Microsoft will no longer support ALEC with its membership, the company wrote to social investment advisors who have been pressuring it in that direction.
The company – like Google, Facebook, eBay, Yahoo and Yelp – has been a member of ALEC’s Communications and Technology Task Force, which creates legislation that serves the industry.
In a letter to Walden Asset Management and The Sustainability Group of Loring, Wolcott and Coolidge, Microsoft says: "As we discussed, in 2014 Microsoft decided to no longer participate in the American Legislative Exchange Council’s Communications and Technology Task Force, which had been our only previous involvement with ALEC. With this decision, we no longer contribute any dues to ALEC…we are no longer members of ALEC and do not provide the organization with financial support of any kind."
The social investment advisors questioned Microsoft’s membership in light of its support of renewable energy, which directly conflicts with ALEC’s attacks on the industry.
"Microsoft deserves praise for living up to its sustainability values by ending its membership in ALEC, an organization which has attacked clean energy and climate policies in nearly all 50 states. Microsoft has demonstrated a commitment in recent years to clean energy and climate action by introducing an internal carbon fee and purchasing large amounts of wind energy to power two of its data centers – all actions which run contrary to ALEC’s goal of killing the clean energy economy, says Gary Cook, Senior IT Policy Analyst for Greenpeace.
"Google, Facebook, eBay, Yahoo, Yelp and other technology companies that are still ALEC members would do well to learn from Microsoft’s leadership. Some of these companies have made great clean energy strides in their own operations, but have rationalized their ALEC membership with the excuse that it is a
crucial vehicle for their other political priorities. Microsoft’s departure from ALEC proves that argument specious: technology companies can advocate for their political agenda without loaning their credibility to organizations that undermine their environmental values at every turn," Cook says.
This year, Walden Asset Management introduced Google’s first shareholder resolution at its annual shareholder meeting, used to pressure companies to meet their environmental and social responsibilities. The resolution asks Google to quit its membership in ALEC and the US Chamber of Commerce and to disclose spending on lobbying and funding political groups.
After Microsoft dropped ALEC, 50 organizations wrote Google executives asking them to follow suit. They note that at ALEC’s recent conference, legislators were trained on how to block clean energy legislation. ALEC also wants an end to "net neutrality," which Google supports.
"The undersigned organizations have varying opinions on these issues, but we all know Google has been a leader in the fight to protect net neutrality and investing in clean energy alternatives. Yet Google has not heeded requests – even at the company’s shareholder meetings this year – to reevaluate your membership in ALEC despite the fact that ALEC’s agenda is severely out of step with your corporate culture," says the letter.
Over 90 corporations have dropped their membership since 2011, when ALEC was exposed for secretive efforts to develop state legislation that supports corporate member interests: "Stand Your Ground" bills, restrictive voter ID requirements, anti-union measures, and preventing action on climate change and the growth of the renewable energy industry, among others.
Among the corporations that have pulled support are Coca-Cola, General Motors, Walmart, General Electric, Bank of America, and Proctor & Gamble, Johnson & Johnson, Kraft, Intuit and Amazon.
Common Cause has filed a tax whistleblower complaint with the IRS against ALEC, charging the group with masquerading as a charity and violating the terms of its nonprofit status by underreporting its lobbying activity.
Read our article, ALEC Attacks Even Before EPA Acts.
Read the letter to Google:
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