Supporting Statement: As long-term shareholders of Charles River, we support transparency and accountability in corporate electoral spending. This includes any activity considered intervention in a political campaign under the Internal Revenue Code, such as direct and indirect contributions to political candidates, parties, or organizations, and independent expenditures or electioneering communications on behalf of federal, state, or local candidates.
Political spending can adversely impact a company’s reputation, value, and bottom line. The risk is especially serious when involving trade associations, Super PACs, 527 committees, and “social welfare” organizations – groups that routinely pass money to or spend on behalf of candidates and political causes companies might not otherwise support.
The Conference Board’s “Under a Microscope”1 details these risks, recommends the process suggested in this proposal, and warns: a new era of stakeholder scrutiny, social media, and political polarization has propelled corporate political activity—and the risks that come with it—into the spotlight. Political activity can pose increasingly significant risks for companies, including the perception that political contributions—and other forms of activity—are at odds with core company values.

We ask Charles River to disclose all its electoral spending, including payments to trade associations and other tax-exempt organizations, which may be used for electoral purposes–and are otherwise undisclosed. This would bring our Company in line with leading companies, including Becton, Dickinson and Company, Bristol-Myers Squibb Company, and Boston Scientific Corp. Without knowing the recipients of Charles River's political dollars, we cannot assess alignment with its policies on climate change and sustainability or other areas of concern. Charles River's directors have longer than average tenure. It is, therefore, even more critical that the Board hear from independent shareholders on this issue to avoid groupthink and risk. Charles River ranks in the bottom tier for 2022 CPA-Zicklin Index disclosure