S&P 500 companies that changed their political giving policies – Quartz

Do you have a US stock portfolio, retirement account, or pension? You are probably invested in several S&P 500 companies.

In light of the violence on the United States Capitol and votes by some members of Congress against the certification of the January 6 presidential election results, many of these companies have announced adjustments to their political contributions. Quartz surveyed all members of the Standard & Poor’s 500 Index to find out how they are changing their policies. We called and emailed the 500 companies that make up the index, in addition to collecting information and company statements. These are some of the largest and most prominent publicly traded companies in the United States; at the time of the certification vote, their combined market value was approximately $ 34 trillion.

Together, the S&P 500 companies make up the bulk of many investors’ portfolios, whether directly through individual stock purchases or passively through index funds. Exchange Traded Funds (ETFs) that track the S&P 500 are the most popular ETF investments and are managed by companies such as State Street, Vanguard, and BlackRock.

It is illegal for companies to contribute directly federal political campaigns

US election laws prevent companies from using company funds to support a political candidate. Instead, employees of these companies can make voluntary contributions to political action committees associated with the company. Known as PACs, they make contributions to applicants on behalf of contributors. Companies can support the effort by bearing some of the fund’s operational costs.

Trade groups and industry lobbies to which companies belong typically make a large number of contributions to industry supporters in Congress. This data does not cover trade groups that lobby on behalf of companies.

Companies that have stopped PAC contributions to politicians who voted against electoral certification

Some of these companies have stated that these contribution bans relate only to a candidate’s current term or the current session of Congress. Others have not given an end date – meaning the ban could be eternal or it could last until the company thinks the chances of public scrutiny are lower.

Companies that have stopped making PAC contributions to all politicians

Some companies don’t want anything to do with politics right now; others simply follow their typical contribution schedule. The scrutiny of donations has led some companies to say they will “suspend” or “suspend” all PAC contributions. Some suspensions will last for a fixed period ranging from 30 days to one year; others are undefined or will end after the company reviews its policies. Democrats – who all voted to certify the election results – have cried foul. “I don’t know what you gain by cutting everyone off. You should penalize those who are responsible, ”Senator Ben Cardin told Politico.

The reality of campaign contributions, however, is that there has to be a campaign to contribute to. Withholding donations for a quarter or a year is a paper tiger, especially if the PAC typically only gives candidates out in election years.

Companies that have not made any concrete changes to their CAP contributions

A number of companies on this list have indicated that they are revising their policies but have not yet made any changes. Others said they will continue to assess candidate-by-candidate contributions – including their certification votes – to ensure their money supports people with similar values ​​to the company.

Companies making other changes to their CAP policies

Some companies would not categorically say they would stop donations to politicians who voted against voter certification, but have made explicit statements to indicate that they will not support candidates they believe do not “respect the rule of law.” “, for example. Others said they were reassessing their contributions.

Businesses that don’t have a PAC or say they don’t contribute to federal campaigns

Not all businesses have a PAC. Those who do may never give to members of Congress, or not in the most recent election cycle.

Companies that did not respond to Quartz or declined to comment