Nathan Cummings Foundation Presses News Corporation for Broader Political Spending Reform

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May 18, 2011, 04:35 ET

Welcomes Crucial Step Forward; Revised Policy Acknowledges Shareholder Concerns

NEW YORK, May 18, 2011 /PRNewswire/ -- The Nathan Cummings Foundation, an institutional investor and News Corporation (NASDAQ:NWS) shareholder, wrote to the Lead Director of News Corp. on Wednesday to call on the News Corp. Board to take further action to improve the oversight and disclosure of the Company's political spending. The Foundation welcomes the recent steps taken by the News Corp. Board to provide disclosure of corporate assets used for political expenditures through the adoption of a Political Activities Policy ("Policy"). While the Policy represents a significant step forward, the Foundation stresses that the new Policy leaves unresolved many of the core issues raised in prior engagements with the Board. Specifically, the announced Policy fails to address pivotal concerns regarding board oversight of the Company's political spending and disclosure of non-earmarked payments to trade associations and other third party groups. In addition, the Policy makes no provision for providing investors with the strategic rationale underlying News Corporation's political spending, something that is particularly important given the Company's history of controversial contributions such as the much-publicized payments to the Republican Governors Association (RGA) and the U.S. Chamber of Commerce in 2010.

"The revised Policy acknowledges the importance of the issue to shareholders and the need for reform in News Corp.'s practices," said Lance E. Lindblom, President and CEO of the Nathan Cummings Foundation. "While we welcome these changes as a crucial first step in the right direction for News Corp., the new Policy does not go far enough. The Board must provide oversight and complete transparency of the political spending process going forward."

The Foundation first engaged News Corp. on this issue last fall, expressing concerns over the Company's apparent contributions to the U.S. Chamber of Commerce and the Republican Governors Association. The Foundation is concerned about possible damage to long-term shareholder value and requested that the Company provide shareholders with a list of its political contributions and its political spending guidelines at the Company's annual shareholder meeting last October. The Foundation also called on the Company's Board to conduct oversight of the Company's political spending.

The Nathan Cummings Foundation is an endowed institution with approximately $440 million of investments. As a private foundation, the Nathan Cummings Foundation is committed to the creation of a socially and economically just society and seeks to facilitate sustainable business practices by supporting the accountability of corporations for their actions. As an institutional investor, the Foundation believes that the way in which a company approaches major public policy issues has important implications for long-term shareholder value.

SOURCE The Nathan Cummings Foundation