UnitedHealth Group Incorporated | Political expenditures misalignment with company values at UnitedHealth Group Incorporated

Status
25.31% votes in favour
AGM date
Previous AGM date
Proposal number
4
Resolution details
Company ticker
UNH
Lead filer
The Educational Foundation of America
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
Health Care
Company HQ country
United States
Resolved clause
RESOLVED: Shareholders request the Board annually publish a report, at reasonable expense, analyzing the congruence of UnitedHealth’s political and electioneering expenditures during the preceding year against its publicly stated company values and policies. The report should state whether UnitedHealth has made, or plans to make, changes in contributions or communications as a result of identified incongruencies.
Whereas clause
WHEREAS: Public data collected by OpenSecrets.org show that UnitedHealth Group (“UnitedHealth”) and its employee PAC rank in the top 1% of political donors.1
As long-term shareholders of UnitedHealth, we support transparency and accountability in corporate electoral spending. Informed disclosure is in the best interest of the company and its shareholders. As the Supreme Court recognized in its 2010 Citizens United decision, such transparency “permits citizens and shareholders to react to the speech of corporate entities in a proper way” and “enables the electorate to make informed decisions and give proper weight to different speakers and messages.”
Greater political spending transparency is associated with increased investment levels, both domestic and foreign, and decreased investment volatility.2 Increased institutional investment, increased analyst following, and decreased analyst forecast error and forecast dispersion are all positively correlated with greater transparency.3
UnitedHealth publicly discloses a policy on corporate political spending and its direct contributions to candidates, parties, and committees. However, greater transparency is warranted because our company does not disclose information regarding misalignment between its political spending and the company’s publicly stated values and vision as articulated in its Sustainability Report and related ESG disclosures. Investors are unable to determine if UnitedHealth is directing its political expenditures in a way that is consistent with company values and interests and mitigates reputation risk.
To minimize values misalignment and reputation and brand risk, UnitedHealth should establish clear policies and reporting on such misalignment.
Supporting statement
SUPPORTING STATEMENT: Proponents recommend, at management discretion, that UnitedHealth include in its analysis metrics that illuminate the degree to which political contributions align with stated values and policy priorities year over year, and present such metrics in the aggregate. Proponents further recommend that the report also contain management’s analysis of risks to our company’s brand, reputation, or shareholder value of political spending, including expenditures for electioneering communications, that conflict with publicly stated company values. “Expenditures for electioneering communications” means spending, from the corporate treasury and from its PACs, during the year, directly or through third parties, in printed, internet, or broadcast communications, which are reasonably susceptible to interpretation as being in support of or in opposition to a specific candidate.

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