News

Growing Number of S&P 500 Companies Prioritize Transparency in Political Spending

James L. Flint

• October 31, 2023

According to a recent study conducted by the Center for Political Accountability (CPA) and the Zicklin Center for Business Ethics Research, a growing number of S&P 500 companies are actively striving to achieve high scores in corporate political disclosure and accountability. This effort reflects the increasingly polarized political landscape in the United States.

The study reveals a significant milestone, with a record-breaking 100 companies from the S&P 500 components earning scores of 90% or above in the CPA-Zicklin Index. These companies, referred to as "Trendsetters," have surpassed last year's count of 89.

Bruce Freed, the President of CPA, highlighted the reasons behind this surge: "The big jump this year from 89 to 100 reflects that companies see the political climate as hyper-polarized, as presenting real challenges." Furthermore, he emphasized that companies benefit both externally, by enhancing their public image, and internally, by establishing policies that govern their spending practices and manage potential risks.

Political spending with corporate funds has become a significant concern for companies today due to the associated risks. These risks include customer boycotts from both ends of the political spectrum, employee protests, allegations of corrupt spending, and reputational damage.

Among the S&P 500 companies that showed improvement in their scores to become "Trendsetters" are Meta Platforms (previously known as Facebook parent company), Yum Brands (parent company of KFC and Taco Bell), Whirlpool, PG&E, and RTX (formerly Raytheon).

Even companies that already had relatively high scores were motivated to make an extra push to attain top scores. Dan Carroll, CPA's counsel and vice president for programs, noted this determination among the group of top-scoring companies.

In conclusion, the increasing number of S&P 500 companies prioritizing transparency in corporate political spending underscores the recognition of the risks involved and the need for accountability. These companies not only seek to enhance their public image but also proactively manage their spending practices to mitigate potential challenges.

As the conversation around corporate political spending continues to gain momentum, organizations are taking steps to assess their policies and make necessary adjustments. In a recent interview, an industry expert highlighted the growing interest among companies in enhancing their political spending practices.

The Center for Political Accountability (CPA) has been at the forefront of this movement, releasing a comprehensive guide that provides companies with a checklist for managing election-related outlays. The guide has been developed in collaboration with seasoned executives from high-performing organizations, ensuring its relevance and practicality.

According to the latest study conducted by CPA and the Zicklin Center, there has been a significant increase in political spending disclosures among S&P 500 companies. In fact, a record-breaking 78% of these companies fully or partially disclosed their political expenditures in 2023 or implemented restrictions on certain types of spending. However, it is worth noting that there are still a few "Basement Dwellers" - companies that consistently receive low scores. This includes notable names such as Tesla and Dish Network.

There are several factors that contribute to a company's rating in the CPA-Zicklin Index. These factors include transparency and accountability practices, disclosure of corporate contributions to political groups, the establishment of policies regarding political spending, and the level of board oversight on such activities.

It is important to recognize that some "Basement Dwellers" have high levels of insider ownership, which insulates them from external pressures. Additionally, certain companies may not be consumer-facing or are relatively new entrants to the S&P 500, further explaining their low scores.

From ’s archives (January 2023): On the anniversary of the Jan. 6 attack, companies face new pressures to disclose political spending 

Also (October 2022): Lindsey Graham’s corporate donors find themselves linked to his controversial abortion bill. Why ‘everyone’s playing gotcha with political spending.’