Ending corporate secrecy on soft money.

• Position: Political Contributions

Corporate secrecy on political contributions harms shareholders by denying them information critical for evaluating management performance and company behavior, a report from the Center for Political Accountability, Washington, D.C., insists. However, more than 30 major companies soon are expected to face shareholder resolutions calling on them to disclose and explain the business rationale of their political contributions made with corporate funds, as well as identify the officers involved in the donation decisions. Filed by more than 12 institutional investors, the resolutions are modeled on one drafted by the Center.

The "Green Canary" study suggests that company disclosure of corporate political contributions could alert shareholders to signs of possible management, reputational, and financial problems that could depress a company's stock price.

"Corporate secrecy surrounding political donations carries a high price tag for shareholders," contends CPA Co-Director Bruce R Freed. "As we saw from the collapses of Enron, Global Crossing, WorldCom, and Westar Energy, misbehavior aided and abetted by undisclosed corporate contributions can cost shareholders billions of dollars in lost...