Public Policy Engagement
Xerox has a longstanding tradition of civic engagement. Our involvement in the political process and global public policy debate is a natural extension of our core values. We work with governments, others in our industry and the broader business community to advocate for public policies that support our business goals.
On issues for which our experience and knowledge add an important perspective to public debate, we seek to educate policymakers, both directly and indirectly, through various coalitions and trade associations. Through the Office of Global Government Affairs, we have interactions with governments and governmental organizations throughout the U.S. (at federal, state and local levels) and around the world. We engage on issues that range from legal, trade, tax policy and financial activities to regulatory compliance, intellectual property and government procurement.
We support open markets and free trade. International trade is a powerful engine of global economic development that fosters job growth, improved living conditions and opportunities around the world. We support government-to-government negotiations aimed at liberalizing trading rules and opening markets, both on a bilateral and multinational basis. More open markets are critical for our technology and service solutions where we face barriers worldwide. We believe that all participants must be responsible citizens of the countries where they do business.
As a global enterprise, we comply with the tax laws and regulations in all 160-plus countries where we operate. For more detail on the taxes we pay, please see our 2016 Annual Report.
At the same time, we work in support of U.S. corporate tax reform. The U.S. has the highest tax rates among large, industrialized nations. Corporate tax reform is needed if U.S. companies are to be fully competitive in overseas markets where 95 percent of the world’s population lives.
Xerox has had a longstanding tradition of supporting efforts aimed at ensuring American students graduating from high school and college have the skills to compete. We are particularly passionate about programs that further American students’ access to science, technology, engineering, and math (STEM) curricula. These efforts help Xerox recruit and retain a skilled workforce and allow us to compete globally. We have worked with Congress and several Administrations to reform higher education programs, vocational education funding and K─12 standards.
As a participant in the Coalition Against Counterfeiting and Piracy, we play an active role in combating theft of intellectual property by counterfeiters who manufacture knockoff products. We also are strongly supportive of changes in the law that would reduce the impact of frivolous intellectual property litigation that imposes unnecessary costs on innovative companies.
Our Environment, Health, Safety and Sustainability governance policy, adopted in 1991, forms the foundation of our environmental leadership program.
We promote policy positions that make Information Technology (IT) more effective in supporting state and local government missions, improve government technology acquisition processes, maximize the positive financial impact of IT investments and create better outcomes for Americans served by state and local government agencies and programs. Our Office of Global Government Affairs has an established network of state and local government consultants whose responsibilities include monitoring legislation and policies that would impact our various government lines of business. Examples of our government business interests include business process outsourcing, regulation of credit card fees, eligibility and health information exchanges, emergency management services, work zone speed enforcement and electronic toll collections.
We believe policymakers should foster a legal and economic framework that encourages employers to maintain and increase the number of workers who have access to employer-provided retirement security. We take our commitment to our employees, both current and retired, very seriously and work with the U.S. Congress and the Administration to formulate policies that allow us to meet this pledge.
As an active player in healthcare, we promote policies that allow for sustainable, high-quality systems that are more accessible, less costly and more patient-centered. We support every citizen having access to quality, affordable health coverage. However, too many obstacles — regulatory mandates, inaccessible data, inefficient processes, incomprehensible billing and ever-rising costs — threaten to undermine our ability to provide healthcare effectively. We seek to use our healthcare expertise, our heritage of innovation and our influence to enhance the entire healthcare ecosystem. We work with patients, providers, payers, employers and governments at all levels to improve people’s lives through better, more accessible and more affordable healthcare.
Professional Organizations and Associations
Trade associations around the world play an important role in assisting our company with business development opportunities and citizenship activities, as well as in helping us meet certain public policy objectives. We are a member of a wide array of trade associations. Any trade association dues, or portions thereof, that are not deductible for tax purposes are reported in our lobbying disclosure reports. Our senior managers play a leadership role in various organizations, such as the Business Roundtable and the U.S. Chamber of Commerce. These organizations develop and promote public policies that are considered important to our public policy interests and operations.
While we prefer to make political expenditures directly rather than through professional organizations and associations, Xerox, like all major corporations, is a member of various 501(c) organizations that may engage in political activities. While we may not necessarily agree with every position taken by each organization to which we contribute, we determine that the intended use is consistent with our mission and core values before making a donation to any such group. We inquire and make a reasonable effort to obtain from those associations the portion of the dues or payments that are used for lobbying expenditures or political contributions. To the extent it is reported to us, we disclose the non-deductible portion of our contributions annually.
The following lists U.S.-based trade associations in which 2016 dues and expenditures paid by Xerox total $25,000 or more. The portion of our contributions used for lobbying expenditures or political contributions is also indicated:
|Trade Association||2016 Payments||Amount ($) of Total Payment Used for Non-Deductible Expenses Used by the Association|
|The ERISA Industry Committee||$25,000||$8,750|
|IT Alliance for Public Sector||$50,000||$8,750|
|National Association of Manufacturers||$40,000||$8,800|
|Technology CEO Council||$150,000||$150,000|
|U.S. Chamber of Commerce||$140,000||$42,000|
|Tax Reform Coalition||$50,000||$50,000|
|American Benefits Council||$28,000||$9,240|
|The Rochester Business Alliance, Inc.||$78,868||$7,887|
- American Benefits Council: The American Benefits Council advocates for employers, connecting public policy and private-sector solutions to share employee benefits for the evolving global workforce.
- Business Roundtable: The Business Roundtable has been actively engaged in shaping the debate on corporate tax reform and is supportive of Xerox’s goals for reform that will enhance the ability of U.S. companies to compete internationally. We participate in the policy formation and advocacy functions for the Business Roundtable’s tax reform efforts. The Roundtable has also focused heavily on developments with the most burdensome of the EPA’s proposed regulations covering areas such as ozone, carbon emissions and boiler controls, proposing less costly methods of achieving the EPA’s overall environmental goals.
- The ERISA Industry Committee (ERIC): A trade association, ERIC represents the employee benefits and compensation interests of America’s major employers.
- IT Alliance for Public Sector (ITAPS): ITAPS advocates for improved procurement policies and practices, while identifying business development opportunities and sharing market intelligence with our industry participants on the federal, state, and local levels of government.
- National Association of Manufacturers (NAM): NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the U.S. NAM is on the front lines of a wide range of policy battles — including immigration reform and labor relations, energy and the environment, and trade policy and taxes — working on behalf of manufacturers in America to advance policies that help manufacturers do what they do best: create economic strength and jobs.
- Tax Reform Coalition: Coalition of large corporations advocating for comprehensive corporate and international tax reform.
- Technology CEO Council (TCC): The TCC is the information technology industry’s leading public policy advocacy organization comprised exclusively of chief executive officers from America’s top IT companies.
- U.S. Chamber of Commerce: The U.S. Chamber of Commerce is the world’s largest business organization, representing the interests of more than 3 million businesses of all sizes, sectors and regions. The Chamber’s membership ranges from independently owned small businesses and local chambers to leading industry associations and large corporations. The Chamber advocates for pro-business policies that create jobs and grow the economy. Key issues range from smart tax policy and regulatory relief to legal reform and trade promotion.
Code of Conduct Training
The Xerox Code of Business Conduct contains explicit information on our policies governing contact with elected and appointed government officials and agencies, as well as lobbying and political contributions. All Xerox employees are required to participate in annual training on the Code of Business Conduct and must certify adherence to the Code upon the conclusion of the course.
Employee Personal Political Contributions
While we encourage our people to participate in community and political activities, we do not endorse any organization or activity in which employees choose to participate; and we do not discriminate in favor of or against employees based on the organizations they choose to support. Employees are not reimbursed directly or through increases in compensation for their personal political contributions and expenses.
Xerox Contributions to 527s in 2016
The following 527 organizations received support from Xerox in 2015. The name derives from Section 527 of the Internal Revenue Code, under which these organizations are tax-exempt. These organizations have a purely political focus, rather than one supporting an issue or cause. Xerox contributions to the following 527 organizations are made with corporate — rather than Xerox Corporation Political Action Committee (XPAC) — funds:
- Democratic Governors Association
- Republican Governors Association
Xerox Corporate Political Contributions
We have a long-standing policy that nothing of value may be given, paid, promised or offered — directly or indirectly — from corporate treasury funds for any of the following: (1) political party, committee and/or candidate for any federal, state or local government office anywhere around the world; (2) independent expenditure or ballot measure committees; (3) electioneering communications; or (4) candidates for judicial office.
We have an established policy that does not permit any in-kind political contributions. The only authorized method to make political contributions on behalf of Xerox is through the Xerox Corporation Political Action Committee (XPAC).
Xerox Corporation Political Action Committee (XPAC)
XPAC is supported entirely by voluntary contributions from eligible Xerox employees, and all contributions go directly to candidate campaigns for political office. XPAC is nonpartisan and actively supports candidates and helps elect policymakers whose positions are consistent with our business values and strategies. XPAC contributions promote the interests of the company and are made without regard for the private political preferences of company officers and executives. We strictly prohibit the use of XPAC contributions to motivate or reward any official act.
Every proposed political contribution undergoes an internal review process to evaluate whether it is legally permissible and in the best interests of our company and our shareholders. In many cases, we may not agree with every position taken by a candidate whom we support.
The XPAC guidelines used as a basis for supporting candidates and elected officials include:
- The integrity and character of the candidate
- The candidate’s position on significant policy issues of importance to our company
- The candidate’s overall support for our company and industry
- The candidate’s overall support for the free enterprise system and U.S. competitiveness
- A demonstrated willingness on the part of the candidate to work with our company and industry to achieve responsible public policy solutions
- The candidate’s representation of a state or district in which our company has significant employees or facilities
- Whether the candidate holds a leadership position within their political party
- The candidate’s electability
- Permissibility under applicable law
In addition, XPAC focuses on contributions that go directly to candidates for office. Special exceptions are required for:
- Out-of-election-cycle contributions
- Contributions to leadership PACs
- Contributions to trade association PACs
- Contributions to ballot measure committees
- Contributions to political parties
XPAC does not permit contributions for:
- Independent expenditure committees
- Electioneering communications
- Candidates for judicial office
- Presidential candidates at any stage in the campaign process
XPAC discloses all contributions made and received on reports filed with the Federal Election Commission and the various state and local campaign finance commissions, as required by law. In accordance with XPAC’s Articles of Organization, an audit of the accounting books of the XPAC are performed at least once during every two-year election cycle to assure compliance with the Federal Election Campaign Act of 1971, as amended, and its regulations and all other applicable laws.
We use outside legal experts to provide periodic oversight of the company’s political activities.
2016 XPAC Cycle Contributions
|Federal Candidates (Senate)|
|Sen. Johnny Isakson (R)||GA||$5,000|
|Sen. Todd Young (R)||IN||$1,000|
|Sen. John Kennedy (R)||LA||$5,000|
|Sen. Maggie Hassan (D)||NH||$5,000|
|Sen. Martin Heinrich (D)||NM||$1,000|
|Sen. Orrin Hatch (R)||UT||$1,000|
|Total U.S. Senate||$18,000|
Federal Candidates (House)
|Rep. Ami Bera (D)||CA||7||$3,500|
|Rep. Jim Himes (D)||CT||4||$5,000|
|Rep. Brett Guthrie (R)||KY||2||$1,000|
|Rep. Hal Rogers (R)||KY||4||$4,000|
|Paul Kline (R)||MN||2||$1,000|
|Rep. Tom Reed (R)||NY||23||$5,000|
|Rep. Louise Slaughter (D)||NY||25||$5,000|
|John Boehner (R)||OH||8||$2,500|
|Rep. James Renacci (R)||OH||16||$2,500|
|Rep. Patrick Tiberi (R)||OH||12||$5,000|
|Rep. Steven Russell (R)||OK||5||$1,000|
|Rep. Mia Love (R)||UT||4||$1,000|
|Rep. Suzan Kay DelBene (D)||WA||1||$1,000|
|Total U.S. House||$37,500|
|Total Federal Candidates||$55,500|
Federal Party Committees
|Connecticut Democratic State Central Committee - Federal Account||CT||$6,000|
|Mississippi Republican Party||MS||$5,000|
|Montana Democratic Party - Federal Account||MT||$2,500|
|Total Federal Party Committees||$13,500|
|Candidate Name||State||Office Sought||Amount|
|Assm. Rob Bonta (D)||CA||State House, District 18||$1,500|
|Sen. Jerry Hill (D)||CA||State Senate, District 13||$1,500|
|Gov. John Carney, Jr. (D)||DE||Governor||$1,000|
|Rep. Larry Mitchell, Jr. (D)||DE||State Senate, District 13||$600|
|Patricia Blevins (D)||DE||State Senate, District 7||$600|
|Gov. Eric Holcomb (R)||IN||Governor||$5,000|
|V.P. Michael Pence (R)||IN||Governor||$2,000|
|Andy Beshear (D)||KY||Attorney General||$2,000|
|Gov. Matthew Bevin (R)||KY||Governor||$5,000|
|Jack Conway (D)||KY||Governor||$1,000|
|Allison Ball (R)||KY||Treasurer||$500|
|Gov. Larry Hogan, Jr. (R)||MD||Governor||$2,000|
|Gov. Phil Bryant (R)||MS||Governor||$2,500|
|Hon. Tate Reeves (R)||MS||Lieutenant Governor||$1,000|
|Rep. Philip Gunn (R)||MS||State House, District 56||$1,000|
|Gov. Steve Bullock (D)||MT||Governor||$650|
|Gov. Doug Burgum (R)||ND||Governor||$2,500|
|Hon. Chris Pappas (D)||NH||Executive Council||$1,000|
|Hon. Joseph Kenney (R)||NH||Executive Council||$1,000|
|Colin Van Ostern (D)||NH||Governor||$2,500|
|Gov. Chris Sununu (R)||NH||Governor||$2,500|
|Assm. Joseph Morelle (D)||NY||State House, District 132||$1,000|
|Gov. Kate Brown (D)||OR||Governor||$1,000|
|Hon. Joseph Torsella (D)||PA||Treasurer||$500|
|Rep. Tony Dale (R)||TX||State House, District 136||$500|
|Rep. Gary Elkins (R)||TX||State House, District 135||$500|
|Sen. Richard Saslaw (D)||VA||State Senate, District 35||$5,000|
|Gov. Jay Inslee (D)||WA||Governor||$1,000|
|Hon. John Perdue (D)||WV||Treasurer||$1,000|
|Total State Candidates||$47,850|
|Committee Name||State||Committee Type||Amount|
|House Republican Campaign Committee||IN||Caucus Committee||$2,000|
|NYS Democratic Assembly Campaign Committee||NY||Party Committee||$1,000|
|Total State Committees||$7,000|
|Candidate Name||State||Office Sought||Amount|
|Robert White (D)||DC||City Council||$500|
|Brandon Todd (D)||DC||City Council||$500|
|Jack Evans (D)||DC||City Council||$500|
|Kathryn Barger (D)||CA||LA County Supervisor||$250|
|Janice Hahn (D)||CA||LA County Supervisor||$250|
|Darrell S. Steinberg (D)||CA||Mayor, Sacramento||$1,000|
|James Kenney (D)||PA||Mayor, Philadelphia||$2,500|
|Kirk Caldwell (D)||HI||Mayor, Honolulu||$1,000|
|Chuck Brewer (R)||IN||Mayor, Indianapolis||$500|
|Total Local Candidates||$7,000|
The Corporate Governance Committee of the Xerox Board of Directors is responsible for overseeing the company’s political and charitable contributions and receives annual reports on XPAC activities.
The Vice President, Global Government Affairs is responsible for the management of Xerox’s participation in the political process. This position reports directly to our Executive Vice President, General Counsel and Corporate Secretary, who reports to the company Chairman and Chief Executive Officer.
XPAC is led by a Board of Trustees, which includes a cross-section of managers from Xerox who represent their unique business unit and geographic areas. A Contributions Committee appointed by the XPAC Chairman and consisting of five members is responsible for selecting by majority vote the candidates to receive a contribution from XPAC. Our General Counsel, the Vice President of Global Government Affairs and the Manager, Global Government Affairs oversee all spending.
|The Xerox Board of Trustees hold the following positions within Xerox:
(*Denotes trustee serves on the XPAC Contributions Committee)
|Executive Vice President and Chief Commercial Officer*|
|Executive Vice President and General Counsel and Corporate Secretary*|
|Manager, Global Government Affairs|
|Senior Vice President, U.S. Large Enterprise Operations|
|SVP, Acquisitions, Corporate Service & Marketing at Global Imaging Systems|
|Vice President of Communications|
|Vice President, Vice President, Worldwide Taxes|
|Vice President, Global Government Affairs and Corporate Philanthropy*|
|Vice President, Public Sector|