Congress Should Drop Unpopular Proposal to Conceal Bad Corporate Practices

September 16, 2024

Congress Should Drop Unpopular Proposal to Conceal Bad Corporate Practices

WASHINGTON, DC - A new Republican-backed proposal could limit disclosure requirements of corporations' business records and create a new, taxpayer-funded advisory body to increase corporate influence at the Securities Exchange Commission (SEC) called a "Public Company Advisory Committee."

Tomorrow, (Sept. 17) the House of Representatives Rules Committee is scheduled to vote on advancing two "Anti-ESG" bills H.R. 4790 and H.R. 5339, which seek to limit the type of information about a corporation's business record that is disclosed to pension and retirement fund managers, investors, and the public. These records outline key business practices such as the utilization of any slave or forced labor overseas, product safety violations including harm to consumers, injuries, or deaths, financial risks related to a company's environmental record and any instances of gender discrimination.

An amendment to H.R. 4790 proposed by Representative Sean Casten (D-IL) would delete the provision establishing the "Public Company Advisory Committee" in order to limit the influence of large corporations over SEC disclosure obligations and shareholder voter rules. The proposed committee would include business executives, brokers and corporate officers all tasked with advising the SEC on corporate regulations, creating a major conflict of interest. The bill also covers all travel and expenses for committee members.

Jon Golinger, a democracy advocate with Public Citizen, issued the following statement in response:

"Forcing taxpayers to foot the bill for corporate executives to fly into D.C. so they can interfere with the jobs of the government watchdogs who oversee them is a baffling idea that only a corporate lobbyist could love. And, in fact, they do; the only cheerleaders for this incredibly unpopular idea have been big business lobbyists in Washington.

Polling has shown that more than two-thirds of voters overwhelmingly oppose this Corporate Executive Advisory Committee proposal on a bipartisan basis and that Republican voters hate it the most. We urge Committee members to approve Rep. Casten's amendment to strike this taxpayer-funded gift for corporate executives."