The
resolution calls for the company to disclose policy and procedures
governing political lobbying; all payments used for direct, indirect, or
grassroots lobbying; and all payments to organizations that write and
endorse model legislation.
"Lobbying can create unnecessary risks to a company's reputation by alienating their customers," said Andrew Behar,
CEO of As You Sow. "Shareholders are demanding transparency so that we
can determine whether the company's lobbying could endanger our
investments. Monsanto's management has been channeling money through
third parties to hide their involvement – it's critical for investors to
see the full picture."
Monsanto's
political spending report omits lobbying expenditures that are
channeled through third-party groups unless the company gives the group
more than $75,000 that year. The report for the first half of 2014 only discloses six trade and industry organizations.
The high vote at Monsanto demonstrates increased investor awareness of lobbying liabilities. A similar As You Sow resolution with DuPont
will be voted on at the company's annual meeting in April. After
dialogue with As You Sow, Dow Chemical agreed to increase its lobbying
disclosures and report every organization to which the company gives
more than $25,000 per year.
Corporate
money in politics remains a contentious issue. Studies show that 80% of
Americans would boycott a company to protest its political spending,
while 65% would sell stock in the company, and over half would ask their
employer to remove it from their retirement account. Companies with
good reputations perform better financially than those with poor
reputations, according to research by the Conference Board. In 2014,
more than 60 investors filed similar proposals at over 50 companies
requesting lobbying disclosure, with average support of 25.9%.
As You Sow is a nonprofit organization that promotes environmental and social corporate responsibility through shareholder advocacy, coalition building, and innovative legal strategies. For more information visit www.asyousow.org.
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