Contact: John Harrington – 707.252.6166
FOR IMMEDIATE RELEASE
September 26, 2005
Napa, California
Corporate Political Contributions as an Investment - What Do Shareholders Gain?
Shareholders ask Washington Mutual to shed light on the company's political spending
Harrington Investments, Inc. (HII), filed a shareholder resolution with Washington Mutual, Inc., asking for a report on political contributions made with corporate funds.
The resolution filed is part of a campaign by the Center for Political Accountability (CPA) aimed at bringing transparency and accountability to corporate political action. Harrington is one of the newest members of a group of institutional investors and pension funds that has been filing the CPA resolution since 2003.
"Jesse Unruh, the former Speaker of the California State Assembly, said that 'Money is the mother's milk of politics'," said John Harrington, President and CEO of Harrington Investments, Inc. "Certainly for Washington Mutual, political contributions are an investment and corporate management expects a return on this investment. It's time for Washington Mutual owners to get a clear picture of the amount of money our company spends supporting politicians and what we receive in return."
Harrington continued by saying that Center for Political Accountability shareholder resolutions have been receiving larger shareholder votes over the last several years, topping 56% at Plum Creek Timber in the 2005 shareholder season.
According to Harrington, as a result of pressure brought by the Center and its filer partners, six companies have agreed to disclose and require board oversight of their contributions and contribution policies. These include Morgan Stanley, Schering-Plough and Johnson & Johnson.
According to the Center for Public Integrity, Washington Mutual made political contributions of at least $56,000 in 2003-04, the last fully reported election cycle. However, the resolution points out that the information available on the company's political contributions is incomplete and states that "[c]omplete disclosure by the company is necessary for the company's Board and its shareholders to be able to fully evaluate the political use of corporate assets."
The resolution asks that the report include who received the contributions, who in the company made the decision to make such contributions, and what internal guidelines govern the contribution process. The resolution also requests that such information be updated semi-annually and posted on the company's website. Contributions to be considered are "[m]onetary and non-monetary contributions to political candidates, political parties, political committees and other political entities organized and operating under 26 USC Sec. 527 of the Internal Revenue Code."
//end//