Walden leads fund managers’ call for full disclosure of corporate lobbying spend

US-based investor Walden Asset Management is leading 40 fund managers in challenging companies to disclose their spending on political lobbying.

The investors’ alliance has filed shareholder resolutions at the proxy votes of 40 public companies urging full and transparent disclosure.

The companies include Chesapeake Energy and Devon Energy, which have attempted to block the proposals from reaching their proxy statements, arguing that the resolutions are too vague or, if implemented, would effectively be tantamount to micro management.

The US Securities & Exchange Commission has ruled that the resolutions are appropriate.

Walden has long promoted the reporting of corporate spending on lobbying in the US, which amounted to $979m (£627m, €779m) in 2010. Around 80% of S&P 500 companies actively lobby in some way.

Tim Smith, Walden director of ESG shareowner engagement, said: “It is important for investors to understand how company dollars are spent to influence our laws and regulations by lobbying activities.”

Speaking specifically of Devon Energy’s efforts to influence law makers, Smith said: “While this resolution focuses primarily on lobbying disclosure … further research discovered that Devon had spent $6.13m for federal lobbying from 2007 to 2011.

“Half of its federal spending went to 527 political committees, all of which were channelled to Republicans.”

Pennsylvania University law professor Jill Fisch said the proposals form part of a concerted effort by activist investors – such as Walden, the Service Employees International Union, the Unitarian Universalist Association of Congregations and others – to enhance corporate political disclosures in the wake of the 2010 Citizens United ruling by the US Supreme Court.

Critics of the ruling say it allows corporations and unions to spend unlimited amounts on campaign issues without disclosure.