The Center for Political Accountability (CPA), a Washington-based advocacy group, has been coordinating a seven-year investor campaign to press companies to provide more disclosure on campaign contributions, their policies for spending on political races, their contributions to trade associations, and the corporate officials responsible for those spending decisions. About 70 companies--including almost half of the S&P 100--have agreed to provide more disclosure, according to the CPA.  

At 3:00 pm on February 24, Bruce Freed of CPA will participate in a conference call on Citizens United for members of the Social Investment Forum (SIF), which includes RiskMetrics Group.

The high court's Jan. 21 ruling allows unlimited independent corporate spending in political campaigns. Firms may now use company resources to fund any type of political advertisements, even those opposing or endorsing candidates. Some investors fear that the volume of corporate contributions will increase dramatically, as political organizations press companies to ramp up their spending. 

As of Feb. 15, investors had filed 49 proposals that seek more disclosure on political spending, according to RiskMetrics data. Among investors supporting this campaign are the New York City Employees' Retirement System, the Interfaith Center on Corporate Responsibility, the Social Investment Forum, Pax World Management, Walden Asset Management, and shareholder advocate Robert Monks.

In addition, nine members of the Council of Institutional Investors have co-signed a CPA letter that urges S&P 500 firms to provide more disclosure and ensure that there is board oversight of political decisions.

The ShareOwners.org advocacy group also is mobilizing on the issue. On Feb. 4, the group said it would support the shareholder proposal campaign, petition the SEC for a rule-making on the issue, and urge Congress to ensure shareholders have all tools they need to ensure that corporate political spending does not erode shareholder value.

"Our focus is to ensure that the interests of investors are not steamrollered in the pursuit of unrestrained corporate politicking," Maureen Thompson, the group's interim executive director, said in a statement.

Some Democratic lawmakers have reacted to the Citizens United ruling by introducing legislation. Rep. Chris Van Hollen of Maryland and Senator Charles Schumer of New York are drafting a bill that would restrict political expenditures by foreign interests, federal contractors, and financial firms that receive federal assistance. Their bill also would require enhanced disclosure to shareholders and the public. "If corporations spend their funds in campaigns, voters have a right to know who is delivering and paying for the message," Van Hollen said in a Feb. 10 press statement. 

Another Democrat, Rep. Michael Capuano of Massachusetts, introduced legislation on Jan. 27 to require companies to obtain shareholder approval--from investors holding a majority of shares outstanding and without including broker votes--before spending more than $10,000 in a fiscal year on political activities.

Rep. Alan Grayson of Florida has drafted two bills. His first measure, introduced Jan. 13, would prohibit any national securities exchange from listing a corporation's shares unless the company complies with the federal regulations governing corporate contributions and expenditures that were in effect during 2008 elections. His second bill, introduced Jan. 21, would require shareholder approval for a company to spend money to influence public opinion on matters not related to the company's products or services.