Organization: Ford Motor Company

Year: 2018

Description: Whereas, we believe in full disclosure of Ford Motor’s (“Ford”) direct and indirect lobbying activities and expenditures to assess whether Ford’s lobbying is consistent with its expressed goals and in the best interests of shareholders.
 
Resolved, the shareholders of Ford request the preparation of a report, updated annually, disclosing:
 
1.   Company policy and procedures governing lobbying, both direct and indirect, and grassroots lobbying communications.
 
2. Payments by Ford 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. 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 Ford 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 or other relevant oversight committees and posted on Ford’s website. 
 
Supporting Statement
 
As shareholders, we encourage transparency and accountability in the use of corporate funds to influence legislation and regulation, both directly and indirectly. Ford spent $38.6 million from 2010 – 2016 on federal lobbying (opensecrets.org). This figure does not include lobbying expenditures to influence legislation in states, where Ford also lobbies but disclosure is uneven or absent. For example, Ford spent $2,445,024 on lobbying in California from 2010 – 2016. Ford’s lobbying over fuel efficiency standards has attracted media attention (“EPA Chief Pruitt Met with Many Corporate Execs. Then He Made Decisions in Their Favor.” Washington Post, September 23, 2017).
 
Ford sits on the boards of the Chamber of Commerce, which has spent more than $1.3 billion on lobbying since 1998, and the National Association of Manufacturers, which spent over $25 million lobbying in 2015 and 2016. Ford does not disclose its memberships in, or payments to, trade associations, or the amounts used for lobbying.
 
We commend Ford for ending its membership in the American Legislative Exchange Council (ALEC) in 2016 (“Ford & LEGO Gang Up On Climate-Denying ALEC,” CleanTechnica, February 20, 2016). However, we are concerned that Ford’s lack of trade association lobbying disclosure presents significant reputational risk. For example, Ford believes climate change is real and is committed to reducing greenhouse gas emissions, yet the Chamber has consistently opposed legislation and regulation to address climate change. And this values incongruity has drawn media scrutiny (“Paris Pullout Pits Chamber against Some of Its Biggest Members,” Bloomberg, June 9, 2017).
 
Transparent reporting would reveal whether company assets are being used for objectives contrary to Ford’s long-term interests.