Allen & Overy: The Growing Use of Corporate Governance to Regulate Corporate Political Activity

This has, in turn, resulted in a growing emphasis on ensuring that corporate political activities are subject to rigorous oversight through corporate governance mechanisms and are conducted transparently. This movement broadly seeks to make corporations more accountable to their shareholders and other constituencies for their political activities through various measures, including, among other things, by requiring corporations to establish written political activities policies and make regular public disclosures of all election-related spending. Over the past two years, proponents of this approach have made numerous attempts to achieve these corporate governance objectives with little success.1 The following recent developments in 2011, however, suggest that support for regulating corporate political activity through corporate governance measures is increasing: