DANAHER CORPORATION | Lobbying Expenditures Disclosure at DANAHER CORPORATION

Status
Omitted
AGM date
Previous AGM date
Resolution details
Company ticker
DHR
Lead filer
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
Shareholders request the preparation of a report, updated annually, disclosing:  I. Company policy and procedures governing lobbying, both direct and indirect, and grassroots lobbying 2. Payments by Danaher 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. Danaher's membership in and payments to any tax-exempt organization that writes and endorses model legislation. 4. Description of management's decision-making process and the Board's oversight for making payments described in section 2 above.
Supporting statement
Shareholders request the preparation of a report, updated annually, disclosing:  I. Company policy and procedures governing lobbying, both direct and indirect, and grassroots lobbying 2. Payments by Danaher 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. Danaher's membership in and payments to any tax-exempt organization that writes and endorses model legislation. 4. Description of management's decision-making process and the Board's oversight for making payments described in section 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 Danaher 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 Audit Committee and posted on Danaher's website.  Supporting Statement  Full disclosure of Danaher's lobbying activities and expenditures is needed to assess whether Danaher's lobbying is consistent with its expressed goals and shareholder interests. Danaher spent $1.6 million on 2023 federal lobbying. This does not include state lobbying, where Danaher also lobbies but disclosure is uneven or absent. And Danaher lobbies abroad, spending between ?10,000- 24,999 on lobbying in Europe for 2023. Companies can give unlimited amounts to third party groups that spend millions on lobbying and undisclosed grassroots activity. 1 Unlike many of its peers, Danaher fails to disclose its memberships in trade associations and social welfare groups, as well as its payments, or the amounts used for lobbying. Danaher belongs to the Advanced Medical Technology Association (AdvaMed), American Clinical Laboratory Association (ACLA) and California Life Sciences Association, which together spent over $6.0 million on federal lobbying in 2023, and also the Analytical, Life Science & Diagnostics Association and the MassBio Technology Council. And Danaher's disclosure also leaves out its payments to social welfare groups, including the Alliance for Regenerative Medicine, which spent $840,000 on federal lobbying in 2023. Danaher's lack of disclosure presents reputational risk when its lobbying contradicts company public positions. For example, Danaher is committed to innovating products that improve lives, yet AdvaMed lobbied to weaken mandatory disclosure of medical device incidents.2 And Danaher is committed to improving acute care diagnostics, yet the ACLA has opposed rules to gradually phase in oversight of new tests developed by laboratories as FDA officials have voiced concerns about the accuracy of lab tests.3    Reputational damage stemming from these misalignments could harm shareholder value. Improved Danaher lobbying disclosure will protect the reputation of Danaher and preserve shareholder value.  1 https://theintercept.com/2019/08/06/business-group-spending-on-lobbying-in-washington-is-at-least-double-whats-publicly­reported/.  2 h ttps :/ /www.nbcnews.com/health/health-care/m ed ical-device-makers-spend-m i 11 ions-lobbying-loosen-regs-d-c-n9403 51 .  3 https://apnews.com/article/laboratory-tests-fda-accuracy-patient-safety-4585bat76ad60df641 c5945ab2d4cl 31. 

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