Nike is under increasing pressure regarding political spending as investors demand greater transparency and reporting on political contributions.
Aligning values
Shareholders are due to vote at the company’s annual general meeting in the wake of the sportswear giant unveiling an advertising campaign featuring NFL quarterback-turned-activist Colin Kaepernick. The campaign led some consumers to call for a boycott of the company and others to buy more product. Investors are pressing for greater disclosures to ensure alignment of the company’s core values with its contributions. The Nike board is recommending that its shareholders vote against the resolution for greater political-spending transparency.
Competitive disadvantage
According to Nike, the company’s existing policies and disclosures have proper oversight and give shareholders enough information to evaluate any risk related to political contributions, according to its proxy statement. According to the proxy statement, enhanced transparency would put Nike at a ‘competitive disadvantage’ because it would reveal the company’s ‘strategies and priorities designed to protect the economic future.’ Nike has rebuffed previous demands for greater disclosure, and received proposals for improved political spending disclosures five times since 2012.
Email your news and story ideas to: [email protected]
