Case 19: Should Directors Shed Light on Dark Money?
1. What is your reaction to the problem of political spending? What would you do if you were
the CEO of a pharmaceutical company? Would you still belong to PhRMA? Would your
membership have any conditions attached?
If I were CEO of a pharmaceutical company, I would be angry that this action was taken without
2. What is your reaction to the Target situation? How would you handle it if you were the CEO?
Target’s reputation as an LGBT-friendly organization was damaged by the fact that its
membership payments to PhRMA were used in a way directly contrary to its company policies,
3. Do you agree with Ira Millstein? Should companies require trade associations to disclose this
information before they join? Should companies then disclose the information they receive? If a
trade association refuses to provide that information, should the company refuse to join?
Yes, I agree with Ira Millstein, but I would take the requirement two steps further. It is not
enough to disclose political spending after the fact. Any trade association that wants to use trade
association funds for political purposes must get the permission of its members before doing so.
And I do not mean by majority vote. It is likely member companies will disagree. Each one