Investors Call Foul on AT&T’s Involvement in Politics

AT&T’s Support for Political Candidates Seen as Out of Alignment With Company’s Stated Values

FOR IMMEDIATE RELEASE

MEDIA CONTACT: Stefanie Spear, [email protected], 216-387-1609

BERKELEY, CALIFORNIA— MAY 20, 2022—At its annual shareholder meeting on May 19, 44.1% of investors firmly rebuked AT&T for its continued association with politicians and trade associations that conflict with the company’s stated values. The company opposed the shareholder resolution submitted by non-profit advocacy organization As You Sow asking that AT&T analyze the congruence of its political and electioneering expenditures against publicly stated company values and policies. 

“We expect that AT&T will now take seriously the need to monitor, assess, and report publicly on how it ensures that the politicians and trade associations it supports are not working at cross-purposes with the company’s stated values and strategic goals,” said As You Sow’s CEO Andrew Behar.

The resolution was formally presented to AT&T’s shareholders by Meredith Benton of the consultancy Whistle Stop Capital and workplace equity program manager at As You Sow. In doing so, Benton referenced a number of seeming incongruencies between the company’s stated values and its political involvement. She cited AT&T's large contributions to anti-choice political committees despite a stated commitment to gender equality. Also referenced was the company’s association, through their support of specific legislators, with legislation in Texas, that criminalizes support of trans children despite a commitment to the LGBTQ community. Investors have also called out the company’s association with restrictive voting legislation despite a commitment to voting rights and the company’s involvement with a lobbying group slowing U.S. climate legislation, despite a commitment to carbon neutrality.

“Despite a stated commitment to gender equality, AT&T and its PAC are one of the largest corporate donors to politicians and political committees working to restrict access to reproductive health care, a position that imperils the health and well-being of its female workforce,” said Shelley Alpern, director of corporate engagement at Rhia Ventures. “In the 2016-18 election cycles, the total donated to these recipients exceeded $16 million.”

“It’s an incredible risk for AT&T to take, to be so deeply associated with anti-choice legislation,” Benton said. “AT&T believes it needs to be involved in politics, we’re not arguing with that point. It is hard to see why, however, it is not managing the risks involved with supporting politicians that sit so clearly outside of its own company values.”

Investors are likely concerned that AT&T will repeat the mistakes that have recently injured Disney. Disney’s association with the “Don’t Say Gay” Bill in Florida led to protests from employees and consumers. In its efforts to mollify its stakeholders who opposed the bill, the company alienated the bill’s allies. This led to Disney losing its self-governing authority in Florida. 

Already, activist organizations, such as Greenpeace and UltraViolet, have begun to focus on AT&T. For example, while the investor votes were being tallied at the AT&T investor meeting, Greenpeace and other organizations were hosting demonstrations at AT&T’s flagship stores, calling for the company to end its support of legislators with extremist views. 

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As You Sow is the nation’s leading shareholder advocacy nonprofit, with a 30-year track record promoting environmental and social corporate responsibility and advancing values-aligned investing. Its issue areas include climate change, ocean plastics, pesticides, racial justice, workplace diversity, and executive compensation. Click here for As You Sow’s shareholder resolution tracker.

Whistle Stop Capital is a consultancy that offers outsourced sustainable investment services, working with asset owners and advisors to assess and address material social and environmental exposures within their investment portfolios.