Google Inc. (Alphabet Inc.) | Lobbying report at Google Inc. (Alphabet Inc.)

Status
17.85% votes in favour
AGM date
Previous AGM date
Proposal number
6
Resolution details
Company ticker
GOOGL
Lead filer
United Church Funds
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
Resolved, stockholders 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 by Alphabet 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 Alphabet is 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 Committee and posted on Alphabet’s website.
Supporting statement
Supporting Statement



Alphabet spent $105,845,000 on federal lobbying from 2015 – 2021. This does not include state lobbying. Alphabet lobbied in at least 38 states in 2021. Alphabet also lobbies abroad, “being accused of shady lobbying”1 and spending between €6,000,000 – 6,499,999 on lobbying in Europe for 2021.



Companies can give unlimited amounts to third party groups that spend millions on lobbying and undisclosed grassroots activity.2 Alphabet lists support of 369 trade associations (TAs), social welfare groups (SWGs) and nonprofits for 2022, yet fails to disclose its payments, or the amounts used for lobbying. Alphabet belongs to the Chamber of Commerce and Business Roundtable, which have spent over $2.1 billion on lobbying since 1998, supports SWGs that lobby like National Taxpayers Union3 and Taxpayers Protection Alliance,4 and funds controversial nonprofits like the Federalist Society5 and Independent Women’s Forum, which “routinely pushes policy positions that are highly favorable to its corporate donors.”6



Alphabet’s lack of disclosure presents reputational risks when its lobbying contradicts company public positions or hides payments to SWGs. Alphabet has drawn attention for funding “dark money groups” to oppose antitrust regulation.7 Highlighting dark money risks, utility FirstEnergy was fined $230 million for funneling $60 million through SWG Generation Now in a bribery scandal.8 On company positions, Alphabet believes in addressing climate change, yet the Business Roundtable lobbied against the Inflation Reduction Act.9 And while Alphabet does not belong to the American Legislative Exchange Council, which is attacking so called woke capitalism,10 it is represented by the Chamber, NetChoice and National Taxpayers Union, which all sit on its Private Enterprise Advisory Council.



Last year, this proposal received majority support from outside shareholders.

How other organisations have declared their voting intentions

Organisation nameDeclared voting intentionsRationale
Kutxabank Gestion SGIIC SAU.For
Anima SgrForHowever, Alphabet's disclosures do not include payments for trade association memberships or the amount of its dues to third-party organizations that may be used for lobbying purposes. The company states that it prohibits third parties from using its funds for "political expenditures," but does not clarify that lobbying expenses are included in that prohibition. Although the company ranks highly on the CPA-Zicklin Index, the Index itself notes that it does not cover disclosures related to lobbying.
Additional disclosure around its indirect lobbying activities and expenditures would allow shareholders to better assess Alphabet's use of corporate funds for lobbying and its management of related risks.
EFG Asset ManagementFor
VidaCaixaFor
Rothschild & co Asset ManagementFor

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