Political Contributions

2010 – AT&T Inc.

   

 

RESOLVED, that the shareholders of AT&T (“Company”) hereby request that the Company provide a report, updated annually, disclosing the Company’s:

 

1. Policies and procedures for political contributions and expenditures (both direct and indirect) made with corporate funds and for payments (both direct and indirect) used for grassroots lobbying communications.

   

2. Monetary and non-monetary political contributions and expenditures not deductible under section 162 (e)(1)(B) of the Internal Revenue Code, including but not limited to contributions to or expenditures on behalf of political candidates, political parties, political committees and other political entities organized and operating under 26 USC Sec. 527 of the Internal Revenue Code and any portion of any dues or similar payments made to any tax exempt organization that is used for an expenditure or contribution if made directly by the corporation would not be deductible under section 162 (e)(1)(B) of the Internal Revenue Code.

 

3. Payments (both direct and indirect) used for grassroots lobbying communications as defined in 26 CFR § 56.4911-2.

 

4. The report shall include the following:

 

a. Identification of the person or persons in the Company who participated in making the decisions to make the political contribution or expenditure

b. Identification of the person or persons in the Company who participated in making the decision to make the payment for grassroots lobbying communications;

c. The internal guidelines or policies, if any, governing the Company’s political contribution and expenditures and

d. The internal guidelines or policies, if any, for engaging in grassroots lobbying communications.

   

The report shall be presented to the board of directors’ audit committee or other relevant oversight committee and posted on the company’s website to reduce costs to shareholders.

 

Supporting Statement: As long-term AT&T shareholders, we support transparency and accountability in corporate political spending. These activities include direct and indirect political contributions to candidates, political parties or organizations; independent expenditures; grassroots lobbying communication; or electioneering communications on behalf of federal, state or local candidates.

 

Disclosure is consistent with sound public policy, in the company’s and its shareholders best interest, and critical for compliance with recent federal ethics legislation.  Absent a system of accountability, company assets can be used for policy objectives that may be inimical to the long-term interests of and may pose risks to the company and its shareholders.

 

AT&T contributed about $26.6 million in corporate funds since the 2002 election cycle.  (CQ’s PoliticalMoneyLine:  http://moneyline.cq.com/pml/home.do and National Institute on Money in State Politics: http://www.followthemoney.org/index.phtml.)  However, publicly available data does not provide a complete picture of the Company’s political expenditures.  For example, the Company’s trade association payments used for political activities and grassroots lobbying communications are undisclosed and unknown. In many cases, even corporate management does not know how trade associations use their company’s money politically.

 

The proposal asks the Company to disclose all of its political expenditures, including payments to trade associations and other tax exempt organizations. The Company’s Board and its shareholders need complete disclosure to be able to evaluate the political use of corporate assets.