Sonoco | Political Contributions at Sonoco Products Company

Status
34.29% votes in favour
AGM date
Previous AGM date
Proposal number
5
Resolution details
Company ticker
SON
Lead filer
Individual
Resolution ask
Amend board structure
ESG theme
  • Governance
ESG sub-theme
  • Lobbying / political engagement
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Materials
Company HQ country
United States
Resolved clause
Resolved: Shareholders request that Sonoco Products provide a report, updated semiannually, disclosing the
Company’s:
1. Policies and procedures for making, with corporate funds or assets, contributions and expenditures (direct
or indirect) to (a) participate or intervene in any campaign on behalf of (or in opposition to) any candidate for
public office, or (b) influence the general public, or any segment thereof, with respect to an election or
referendum.
2. Monetary and non-monetary contributions and expenditures (direct and indirect) used in the manner
described in section 1 above, including:
a. The identity of the recipient as well as the amount paid to each; and
b. The title(s) of the person(s) in the Company responsible for decision-making.
The report shall be presented to the board of directors or relevant board committee and posted on the
Company’s website within 12 months from the date of the annual meeting. This proposal does not encompass
lobbying spending.
Supporting statement
SUPPORTING STATEMENT
As a long-term shareholders of Sonoco, I 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.
A company’s reputation, value, and bottom line can be adversely impacted by political spending. The risk is
especially serious when giving to 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 that
a company might not otherwise wish to support.
The Conference Board’s 2021 “Under a Microscope” report 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.”
This proposal asks Sonoco Products to disclose all of 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 a growing number of leading companies, including
Celanese Corp., WestRock Co., and International Paper Co., which present this information on their websites.
Without knowing the recipients of our company’s political dollars shareholders cannot sufficiently assess whether
our company’s election-related spending aligns or conflicts with its policies on climate change and sustainability,
or other areas of concern. Thus it will be a best practice for Sonoco Products to expand its political spending
disclosure.

Filed by John Chevedden

DISCLAIMER: By including a shareholder resolution or management proposal in this database, neither the PRI nor the sponsor of the resolution or proposal is seeking authority to act as proxy for any shareholder; shareholders should vote their proxies in accordance with their own policies and requirements.

Any voting recommendations set forth in the descriptions of the resolutions and management proposals included in this database are made by the sponsors of those resolutions and proposals, and do not represent the views of the PRI.

Information on the shareholder resolutions, management proposals and votes in this database have been obtained from sources that are believed to be reliable, but the PRI does not represent that it is accurate, complete, or up-to-date, including information relating to resolutions and management proposals, other signatories’ vote pre-declarations (including voting rationales), or the current status of a resolution or proposal. You should consult companies’ proxy statements for complete information on all matters to be voted on at a meeting.