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Public policy plays a critical role in regulating and framing the relationship between companies, investors and wider society and consequently underpins the progress on environmental, social and governance issues. Companies have a legitimate business interest in undertaking political engagement to shape laws and policies that affect them. By sharing their expertise, legitimate needs and evidence about policy problems and how to address them, businesses can bring policy makers’ attention to much-needed insights and data on policy matters as well as facilitate informed decision-making. However, as corporate political engagement practices become more transnational and sophisticated, concerns about the effectiveness of existing regulations in minimising risks of policy capture and undue influence are mounting. 

Database on corporate political engagement regulations

This database provides public officials, businesses, investors and citizens with detailed information on regulations and soft law instruments that frame corporate political engagement activities in selected jurisdictions including:

Interactions between lobbyists and the public decision-making process

Political finance

Conflicts of interests (including pre/post public employment)

Shareholder rights on political engagement activities

13. Spain
14. South Africa
15. United Kingdom
16. United States
17. European Union

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Report

This report highlights key trends in regulations that shape corporate political engagement activities in 17 jurisdictions, puts a spotlight on remaining areas of unregulated influence, and lays out critical areas for investor advocacy with companies and policymakers.

Read the report

+ Lobbying

To address lobbying-related risks, a growing number of jurisdictions are opting to regulate lobbying activities:

• Eight jurisdictions (Australia, Canada, France, Germany, Italy, Netherlands, the United Kingdom, the United States) and the European Union have voluntary or mandatory public registries in place where lobbyists disclose information on their activities.

• Two jurisdictions and the European Union require certain categories of public officials to publish information on their meetings with lobbyists through open agendas.

Even in jurisdictions where transparency in lobbying is provided, the public availability of the disclosed information does not always provide enough scrutiny on the specific objectives of lobbying activities and the public officials or decisions targeted.  

+ Political finance

Political finance regulations are more robust if compared to lobbying activities, though loopholes and grey areas remain. While a majority of the jurisdictions analysed ban private donations from foreign interests, corporations, state-owned enterprises or trade unions, a variety of techniques are often used to circumvent them.

Third-party spending remains a challenge and can constitute a means of re-channelling election spending through committees and interest groups that are independent in name only.  

+ Pre/post public employment

Most jurisdictions have established rules governing how members of the executive branch may join the private sector. However, fewer countries have adopted provisions for members of legislative bodies.

Only three countries (France, Italy and the United States) have adopted standards for the hiring of private sector employees joining the public sector.  

+ Shareholder rights

Few regulations require the approval of political contributions by shareholders or corporate boards. Only two jurisdictions have relevant regulations on the mandatory approval of political contributions by shareholder (the United Kingdom) or board of directors (India) resolutions authorising such activities.  

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