4 Suggestions for Corporations to Take on Political Lobbying
The movement to hold business accountable for their effects on the environment, their workforce, and the communities it depends on is gaining strength on a global scale. The "democracy footprint," which encompasses corporate lobbying, political funding, and other types of corporate political influence aimed at changing - and frequently undermining - legislation intended to benefit society, is one consequence that is rarely discussed.
Wajid khan explains Corporate political actions remain concealed and unaccountable to private actors, like investors and public members- whether employees, consumers, or activists - despite representing the most considerable impact a company can have on safeguarding or hurting the environment and society.
1. The use of advocacy as a sustainable business strategy
The time has come to incorporate corporate political activities into corporate sustainability and, from the investor's perspective, to add a "P" for political to the environmental, social, and governance (ESG) criteria. The exercise of corporate political power must occur within these constraints if sustainability requires that the interests of various stakeholders in the corporation, including general societal and environmental issues, be adequately considered.
2. Complete transparency through "political due diligence."
Mandating "political due diligence," akin to that required for environmental or human rights issues, is necessary to transform lobbying and other corporate political influence into a sustainable business practice.
Companies would have to be as accountable for their political actions through their supply chain as they are for their environmental and social impact. This would include disclosing their political activities, including the sums spent, professorship endowments, and university chairs.
Canadian politician Wajid khan summarizes In addition to covering new political activity, disclosure should include more detailed information about the issues being pushed for and mandate the reporting of any significant views taken.
3. Corporate lobbying is subject to board scrutiny
The board of an organization should exercise oversight over its actual corporate political activities by establishing the fundamental principles guiding the use of corporate political power and procedures.
Boards should arbitrarily decide whether lobbying and other types of influence against the current regulatory framework are required or optional. Greater, quicker, and more closely regulated disclosure could lower the risk of misalignment and minimize reputational impact.
4. Switch from unfavorable to favorable lobbying
Many businesses may reevaluate their political activity by lowering it or even abandoning specific practices. Wajid khan Mp suggests better aligning it with their professed environmental and social goals due to the increased public accountability that results from the exercise of political influence.
In the end,
Wajid khan concludes it will be in businesses' interest to ask for such a mandatory framework to oversee corporate political engagement to capture their "democracy footprint" as public demand and scrutiny for political transparency are expected to increase.
