Corporate Political Responsibility

Developed with Erb Institute’s Corporate Political Responsibility Taskforce, in consultation with academics and over 40 stakeholder groups from across the political spectrum, the Erb Principles for CPR offer a thought process for non-partisan, defensible decisions in turbulent times.  The principles of legitimacy, accountability, responsibility, and transparency provide actionable and non-partisan approach to weighing when, how and why to engage in political affairs, to manage risk and advance long-term value creation for business and society. 

This CPR Decision Tool and Executive Conversation Guide is part of a suite of tools and resources that make it easier for companies to take a principled and responsible approach to a specific public affairs decision. Specifically, it is meant to help them apply the Erb Principles for CPR to weigh whether and how to engage in a specific political scenario.

This piece proposes that trade associations are positioned to be powerful groundbreakers for business—helping shape rules that enable long-term value and healthy competition. But without clear standards, the authors argue, these same associations risk acting as bodyguards for narrow interests, distorting markets, block innovation and undermining trust in business and government. This piece proposes applying CPR principles—Legitimacy, Transparency, Accountability, and Responsibility—to guide more consistent, credible association advocacy aligned with shared business and societal goals, and the ultimate promise of free markets.

As investors increasingly focus on systemic risks, few risks are as consequential as the weakening of democratic institutions and the rule of law -- or today’s once-in-a-generation operational and strategic challenges from AI, an increasingly chaotic political environment, and more.  Yet, as an investor, it can be difficult to translate these systemic risks into concrete actions. Focusing on public affairs governance – how companies make decisions about whether and when to engage in the public sphere, can be one helpful lens.

This new tool from Third Side Strategies helps investors to ask sharper questions—of companies and of themselves. It introduces the concept of CPR Governance (a set of best practices for whether and when to engage in the public sphere) which helps investors in two ways: (i) prompting companies to think more concretely about their public affairs practices and strengthen any areas of weakness highlighted by the questions, and (ii) providing investors the information needed to more effectively manage this systemic risk across their portfolio.

The article explains that capitalism and open markets can strengthen democracy by fostering pluralism, competition, and opportunities for independent groups to operate outside government control. It argues the bigger risk is when governments capture businesses through regulation, which reduces that independence and weakens democracy.

This playbook sets out practical guidance for companies on how to optimise their indirect “policy footprint”. It covers how to assess and improve associations' alignment and impact, by clarifying their strategic policy priorities, evaluating where to invest in important trade association relationships, and engaging those associations constructively and effectively. 

Interviews with 48 Americans from across ideological and demographic groups reveal broad commonality in wanting fairness and clear expectations of government—such as equal rule enforcement, responsive leadership, transparent decision-making, and dignified public services. At the same time, people diverge on what constitutes fairness, with some emphasizing opportunity, others consistent process, and others tangible outcomes that prove fairness is real. Provides a starting point for stakeholder engagement, and suggests approaches that speak to concerns across the political spectrum. 

The Grand Bargain Project finds that Americans across party lines identify the same six priorities—economic opportunity, education, healthcare, national debt, clean energy, and tax reform—as critical, with surveys showing over 90% agreement on their importance. Even more encouraging, when comparing the status quo to a shared package of 35 reforms, 77% preferred the reforms. These results point to rare cross-partisan convergence on both the problems and potential solutions, and a possible place for constructive engagement. 

This report presents robust global data showing that democratic erosion—especially in advanced economies—is increasingly tied to higher costs of capital and greater economic volatility. It finds that more polarized environments tend to experience elevated equity risk premiums and reduced investment, posing long-term financial risks. The author urges businesses and investors to proactively incorporate these risks into their strategic planning, treating political instability as a material driver of market performance not just a political issue.

This piece explains “system stewardship,” where investors consider how company actions affect the broader economy and long-term market health. It emphasizes that this approach is not political but financial, highlighting reports showing that climate change and diversity can create systemic risks that investors should address to protect returns.