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GSK Will Halt Political Gifts: Corporate Donations Will Stop. Lobbying and Other Efforts to Sway Politics Will Go On
Tuesday, December 23, 2008 5:59 AM


(Source: The News & Observer)trackingBy Alan M. Wolf, The News & Observer, Raleigh, N.C.

Dec. 23--GlaxoSmithKline announced Monday that it will stop making political contributions as a corporation, a move designed to reduce appearances that the drug maker buys influence.

Although the step drew some praise from advocates who support reform of political financing, the effect will be limited.

GSK gave $585,425 to candidates this year, mostly in about 20 states where direct contributions are legal. Such giving is illegal in North Carolina, and federal law also prohibits corporations from donating directly to candidates.

"If this is the company's way of saying they're not interested in getting special access and trying to influence [lawmakers'] thinking through money, that's worth applauding," said Massie Ritsch, communications director for the Center for Responsive Politics in Washington. "But on a practical basis, this won't make a whole lot of difference."

For starters, GSK will continue other efforts it uses to influence politicians, including lobbying. The company spent $8.2 million on lobbying last year, according to the Center for Responsive Politics.

And GSK will still support a Political Action Committee run by its U.S. workers. GSK employs more than 5,000 at its U.S. headquarters in Research Triangle Park and other sites in the Triangle.

That PAC gave more than $1.5 million during the 2007-2008 election cycle, according to data from the Federal Election Commission. In North Carolina, the PAC gave about $40,000 to state candidates and political campaigns, according to filings with the State Board of Elections.

Also, GSK executives and employees can continue to contribute as individuals at the state and federal levels. Robert Ingram, GSK's vice chairman of pharmaceuticals, for example, is a prolific political donor. He recently contributed money to Republican U.S. Senate candidate Elizabeth Dole, the National Republican Senatorial Committee, the campaign of state Sen. Marc Basnight, a Democrat from Manteo, and others.

GSK's plan to stop tapping its own treasury for politics comes as the company is cutting other costs, and jobs. GSK eliminated 160 jobs at its Zebulon manufacturing plant this year and announced plans to cut 350 researchers in RTP and Philadelphia. The company is under pressure as generic versions hurt sales of its medicines and the slumping economy erodes health-care spending.

The decision also comes as health-care reform is likely to take center stage in Washington next year -- under a new Congress and president.




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