Home
/
RELIGION & LIBERTY ONLINE
/
Proxy Resolutions Aim to Stifle Corporate Speech
Proxy Resolutions Aim to Stifle Corporate Speech
Sep 11, 2025 2:59 PM

On Friday, June 6, shareholders of Wal-Mart Stores, Inc., will gather at the Bud Walton Auditorium on the University of Arkansas campus in Fayetteville, Ark. Among them will be As You Sow member Zevin Asset Management, which is pushing a resolution demanding the retailer issue annual reports on its policy, lobbying and membership expenditures. All of this, of course, is intended to embarrass Walmart in the same-ol’ name-and-shame game employed so often by shareholder activists advancing a progressive agenda.

What apparently bothers Zevin is Walmart’s exercise of its voice in policy issues directly impacting pany, its shareholders and – most important – its customers. Zevin’s resolution goes even further by requiring Walmart divulge its contributions to such tax-exempt groups as the American Legislative Exchange Council, the U.S. Chamber of Commerce or the Business Roundtable. Why? Well – to Zevin and other shareholders cut from the same sackcloth — it’s unseemly that the world’s pany engages with a group that writes model legislation. Never mind that pany employs more than 2 million people worldwide and donates more than $1 billion each year to charities, it’s the incorrectly perceived unsavory political nature of anything that drifts right-of-center.

From the As You Sow website:

This resolution from Zevin Asset Management asks for annual reports on policy, payments, memberships in groups that write model legislation, information on how these payments occur, and how management and the board of directors monitor them. The proposal says the reports should include:

1. Company policy and procedures governing lobbying, both direct and indirect, and grassroots munications.

2. Payments by Walmart used for (a) direct or indirect lobbying or (b) grassroots munications, in each case including the amount of the payment and the recipient.

3. Walmart’s membership in and payments to any tax-exempt organization that writes and endorses model legislation.

4. Description of management’s and the Board’s decision making process and oversight for making payments described in section 2 and 3 above.

For purposes of this proposal, a “grassroots munication” is munication directed to the general public that (a) refers to specific legislation or regulation, (b) reflects a view on the legislation or regulation and (c) encourages the recipient of munication to take action with respect to the legislation or regulation. “Indirect lobbying” is lobbying engaged in by a trade association or other organization of which Walmart is a member.

Both “direct and indirect lobbying” and “grassroots munications” include efforts at the local, state and federal levels.

The report shall be presented to the Audit Committee or other relevant mittees and posted on Walmart’s website.

Sigh. It’s all so Rockwell, but substantially more difficult to dance to. The ridiculous lengths taken by Zevin’s resolution not-so-coincidentally resemble more than 40 resolutions submitted by members of As You Sow and the Interfaith Center on Corporate Responsibility. Both groups are linked with Walden Asset Management and Trillium who, are, in turn, affiliated with the Center for Political Accountability. Led by Bruce Freed, CPA is partially funded by George Soros’ Open Society Foundations.

As noted by the Wall Street Journal editorial board on Friday, May 23:

Mr. Freed works with political investor groups like Walden Asset Management and Trillium that own shares but whose real purpose is to put proposals on the proxy ballot. The proposals are backed by the AFL-CIO and SEIU, which want to shut down petition from business groups. Also providing public harassment muscle is the left-wing Democracy Alliance, which connects high-dollar liberal donors with progressive groups like CREW, Public Citizen, Common Cause and Media Matters for America.

The WSJ continues:

In a 2011 memo, Media Matters wrote that its strategy was to launch “shareholder resolution campaigns to prevent corporations from making these types of [political] expenditures.” The disclosures, it continued, would then “create a multitude of public relations challenges for corporations that make the decision to meddle in political campaigns”; and “allied organizations” will “provoke backlashes panies’ shareholders, employees, customers, and the public at large.”

Fortunately, thus far, Mr. Freed’s efforts – and those of his clergy and religious co-conspirators – haven’t yielded terrific results. WSJ reports Freed’s claim his arm-twisting convinced panies to divulge spending on lobbying, political campaigns and donations to business-oriented tax-exempt organizations. However, the WSJ notes:

Of the 94 shareholder proposals on corporate political spending or lobbying introduced this year, 52 have already been voted on, according to filings at the Securities and Exchange Commission. A mere 22.2% of shareholders supported political disclosure, virtually unchanged from last year. Some 25 are rewarmed proposals that saw their support weaken, and more than 75% got fewer votes than in 2013.

Whew! But the cost of fending off such resolutions is immense in terms of freedom of speech as well as in dollars. The WSJ concludes:

Disclosure sounds like corporate apple pie, but there’s no fiduciary reason panies should have to disclose in a proxy how much they give to groups like the Chamber of Commerce, the Business Roundtable or to political campaigns. In this era of government economic dominance, political spending to prevent regulatory damage is as critical a business expense as marketing. Campaign-finance laws already require that candidates disclose their donors and the amounts they give, and most business trade groups reveal how much they receive panies.

It’s good to see that investors are figuring out that the real risk to business is from Mr. Freed’s campaign for disclosure, not from lobbying.

Not only Mr. Freed, but as well the nuns, clergy and other religious shareholders following his misguided efforts to suppress corporate speech.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Finding the Right Charity
The Dave Ramsey Show appears on Fox Business Network and is also available for live streaming via Hulu. In last Thursday’s episode (at about the 18:00 mark), a Twitter follower of @ramseyshow asked, “I want to start giving. How do I find the right charity for me and how do I find out if the charity is legit?” Dave’s short answer: “You have to spend time on it.” He expands a bit, but that’s a great starting point. You need...
The fall of the Berlin Wall: Reminiscence and reflection
Excerpts from remarks delivered at the Acton Institute annual dinner in Grand Rapids, Mich., on Oct. 29, 2009: Twenty years ago today, a growing tide of men and women in Eastern Europe and northern Asia were shaking off the miasma that had led so many to imagine that central economic planning could work. The socialist regimes of Eastern and Central Europe—accepted as ontological realities whose existence could not be questioned—were, well, being questioned. On November 4th, 1989, a million anti-Communist...
Machiavelli, the Prince, and the Tradition of Liberty
Machiavelli’s succinct and semi-diabolical advice to the prince is one of the most enduring works of political philosophy in the world. This man, writing in a time roughly contemporaneous with the Reformation, was less concerned with seeking the will of God than with winning at all costs. I wrote about him in my book The End of Secularism. He is famous for advising the prince that it is important to appear honest, humane, religious, faithful, and charitable, but that it...
Recommended Post-Reformation Day Reading
In connection with the worldwide celebrations of the quincentenary of John Calvin’s birth in 2009, the Acton Institute BookShoppe recently made available a limited stock of the hard-to-find Light for the City: Calvin’s Preaching, Source of Life and Liberty (Eerdmans, 2004). In this brief and accessible work, Lester DeKoster examines the interaction between the Word proclaimed and the development of Western civilization. “Preached from off the pulpits for which the Church is divinely made and sustained, God’s biblical Word takes...
Earned Success = Happiness
David Bahnsen reflects on last night’s annual dinner: (Acton’s) co-founder, Father Sirico, is a friend and patriot. He is a scholar in Catholic social thought, and perhaps as good of an orator as I have ever heard. He and I shared the podium at an event I did in Newport Beach earlier in the year. Fortunately for me, I spoke before him that evening! The talk tonight was challenging and inspiring. He reminded us that the greatest victim in this...
‘Mr. Gorbachev, tear down this wall!’
Today marks the twentieth anniversary of the fall of the Berlin Wall. Acton adjunct scholar and sometime PowerBlog contributor Eric Schansberg links to a bit of background to Ronald Reagan’s remarks at the Brandenburg Gate provided by Anthony Dolan, Reagan’s head speechwriter, in today’s WSJ. Peter Robinson is credited with the famous utterance, “Mr. Gorbachev, tear down this wall!” In his remarks at this year’s Acton Institute Annual Dinner, Rev. Robert A. Sirico recalled that President Reagan’s challenge was derided...
Critiquing Fair Trade and Dead Aid
Cardus’ Robert Joustra rightly pillories “fair trade” along with the logic of foreign aid in a challenging article, “Fair Trade and Dead Aid: ‘My Voice Can’t Compete with an Electric Guitar.'” Joustra’s point of departure is sound: “The aid model is not working, and no large-scale cash infusion or debt forgiveness scheme is going to make it suddenly start working. The fair trade brand is too small-scale and ultimately regressive.” Unfortunately, though, Joustra’s well-placed critique of the fair trade movement...
Communism as Religion
From the opening page of Lester DeKoster’s Communism and Christian Faith (1962): For the mysterious dynamic of history resides in man’s choice of gods. In the service of his god — or gods (they may be legion) — a man expends his mits his sacrifices, devotes his life. And history is made. Understand Communism, then, as a religion; or miss the secret of its power! Grasp the nature of this new faith, and discern in contrast to it the God...
Dems Cornered on Health Reform
As we appear to be nearing a climax in the many-months-long health care reform debate (maybe), opinion is remarkably divided on what the end result will be. Outright victory for left-wing reformers? Passage of a watered down, mon-denominator reform bill? Or clear victory for Republican opposition? All possibilities remain on the table. The relative success of conservative candidates in major elections Tuesday led mentators to reason that the environment has gotten more difficult for moderate Democrats and that, therefore, Pelosi...
The Market, School of Virtue
This week’s Acton Commentary: Does the market inspire people to greater practical virtue, or does it eviscerate what little virtue any of us have? Far from draining moral goodness out of us—as many think—the free market serves as a “school of the practical virtues.” Rather than elevating greed and self-sufficiency, the market fosters interdependence and cooperation. Its rewards do not go to those who are the most isolated, self-absorbed, or cut off from society, but to those who sustain mutually...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved