Companies Leave US Chamber of Commerce
In the last two weeks, four large companies have withdrawn their membership from the US Chamber of Commerce, due to the Chamber’s criticism of legislation meant to curb climate change. Utility companies PG&E, Exelon and PNM Resources, along with computer firm Apple have all renounced their membership. Nike has stepped down from the Chamber’s board, but not withdrawn Chamber membership. Each of these companies has been supportive of climate change reduction bills, while the Chamber has been a climate change skeptic and has relentlessly lobbied against environmental regulation.
The US Chamber of Commerce is the world’s largest businesses federation, and it lobbies Congress and the White House on nearly every issue pertaining in some way to business. Companies often defer their views and response on critical issues to trade organizations (like the Chamber) that then speak for their industry collectively. The problem is that these trade organizations place the short term profit of their membership first, and member companies don’t have an outlet to disagree.
MMA has experienced this problem when engaged in corporate dialogue. The company in dialogue, for example, may say great things to shareholders about its efforts to reduce its environmental footprint and praise government efforts to reduce pollution. But then on issues of national importance, the company will let its industry association be its mouthpiece, and the association’s stance will often completely contradict the company’s social responsibility policy.
From a stewardship investing perspective, it’s positive to see companies standing up for what they believe despite pressure from the business lobby. Perhaps it will lead to more independent thinking and a greater propensity to embrace social responsibility.
