Business corporations must engage the political process in instrumental terms if they are to maximize shareholder value.” Yet the freedom bestowed on corporations by Citizens United comes with serious risk.

via A Board Member’s Guide to Corporate Political Spending.

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