March, 30 2015, 12:15pm EDT
As Dark Money Monsters Torment Investors, Shareholders Need SEC Chair to Be Superhero; They Ask: 'Where Is Mary Jo White?'
Investors and Organizations Launch Anti-Dark Money Ad Blitz to Push Agency for a Rule Requiring Corporations to Disclose Political Spending
WASHINGTON
With monsters on the loose slinging blobs of corporate cash, frantic investors ask, "Who can rescue us from this dark money menace?" In the crowd, a woman remembers rumors that the chair of the U.S. Securities and Exchange Commission (SEC) has special powers to curb corporate political spending. "Mary Jo White is the superhero we need to end this menace," another onlooker shouts. "Where is Mary Jo White?"
That's the narrative of a month-long ad campaign launched today by investors and public interest organizations. The goal is to persuade the SEC to require publicly traded corporations to disclose their political spending.
Since the U.S. Supreme Court's overreaching decision in Citizens United, corporations have had greater leeway to spend shareholder money to influence politics, but no new rules or procedures have been established to ensure that shareholders - those who own the corporations - are informed of decisions about spending in politics.
Subway travelers who enter and exit Union Station in Washington, D.C. - a major transit hub near the SEC's headquarters - will see every available ad space taken up with comic strip-style illustrations of frightened investors and voters calling on SEC Chair Mary Jo White to save them from monsters that have taken shareholder democracy hostage. SEC Chair Mary Jo White is depicted as a superhero who can rescue them from dark money threatening their investments, but where is she? The ads will be promoted by a social media campaign centered around #WhereIsMJW and including an animated video.
The ads and video, available at www.WhereIsMJW.com, are part of a push by the Corporate Reform Coalition to ensure that shareholders and voters know how much corporations spend to influence elections, and which races they fund. The ads were paid for by Avaaz, Public Citizen, Common Cause, U.S. PIRG, Greenpeace, the International Brotherhood of Teamsters and Communications Workers of America.
"From Big Oil to Big Pharma, this undisclosed dark money is rotting our corporate democracy from the inside out, and thousands of citizens are saying no more dirty secrets," said Joseph Huff-Hannon, senior campaigner with Avaaz. "This cheeky ad campaign is calling on SEC Chair Mary Jo White to defend us and our country from these creatures. We know she can. The only question is, will she?"
"Corporate political spending requires particular investor protections because it exposes investors to significant new risks," said Lisa Gilbert, director of Public Citizen's Congress Watch division. Public Citizen is a co-founder of the Corporate Reform Coalition. "Corporate political spending choices may diverge from a company's stated values or policies, or may embroil the company in hot-button issues. Investors have a right to know what candidates or issues their investments are going to support or oppose."
The ad campaign comes in advance of the SEC's spring announcement of its rulemaking agenda. Under former Chair Mary Schapiro, the agency had included a political disclosure rule on its 2013 agenda, but Mary Jo White removed the rule last year, sparking outrage among investors and the public and leading many to ask, "Where is Mary Jo White on this important investor priority?"
A petition requesting the rulemaking was filed in 2011 by a bipartisan committee of leading law professors. A record-breaking million-plus comments have been submitted to the SEC from retail and institutional investors in support of a rule. The comments have come from diverse sources such as John C. Bogle, founder and former CEO of Vanguard; more than 70 current and former members of Congress; five state treasurers; the Maryland State Retirement Agency; US SIF: The Forum for Sustainable and Responsible Investment; and a large group of firms managing more than $690 billion in assets.
As evidence of strong investor concern about political spending, in the past five years, shareholders have filed more than 500 resolutions on corporate political activity. In 2014, resolutions on political activity were the highest scoring proxy proposals, and four proposals received majority support despite opposition from corporate management.
This year, investors have filed more than 110 proposals around corporate political activity - more than a quarter of all shareholder proposals filed. At meetings in April and May, shareholders will go up against some of the largest companies in the world, but most will not achieve the disclosure they deserve. The ad campaign is designed to spotlight the fact that SEC Chair Mary Jo White is the superhero with the power to end the menace of dark money in investments.
Additional quotes:
"Since the U.S. Supreme Court ruled in Citizens United in 2010, the political landscape has changed drastically, but the rules of corporate governance have not caught up. The court's opinion was predicated on disclosure and the process of corporate democracy, but the 2014 midterms were flooded with almost $200 million in dark money, and shareholders, the owners of corporate wealth, had no way of knowing where that money was coming from. Investors need SEC Chair Mary Jo White to act and require all publicly traded corporations to disclose their political spending."
- Emma Boorboor, democracy advocate, U.S. PIRG
"Disclosure of political spending is required for labor organizations. SEC Chair Mary Jo White should make the same requirement for corporations."
- George Kohl, senior director, Communications Workers of America
"Publicly traded corporations, including many in the fossil fuel industry, are getting away with hiding their political spending from shareholders and the public, polluting not only our climate, but our democracy. The public deserves to know how corporations are spending investor cash to influence elections. More than a million people have asked the Securities and Exchange Commission to take action, so the question is, 'Where is Mary Jo White?' "
- Rachel Rye Butler, democracy campaigner, Greenpeace
"The Supreme Court's decision in Citizens United to unleash corporate political spending was premised largely on the idea that voters would know which corporations were investing in which candidates and how much they were giving to each. We thought a little humor might draw attention to the issue while still calling on the need for the SEC to force public companies to provide that vital information."
- Karen Hobert Flynn, senior vice president for strategy and programs, Common Cause
"Corporations are secretly spending millions of dollars on political campaigns, and as investors, the Teamsters are concerned that we cannot evaluate potential conflicts or risks."
- Jim Hoffa, general president, Teamsters. The Teamsters invest more than $100 billion in the capital markets through affiliated pension and benefit funds.
"The SEC has the authority to regulate public corporations in the public interest and to protect investors. Five years after Citizens United allowed new corporate spending in elections, Chair Mary Jo White cannot continue to evade her responsibility to update the agency's rules to require disclosure of corporate political spending in the face of growing need and demonstrated demand."
- Liz Kennedy, campaign strategist and counsel, Demos
Public Citizen is a nonprofit consumer advocacy organization that champions the public interest in the halls of power. We defend democracy, resist corporate power and work to ensure that government works for the people - not for big corporations. Founded in 1971, we now have 500,000 members and supporters throughout the country.
(202) 588-1000LATEST NEWS
Climate Crisis to Cost Global Economy $38 Trillion a Year by 2050
"This clearly shows that protecting our climate is much cheaper than not doing so, and that is without even considering noneconomic impacts such as loss of life or biodiversity," a new study's lead author said.
Apr 18, 2024
The climate crisis will shrink the average global income 19% in the next 26 years compared to what it would have been without global heating caused primarily by the burning of fossil fuels, a study published in Nature Wednesday has found.
The researchers, from the Potsdam Institute for Climate Impact Research (PIK), said that economic shrinkage was largely locked in by mid-century by existing climate change, but that actions taken to reduce emissions now could determine whether income losses hold steady at around 20% or triple through the second half of the century.
"These near-term damages are a result of our past emissions," study lead author and PIK scientist Leonie Wenz said in a statement. "We will need more adaptation efforts if we want to avoid at least some of them. And we have to cut down our emissions drastically and immediately—if not, economic losses will become even bigger in the second half of the century, amounting to up to 60% on global average by 2100."
"I am used to my work not having a nice societal outcome, but I was surprised by how big the damages were."
Put in dollar terms, the climate crisis will take a yearly $38 trillion chunk out of the global economy in damages by 2050, the study authors found.
"That seems like… a lot," writer and climate advocate Bill McKibben wrote in response to the findings. "The entire world economy at the moment is about $100 trillion a year; the federal budget is about $6 trillion a year."
This means that the costs of inaction have already exceeded the costs of limiting global heating to 2°C by six times, the study authors said. However, limiting warming to 2°C can still significantly reduce economic losses through 2100.
"This clearly shows that protecting our climate is much cheaper than not doing so, and that is without even considering noneconomic impacts such as loss of life or biodiversity," Wenz said.
The damages predicted by the study were more than twice those of similar analyses because the researchers looked beyond national temperature data to also incorporate the impacts of extreme weather and rainfall on more than 1,600 subnational regions over a 40-year period, The Guardian explained.
"Strong income reductions are projected for the majority of regions, including North America and Europe, with South Asia and Africa being most strongly affected," PIK scientist and first author Maximilian Kotz said in a statement. "These are caused by the impact of climate change on various aspects that are relevant for economic growth such as agricultural yields, labor productivity, or infrastructure."
However, Wenz told the paper that the paper's projected reduction was likely a "lower bound" because the study still doesn't include climate impacts such as heatwaves, tropical storms, sea-level rise, and harms to human health.
Unlike previous studies, the research predicted economic losses for most wealthier countries in the Global North, with the U.S. and German economies shrinking by 11% by mid-century, France's by 13%, and the U.K.'s by 7%. However, the countries set to suffer the most are countries closer to the equator that have lower incomes already and have historically done much less to contribute to the climate crisis. Iraq, for example, could see incomes drop by 30%, Botswana 25%, and Brazil 21%.
"Our study highlights the considerable inequity of climate impacts: We find damages almost everywhere, but countries in the tropics will suffer the most because they are already warmer," study co-author Anders Levermann, who leads Research Department Complexity Science at PIK, said in a statement. "Further temperature increases will therefore be most harmful there. The countries least responsible for climate change, are predicted to suffer income loss that is 60% greater than the higher-income countries and 40% greater than higher-emission countries. They are also the ones with the least resources to adapt to its impacts."
Wenz told The Guardian that the results were "devastating."
"I am used to my work not having a nice societal outcome, but I was surprised by how big the damages were. The inequality dimension was really shocking," Wenz said.
Levermann said the paper presented society with a clear choice:
It is on us to decide: Structural change towards a renewable energy system is needed for our security and will save us money. Staying on the path we are currently on, will lead to catastrophic consequences. The temperature of the planet can only be stabilized if we stop burning oil, gas, and coal.
McKibben, meanwhile, argued that the findings should persuade major companies to embrace climate action for self-interested reasons. He noted that most corporate emissions come from how company money is invested by banks, particularly in the continued exploitation of fossil fuel resources.
"If Amazon and Apple and Microsoft wanted to avoid a world where, by century's end, people had 60% less money to spend on buying whatever phones and software and weird junk (doubtless weirder by then) they plan on selling, then they should be putting pressure on their banks to stop making the problem worse. They should also be unleashing their lobbying teams to demand climate action from Congress," McKibben wrote.
"These people are supposed to care about money, and for once it would help us if they actually did," he continued. "Stop putting out ads about how green your products are—start making this system you dominate actually work."
Keep ReadingShow Less
Congressional Progressives Unveil 'Bold' Agenda for Second Biden Term
The Congressional Progressive Caucus says its legislative blueprint for 2025 and beyond aims to "deliver equality, justice, and economic security for working people."
Apr 18, 2024
The Congressional Progressive Caucus on Thursday published a "comprehensive domestic policy legislative agenda" for U.S. President Joe Biden's possible second White House term that seeks to "deliver equality, justice, and economic security for working people."
The CPC's Progressive Proposition Agenda is a seven-point plan aimed at lowering the cost of living, boosting wages and worker power, advancing justice, combating climate change and protecting the environment, strengthening democracy, breaking the corporate stranglehold on the economy, and bolstering public education.
"Progressives are proud to have been part of the most significant Democratic legislative accomplishments of this century. We have made real progress for everyday Americans—but there's much more work to be done," Congressional Progressive Caucus Chair Pramila Jayapal (D-Wash.) said in a statement.
"That's why the Progressive Caucus has identified these popular, populist, and possible solutions," she added. "Democrats in Congress can meet the urgent needs people are facing; rewrite the rules to ensure majorities of this country are no longer barred from the American promise of equality, justice, and economic opportunity; and motivate people with a vision of progressive governance under Democratic majorities in the House and Senate and a Democratic White House."
Progressive lawmakers have already introduced bills for many items on the agenda, including a Green New Deal for Public Schools, expanding the Supreme Court, comprehensive voting rights protection, and legalizing marijuana.
Critics noted the conspicuous absence of Medicare for All—once a top progressive agenda item—and foreign policy issues including ending Israel's genocide, apartheid, occupation, settler colonization, and ethnic cleansing in Palestine.
Jayapal toldNBC News that the CPC is focusing its blueprint exclusively on domestic goals—especially ones it feels can be achieved.
"The way we came to this agenda is to say that we were going to put into this agenda things that were populist and possible... and affected a huge number of people," she said. "We haven't taken a position on particularly Israel and Gaza in the progressive caucus, and so that's not on here."
The CPC agenda is backed by a wide range of labor, climate, environmental, civil rights, consumer, faith-based, and other organizations.
"The Congressional Progressive Caucus is leading the way for Congress to address the major issues affecting working families, from reducing healthcare and housing costs to strengthening workers' rights to join unions, earn living wages and benefits, and have safe workplaces," Service Employees International Union president Mary Kay Henry said in a statement.
"SEIU is proud to partner with the CPC to move these priorities forward and build a more equitable economy in which corporations are held accountable for their actions," she added.
Mary Small, chief strategy officer at Indivisible, said: "House progressives were the engine at the heart of our legislative accomplishments in 2021 and 2022. They've continued that momentum to be true governing partners to the Biden administration as those laws and programs are implemented."
"That's why Indivisible is so supportive of the CPC's Proposition Agenda, a bold vision for progressive governance in 2025 and beyond. From reproductive rights to saving our democracy to economic security for all, the CPC is driving forward exactly the sort of legislative goals we want to see in our next governing moment."
That moment is far from guaranteed, with not only the White House hanging in the balance as Biden will all but certainly face former Republican President Donald Trump in November's election but also the Senate Democratic Caucus clinging to a single-seat advantage over the GOP. Republicans currently hold the House of Representatives by a five-seat margin.
Keep ReadingShow Less
'McCarthyism Is Alive and Well': Google Fires 28 for Protesting Israel Contract
"These mass, illegal firings will not stop us," said organizers. "Make no mistake, we will continue organizing until the company drops Project Nimbus and stops powering this genocide."
Apr 18, 2024
The peace coalition No Tech for Apartheid accused Google of a "flagrant act of retaliation" late Wednesday night as the Silicon Valley giant announced it had fired 28 workers over protests against its cloud services contract with the Israeli government.
The firings came after Google organizers held two 10-hour sit-ins at the company's offices in Sunnyvale, California and New York City, demanding the termination of Project Nimbus, a $1.2 billion contract under which Google and Amazon provide cloud infrastructure and data services for Israel—without any oversight regarding whether the Israel Defense Forces uses the services in its occupation of Palestinian territories and bombardment of Gaza.
Workers have denounced Project Nimbus since it was announced in 2021, but Israel's killing of at least 33,970 Palestinians in Gaza since October and its intentional starvation of civilians led employees to escalate their protests.
No Tech for Apartheid said in a statement that Google officials called the police to both offices to arrest nine protesters—dubbed the Nimbus Nine—on Tuesday morning, before utilizing "a dragnet of in-office surveillance" to fire nearly two dozen other employees on Wednesday.
"They punished all of the workers they could associate with this action in wholesale firings," said the coalition, which includes Jewish Voice for Peace and MPower Change, a Muslim-led anti-war group.
Google accused the workers of "bullying," "harassment," defacing property, and physically impeding other employees—allegations No Tech for Apartheid rejected as it noted organizers "have yet to hear from a single executive about" their concerns over Google's collaboration with Israel.
"This excuse to avoid confronting us and our concerns directly, and attempt to justify its illegal, retaliatory firings, is a lie," said the workers. "Even the workers who were participating in a peaceful sit-in and refusing to leave did not damage property or threaten other workers. Instead they received an overwhelmingly positive response and shows of support."
The organizers staged the sit-ins on the heels of reporting in Time magazine about new negotiations between Google and the Israeli government regarding further potential tech contracts.
Kate J. Sim, a child safety policy adviser at Google who said she was among those fired this week, said the terminations show "how terrified [executives] are of worker power."
Google employees have a history of harnessing worker power to change policies at the company. In 2018, Google terminated a deal with the U.S. Defense Department to develop drone and artificial intelligence (AI) technology through a contract called Project Maven. The decision followed the resignations of several employees and the condemnation of thousands of workers.
Calling Google CEO Sundar Pichai and Google Cloud CEO Thomas Kurian "genocide profiteers," No Tech for Apartheid said Wednesday that they will not stop demonstrating against Project Nimbus until they get a similar result.
"The truth is clear: Google is terrified of us," said the group. "They are terrified of workers coming together and calling for accountability and transparency from our bosses... The corporation is trying to downplay and discredit our power.
"These mass, illegal firings will not stop us," No Tech for Apartheid added. "On the contrary, they only serve as further fuel for the growth of this movement. Make no mistake, we will continue organizing until the company drops Project Nimbus and stops powering this genocide."
Keep ReadingShow Less
Most Popular