A private research group is urging corporations to establish strong internal controls and oversight over political donations, after Target Corp. went through a national backlash for contributing to a group supporting a conservative Republican candidate in Minnesota.
The New York-based Conference Board released a handbook on corporate political activity on Monday.
The handbook recommends that corporate management and boards monitor political spending closely to ensure it's in the best interest of the business and its shareholders, because of the risks such donations pose to corporate reputations.
Handbook co-author Paul DeNicola says corporate political activity has increased since a U.S. Supreme Court ruling early this year that allowed corporations to spend company funds directly on political campaigns. DeNicola says he expects a new round of shareholder resolutions focused on political donations as companies hold their annual meetings.
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