An increasing number of public companies in the past several years have voluntarily opted to disclose corporate donations above and beyond what is required by the law. Josh Rosenstein comments on the implications reporting these contributions may have for companies.

“If you disclose that you have given to a [social welfare organization] or other independent expenditure group, and that intermediary in turn supports a candidate on the far right on the far left, there has to be and there is a concern that your business will take a hit, either by a boycott or otherwise, simply because the country is so polarized,” he said.

In addition, Rosenstein said, when a company plays in the political-contribution space and opts to make public disclosures about that involvement, it should have a robust compliance program that ensures it follows its own obligations regarding political spending and involves political law experts, whether in-house or outside.

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