Study reveals growing trend of companies earning high scores for disclosure and accountability
- A growing number of S&P 500 companies are earning high scores for transparency in corporate political spending
- The Center for Political Accountability and the Zicklin Center for Business Ethics Research co-authored a study on corporate political disclosure and accountability
- 100 S&P 500 companies achieved scores of 90% in the CPA-Zicklin Index, up from 89 last year
- Companies see the hyper-polarized political climate as presenting real challenges and are prioritizing transparency and accountability
- Political spending with corporate funds poses serious risks to companies, including boycotts, protests, allegations of corrupt spending, and reputational damage
- 11 companies from the S&P 500 improved their scores to rank as ‘Trendsetters’
- CPA has released a new guide to corporate political spending, providing a checklist for companies on election-related outlays
- 78% of S&P 500 companies fully or partially disclosed their political spending in 2023 or prohibited at least one type of spending
- 24 companies received scores of 0% in the CPA-Zicklin Index, known as ‘Basement Dwellers’
- Scores in the index are based on transparency, accountability practices, and disclosure of corporate contributions to political groups
A recent study co-authored by the Center for Political Accountability and the Zicklin Center for Business Ethics Research at the University of Pennsylvania’s Wharton School highlights a growing trend among S&P 500 companies to prioritize transparency and accountability in corporate political spending. The study found that a record number of 100 companies achieved scores of 90% in the CPA-Zicklin Index of Corporate Political Disclosure and Accountability, up from 89 last year. This increase reflects the recognition that the hyper-polarized political climate poses real challenges for companies. By implementing robust transparency and accountability practices, companies not only enhance their public image but also mitigate risks associated with political spending, such as boycotts, protests, allegations of corruption, and reputational damage. The study also identified 11 companies that improved their scores to rank as ‘Trendsetters,’ demonstrating their commitment to transparency. To assist companies in navigating political spending, CPA has released a new guide that provides a checklist for election-related outlays. Additionally, the study revealed that 78% of S&P 500 companies fully or partially disclosed their political spending in 2023 or prohibited at least one type of spending. However, there were 24 companies, known as ‘Basement Dwellers,’ that received scores of 0% in the index, indicating a lack of transparency and accountability. Overall, the CPA-Zicklin Index serves as a valuable tool for assessing companies’ practices and promoting greater transparency in corporate political spending.
Factuality Level: 7
Factuality Justification: The article provides information about a study conducted by the Center for Political Accountability and the Zicklin Center for Business Ethics Research. It mentions that a record number of S&P 500 companies achieved high scores in the CPA-Zicklin Index of Corporate Political Disclosure and Accountability. It also discusses the potential risks of political spending for companies. The article includes quotes from Bruce Freed, president of CPA, and Dan Carroll, counsel and vice president for programs at CPA. However, the article lacks specific details about the study methodology and does not provide a balanced perspective by including viewpoints from critics or alternative studies.
Noise Level: 6
Noise Justification: The article provides information on the increasing number of S&P 500 companies that are focused on transparency in corporate political spending. It mentions the record number of companies achieving high scores in the CPA-Zicklin Index, the potential risks of political spending, and the companies that improved their scores. However, the article lacks in-depth analysis, scientific rigor, and actionable insights. It also includes some unrelated information about companies that received low scores and links to other articles.
Financial Relevance: Yes
Financial Markets Impacted: The article does not provide specific information about financial markets or companies impacted.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the efforts of S&P 500 companies to earn high scores in transparency in corporate political spending. While it pertains to financial topics, there is no mention of any extreme events or their impact.
Public Companies: Meta Platforms (META), Yum Brands (YUM), Whirlpool (WHR), PG&E (PCG), RTX (RTX), Tesla (TSLA), Dish Network (DISH)
Key People: Bruce Freed (CPA’s President), Dan Carroll (CPA’s Counsel and Vice President for Programs)
Reported publicly:
www.marketwatch.com 
