Corporate Political Responsibility refers to the idea that companies have an obligation to use
their political influence responsibly — which may mean choosing not to engage. Responsible
engagement means considering their obligations to stakeholders, long-term value creation, and
the systems on which we all depend.

In the U.S. today, companies are managing conflicting views about when and how they should
use their voices and their political influence — and facing new questions and new pressures
from employees, investors, lawmakers, and other stakeholders.

To respond effectively, it is increasingly important for corporate leaders to examine their
practices and articulate their rationale for engaging in the political landscape. Many leaders are
looking for a roadmap to help navigate challenges around:

• Responding to requests around engaging in political and social affairs
• Reducing brand risk and responding to employees and other stakeholders
• Addressing misalignment and weighing competing priorities
• Minimizing backlash or retribution
• Integrating policy needed to enable sustainable strategy
• Reducing geopolitical risk and instability

While supportive frameworks have been built around many aspects of corporate social
responsibility, how the private sector can responsibly engage in political issues has been
largely left to individual companies to determine. To help companies manage these risks, the
Erb Institute’s Corporate Political Responsibility Taskforce (CPRT) set out to establish an
actionable, non-partisan framework to enable companies to:

• Determine whether and how to engage in civic and political affairs
• Frame meaningful conversations with stakeholders
• Articulate their reasoning in constructive ways

Created in collaboration with business leaders, stakeholder groups, and experts from across the
political spectrum, the Erb Principles for Corporate Political Responsibility (CPR) help
companies explore critical questions including:

• Legitimacy. On what legitimate basis do we engage in civic and political affairs? When
should we get involved and why?
• Accountability. How do we align our political activities with our commitments to our
purpose, goals, and values?
• Responsibility. How do our political activities support the systems on which our economy,
society, and environment depend?
• Transparency. How do we communicate openly about political activities in a way that
promotes informed decision-making and public trust?

The full text of the Erb Principles for CPR can be downloaded here.

To be responsible, a firm’s political activities need to reflect a legitimate use of resources and
authority, and an authentic basis for engaging. At a minimum, that means complying with laws
and refraining from coercing stakeholders in political affairs. But what is an authentic basis for
engagement? Drawing on the fields of business and human rights, taskforce members and
stakeholders developed three conditions for authentic engagement on a given issue:

• Contribution. Whether the firm has caused or contributed to the issue or is involved through
its products, practices, or people.
• Commitments. Whether the issue affects the firm or its business, has a material impact on
key stakeholders, or relates to its purpose or commitments.
• Consequence. Whether the issue represents a threat to the foundational systems on which
the economy, society, or life depend — and the company has the capability to help.

If any of these conditions is met, then a company has a legitimate rationale for being involved
politically. Communicating this rationale is an essential indicator of respect, especially in an
environment of distrust.

Many global and U.S.-based frameworks touch on aspects of corporate political influence. We

think the Erb Principles for CPR are the best, in part because they offer a comprehensive, non-
partisan approach developed by and with business leaders and stakeholders. Consider starting

with the Erb Principles for CPR because they are:

• Comprehensive. The Erb Principles for CPR offer a holistic approach that helps companies be
consistent across the various channels of political influence, including their public
statements, internal communications, lobbying, political spending, and third-party
affiliations. In addition, they pull together other frameworks that emphasize Transparency
and Accountability (or alignment), while adding a focus on Responsibility and Legitimacy,
which are critical to many stakeholders today.
• Non-partisan but principled. The Erb Principles for CPR offer a thought process to help
companies decide whether and how to engage on political or civic issues, including staying
out of certain issues altogether, regardless of ideological background. This is meant to
provide a place to stand amid shifting political winds in a way that shows respect for varied
concerns.
• Adaptable. The Erb Principles for CPR help companies apply their unique commitments to
values, purpose, business strategy, and stakeholders while also outlining common
elements to establish Corporate Political Responsibility as a shared norm. Also, because
multinational companies operate in multiple countries, we have crafted relatively simple
and general principles that can be tailored for specific regions.
• Multi-sectoral. The Erb Principles were shaped by a group of business executives deeply
familiar with today’s political issues and business imperatives, in consultation with over 40
stakeholder advocacy groups, academic experts, and business network leaders from
diverse backgrounds.