Global firms make steady progress on lobbying disclosure

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Many of the world's largest multinational companies are now providing more information on their lobbying practices, according to new research.

An analysis of the Standard & Poor's Global 100 by the global environment network WWF and the SustainAbility consultancy found that although none disclose their lobbying positions in an 'integrated' way, 51 give at least some details.

This represents 'substantial progress' since 2000, when a similar study found that only a handful of large companies revealed details of their lobbying.

Both organizations say more openness is needed, but conclude that 'in spite of continued concerns about corporate lobbying, it is clear transparency has improved markedly in the last few years'.

Eight of the 51 companies  provided 'systematic' lobbying information - BASF, BP, Chevron, Dow, Ford, General Motors, GlaxoSmithKline and Hewlett-Packard - and ten were providing a lower 'developing' level of information. The rest furnished only 'basic' details.

UK businesses were most likely to disclose their lobbying positions, followed by those in the Netherlands and the US. Japan was a notable laggard: of the 12 companies surveyed, only Toyota made any reference to lobbying. Researchers were unclear why Japanese companies generally failed to provide information of this kind.

The chemicals company BASF, which reports in detail on its contributions to the public debate on nanotechnology, is cited as one example of good practice.

The study, Influencing Power, says that despite good work from individual companies, more collaboration among businesses in the same sector is needed. It recommends that leading companies work with trade associations to promote greater openness.

However, links with trade bodies can increase reputational risk, if their lobbying works against other company relationships. Companies should therefore 'monitor and report on alignment of lobbying throughout the organization' to identify any internal and external inconsistencies and 'clearly communicate' these.