A Corporate Insider on the Model Code: Invaluable Tool, Essential for Risk Management

I was continually on the watch for opportunities to move our legislative and regulatory agenda forward while being aware of the political and reputation risks and rewards. [...] For years, however, the overwhelming focus was much more on the legislative and regulatory side and to a much lesser extent, the political and reputational side. [...] Changes in reaction to the economic downturn and the stresses that accompanied it; access to, and the prevalence of, social media; our more divisive and vocal politics; and our more socially aware and organized shareholders, employees and customers have led to a much steeper risk cliff on the political/reputation side of the scale. [...] Several years ago, The Center for Political Accountability (CPA), with partners at the Zicklin Center for Governance and Business Ethics at The Wharton School at the University of Pennsylvania, created the CPA-Zicklin Index to measure and guide companies’ approach to transparency, political/social accountability and compliance. [...] The CPA is now offering that same ease and flexible guidance to companies in the political contribution space by offering general guidelines to establish an internal process of checks and balances to weigh the effects of political contributions.