Salesforce.com, inc. | Lobbying Expenditures Disclosure at Salesforce.com, Inc.

Status
Omitted
AGM date
Previous AGM date
Resolution details
Company ticker
CRM
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
Technology
Company HQ country
United States
Resolved clause
Resolved, shareholders of Salesforce, Inc. ("Salesforce " or "Company") request the preparation of a report to shareholders, updated annually, disclosing: Company policy and procedures governing lobbying, both direct and indirect, and grassroots lobbying communications. Payments by Salesforce used for (a) direct or indirect lobbying or (b) grassroots lobbying communications. This would include the recipient and the amount of the payment for indirect lobbying through a trade association. A description of management and Board decision-making processes and oversight for making payments described in section 2 above, as well as a description of actions taken by the Company when lobbying efforts of trade associations and social welfare groups, receiving Company payments, contradict the Company's public position. 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 communication recipient 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 Salesforce 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 and Governance Committee and posted on the company website.
Supporting statement
Resolved, shareholders of Salesforce, Inc. ("Salesforce " or "Company") request the preparation of a report to shareholders, updated annually, disclosing: Company policy and procedures governing lobbying, both direct and indirect, and grassroots lobbying communications. Payments by Salesforce used for (a) direct or indirect lobbying or (b) grassroots lobbying communications. This would include the recipient and the amount of the payment for indirect lobbying through a trade association. A description of management and Board decision-making processes and oversight for making payments described in section 2 above, as well as a description of actions taken by the Company when lobbying efforts of trade associations and social welfare groups, receiving Company payments, contradict the Company's public position. 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 communication recipient 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 Salesforce 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 and Governance Committee and posted on the company website. Supporting Statement Full disclosure of Salesforce lobbying activities and expenditures is needed to assess whether the company's lobbying is consistent with its expressed goals and in shareholders' best interests. Salesforce spent $8.7 Million from 2021 ? 2024 on federal lobbying and Open Secrets listed them as in the top 198 out of 9,025 companies lobbying. That amount does not include state lobbying, where Salesforce also lobbies, but disclosure is uneven or absent. Salesforce commendably states its public policy advocacy is guided by its commitment to equality and Sustainability. Salesforce already publishes a substantial Public Policy report. That excellent Public Policy report should be expanded to provide disclosure of state lobbying expenditures. Companies can give unlimited amounts to third-party groups that spend millions on lobbying and undisclosed grassroots activity.1 Salesforce does a good job of disclosing categories of individual payments to trade associations and social welfare groups such as the Business Roundtable and US Chamber of Commerce, which together spent over $89 million on federal lobbying for 2023. However, reputational damage stemming from misalignments with third-party groups could harm shareholder value. Salesforce is a real leader in addressing climate change, but the Business Roundtable filed an amicus brief opposing the Securities and Exchange Commission climate risk disclosure rules,2 and the Chamber opposed the Paris Climate Accord. Our Company produces an exceptional Sustainability report. To address reputational risks, the Sustainability report should be expanded to include a description of actions taken when third-party groups receiving Company payments contradict the Company?s public position. 1 https://theintercept.com/2019/08/06/business-group-spending-on-lobbying-in-washington-is-at-least-double- whats-publicly-reported/. 2  https://www.eenews.net/articles/investors-question-business-roundtables-climate-rule-battle/.

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