New report finds global corporate lobbying risks on the rise
This story originally appeared on the Public Citizen website. You can view the original article here.
By Jon Golinger, Public Citizen Democracy Advocate
Global concerns about the risks of undisclosed and unaccountable corporate lobbying influence on government policy are on the rise, according to a new report by international independent standards organization the Global Reporting Initiative (GRI).
The new GRI report, Corporate lobbying impacts: Stakeholder demands for transparency, found: “Many countries lack comprehensive disclosure requirements to address lobbying – and even where rules exist, reporting often does not clarify which positions companies support or oppose, while the definition of lobbying can significantly vary between jurisdiction.” The report highlighted growing scrutiny around the world about whether lobbying efforts align with public interest and sustainability commitments and highlighted risks from undisclosed and unaccountable corporate lobbying activities, such as regulatory stagnation, delays in addressing global challenges like climate change, and policy decisions being directed away from the public interest.
The GRI report recommended proposals for responsible corporations to adopt to improve transparency and accountability in lobbying activities, such as:
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- Go beyond legal compliance and voluntarily disclose lobbying activities
- Centralize disclosures in a single, easily accessible location
- Conduct regular reviews of trade association memberships
- Establish board-level oversight of political engagement
The GRI report’s findings echo the rationale driving the movement in the U.S. led by the Corporate Reform Coalition and allies to support shareholder resolutions favoring increased lobbying disclosure and to get the Securities Exchange Commission to enact a new rule requiring a public company disclose its lobbying spending and oversight and any material financial risks to investors that may arise from that lobbying.
