Salesforce.com, inc. | Lobbying Expenditures Disclosure at Salesforce.com, inc.

Status
Withdrawn
AGM date
Resolution details
Company ticker
CRM
Lead filer
Boston Common Asset Management
Resolution ask
Report on or disclose
ESG theme
  • Governance
ESG sub-theme
  • Lobbying / political engagement
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Technology
Company HQ country
United States
Resolved clause
Shareholders request the preparation of a report, updated annually, disclosing: 1. Company policy and procedures governing lobbying, both direct and indirect, and grassroots lobbying communications. 2. Payments used for (a) direct or indirect lobbying or (b) grassroots lobbying communications, in each case including the amount of the payment and the recipient. 3. Description of management’s and the Board’s decision-making process and oversight for making payments described in sections 2 above. For purposes of this proposal, a grassroots lobbying communication is a communication directed to the general public that (a) refers to specific legislation or regulation, (b) reflects a view on the legislation or regulation and (c) encourages the recipient of the communication to take action with respect to the legislation or regulation. Indirect lobbying is lobbying engaged in by a trade association or other organization of which they are a member. Both direct and indirect lobbying and grassroots lobbying communications include efforts at the local, state and federal levels. The report shall be presented to the Nominating and Corporate Governance Committee and posted on their website.
Whereas clause
ull disclosure of salesforce.com inc.’s (Salesforce) lobbying activities and expenditures to assess whether its lobbying is consistent with Salesforce’s expressed goals and shareholders’ best interests.
Supporting statement
Salesforce fails to provide an annual report breaking out its lobbying payments by federal, individual states, trade associations and social welfare groups. Salesforce spent $9,480,000 from 2016 – 2020 on federal lobbying. This does not include state lobbying, where Salesforce also lobbies but disclosure is uneven or absent. And Salesforce lobbies abroad, spending between €800,000 – 899,999 on lobbying in Europe for 2020. Companies can give unlimited amounts to third party groups that spend millions on lobbying and undisclosed grassroots activity. These groups may be spending at least double what’s publicly reported.1 Salesforce lists memberships in 65 trade associations for 2020, yet fails to disclose its payments, or the amounts used for lobbying. Salesforce belongs to the Business Roundtable, National Association of Manufacturers and Chamber Commerce, which together spent $108,148,000 on lobbying for 2020 and have drawn attention for launching a massive lobbying blitz against raising corporate taxes to pay for infrastructure.2 Salesforce’s lack of disclosure presents reputational risks when its lobbying contradicts company public positions. For example, Salesforce believes climate change is an urgent crisis, but the Chamber blocks climate action, leading to student groups to write to our company over the Chamber’s lobbying.3 Salesforce publicly supports voter rights, yet the Chamber lobbied against the For the People Act, resulting in additional scrutiny for our company.4 And while Salesforce has drawn negative attention for avoiding federal income taxes,5 its trade associations are lobbying against corporate taxes to fund infrastructure.We believe that companies should ensure there is alignment between their own positions and their lobbying, including through third parties. Thus, we urge Salesforce to expand its lobbying disclosure.

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