As the U.S. continues to look polarized politically, a growing number of S&P 500 companies have made the effort to earn the highest scores from a watchdog organization that’s focused on transparency in corporate political spending.
That’s according to the latest study co-authored by that organization, the Center for Political Accountability in Washington, D.C., and the Zicklin Center for Business Ethics Research at the University of Pennsylvania’s Wharton School.
The study found a record number of S&P 500 components achieved scores of 90% in the CPA-Zicklin Index of Corporate Political Disclosure and Accountability. There were 100 such companies, dubbed “Trendsetters,” up from 89 last year.
“The big jump this year from 89 to 100 reflects that companies see the political climate as hyper-polarized, as presenting real challenges,” said Bruce Freed, CPA’s president. “Having robust transparency and accountability scores helps them in terms of their public image, but it also helps them internally because now they’re putting in place policies that govern how they’ll engage in spending and how they will be able to manage the risk.”
It’s recognized that political spending today with corporate funds poses serious risks to companies, Freed said. The troubles can include boycotts by customers at either end of the political spectrum, protests by employees, allegations of corrupt spending and reputational damage.