During the hearing the matter of donations to political parties by companies was raised. CSA was asked its views on whether companies should make political donations and to what extent shareholders have a role to play in approving donations.

1. Does your company make donations to political parties at the local, state, or federal level?

Yes 29%
No 71%
(1 = ‘Don’t Know’)

Comments:

The only amounts paid are attendance at functions where it is considered there will be value for the company.
We do pay to be observers at party conferences but we don’t consider this a donation.
If donations are made, it should be done on an “even handed” basis to the “major” parties, (Liberals, Labour, Democrats). But then, why should these three only benefit ?

2. If yes, does your company disclose these donations and their amounts to shareholders?

Yes 17%
No 83%

Comments:

Public disclosure through returns to the Australian Electoral Office.
Disclosed in Annual Report.
These figures are on public record through disclosure to the Electoral Commission. If raised at AGMs the figures are disclosed to shareholders by the Chairman at the meeting.

3. Does your company have a policy for the giving of political or charitable donations?

Yes 79%
No 21%
(1 = ‘Don’t Know’)

Comments:

We do not make donations of any kind. We feel it is not up to the company to decide on how to donate shareholders funds, that is a matter for individuals to decide for themselves.
Limited charitable donations only. Each case is judged on its merits but in some cases is influenced by Board members.
Generally only before state/federal elections.

4. If yes, is that policy:

(a) disclosed to shareholders?

Yes 59%
No 41%
(1 = ‘Don’t Know’)

Comments:

(b) subject to shareholder approval?

Yes 0%
No 100%

Comments:

5. Do you believe there should be shareholder participation in determining political or charitable donations by companies?

Yes 14%
No 86%

Comment:

Political donations — yes. Charitable Donations — No.
This is a very appropriate topic for discussion at an AGM but I don’t believe it should be the subject of formal shareholder approval.
Companies should play no part in donations, however if they do, a separate fund should be set aside, with trustee supervision and shareholders should decide on the beneficiaries.
Where the amount or services donated is above a predetermined level eg above $10,000 or a percentage of shareholder funds.
Any shareholder has the right to write to/contact the chairman, etc. and make their views know. Obviously, if there is a large number of comments/opinions being expressed, such views are taken into consideration.
Would be difficult to manage as there would not be consensus.
Given the potential range of charitable beneficiaries; if everybody had a say, potentially nothing may be determined or the donations made would be insignificant to cover a multitude of beneficiaries agreed upon.
I think a broad policy statement, leaving discretion in implementation to the board, is appropriate for shareholder approval.
This would represent an unnecessary incursion into the role of management. If management wants to seek shareholder views that is fine but they shouldn’t be obliged to do so.

6. Who in your organisation makes the decisions regarding political or charitable donations?

The board 71%
Chief Executive 54%
Committee 18%
Other 11%

7. Do you believe that political donations are an essential part of doing business?

Yes 25%
No 75%

Comment:

Support of political parties who have the policies that the organisation believes are in the interest of the company ie shareholders.

8. If your organisation does have a political or charitable donations policy, is it a transparent process?

Yes 64%
No 36%