As U.S. politics heats up, companies seek to avoid controversy

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A record number of U.S. companies are either banning political spending or making sure they disclose it, as they seek to steer clear of controversy ahead of the Nov. 3 election, a new study has found.

The Center for Political Accountability, a non-profit that advocates for corporate transparency, found that 332 companies in the S&P 500 prohibited some kind of political spending, like funding political committees, or disclosed some or all of their election-related spending in 2020, up roughly 9% from 2016.

The Center also found that 162 companies implemented board oversight for political spending, up 46% since 2016. Without board oversight, companies’ lobbyists and local managers are left to handle the spending on their own. “Companies have realized the increased risk in political spending as the political environment has become more hyperpolarized and toxic,” said Bruce Freed, the co-founder of the Center for Political Accountability.Healthcare real estate investment trust Welltower Incwas one of the companies that changed its practices this year.

 

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Weird as a place only refers to a building or location. Some buildings have more than 1 voting area hence the term “station”

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