MCDONALD'S CORPORATION | Advisory Vote on Report on Global Public Policy and Political Influence at MCDONALD'S CORPORATION

Status
12.69% votes in favour
AGM date
Resolution details
Company ticker
MCD
Lead filer
Harrington Investments
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
Consumer Discretionary
Company HQ country
United States
Resolved clause
Shareholders request the Company annually issue a transparency report on global public policy and political influence, disclosing company expenditures and activities outside of the United States. Such report should disclose company funding and in-kind support directed to candidates or electioneering, lobbying, and charitable donations for the preceding year including:

Recipients and amounts;
The Company’s membership in or payments to nongovernmental organizations including trade and business associations, scientific or academic organizations and charities;
The rationale for these activities.
The Board and management may, in its discretion, establish a de minimis threshold, such as contributions to an individual or organization totaling less than $250, below which itemized disclosures would not be required.
Supporting statement
In January 2021, international media reported that our Company “paused all of our political giving while we review our policies and procedures” and that moving forward our Company “will ensure that all contributions continue to align with our values and the purpose of our business.”37 This announcement raises significant concerns among investors regarding the global extent of our Company’s political activity given increased public scrutiny and intensifying demand for transparency.

As a truly global corporation, McDonald’s employs approximately 200,000 people and operates in 119 countries.38 While our Company discloses some information about U.S. political activities, spending to influence public policy internationally is not comprehensively disclosed. Currently shareholders receive minimum information on corporate funds expended globally to influence policies.

In March 2021, Vanguard cautioned that “poor governance of corporate political activity, coupled with misalignment to a company’s stated strategy or a lack of transparency about the activity, can manifest into financial, legal, and reputational risks that can affect long-term value.”39

How other organisations have declared their voting intentions

Organisation nameDeclared voting intentionsRationale
LocalTapiola Asset Management LtdForA vote FOR this proposal is warranted as transparency on corporate political activities benefits shareholders, enabling them to assess how a company is managing related risks.

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