Labor & Employment Law

Shareholders Object to Fox Donations to Chamber/Republicans

By James Parks

Even shareholders in Rupert Murdoch’s media empire says he?s gone too far.

In August, News Corp.?the media company owned by Murdoch and the operator of Fox News?gave $1 million to the Republican Governors Association. Several weeks later, it donated another $1 million to the U.S. Chamber of Commerce.

News Corp. shareholder, the Nathan Cummings Foundation, is objecting to the donations and is demanding the company disclose ?the use of corporate assets for any and all political spending.? The foundation says it intends to bring the issue up on the floor at the company?s shareholder meeting Oct. 15 in New York City.

As a News Corp. shareholder, the AFL-CIO also supports good corporate governance and full transparency and accountability around corporate political spending.

In a letter to the News Corp. board of directors, Lance Lindblom and Laura Campos, CEO and director of shareholder activities for Nathan Cummings, respectively, say:

The apparent lack of a strategic rationale for News Corp. raises very serious concerns for shareholders as to whether Mr. Murdoch and the rest of the News Corp. Board of Directors are truly taking shareholder interests into account when they approve political payments made with shareholders? assets.

Lindbolm and Campos point out that the Chamber was accused earlier this month of allegedly using contributions from foreign corporations and other overseas entities to fund its U.S. political activities.

The letter concludes that without full disclosure,

there are clear reputational risks involved in political expenditures?particularly for a news media company?and unnecessary potential for abuse of corporate treasury funds to further the personal political agendas of corporate management.

Another shareholder, F&C Investment Management, recently announced it is opposing the re-election of the chairman of the audit committee at the annual meeting. Karina Litvack, head of governance and sustainable investment at F&C, said in a press release:

We are concerned to see the company deploy shareholder funds for activities that are best left to the individuals whose views they reflect and are not obviously a business matter for the company.

Full post as published by AFL-CIO NOW BLOG on October 14, 2010 (boomark / email).