Why we engage.
Engagement in the political process is critical to
our success. Our future growth depends on forward-thinking legislation and regulation
that makes society safer and more energy efficient and improves public infrastructure.
For example, nearly 50% of our products are linked to energy efficiency. In
fact, if our existing technologies were widely adopted today, energy demand
in the U.S. could be reduced by 20-25%.
When formulating policies and drafting laws that improve safety, security,
energy efficiency and infrastructure, policymakers need to be fully informed
about the commercial availability of products and services that can deliver
real benefits and improvements. Politicians and regulators risk missing opportunities
to fully exploit technology or causing unintended consequences when making decisions
without the benefit of information from the commercial sector. Our lobbying
activities are designed to educate policymakers. We consistently advocate the
need for technologically neutral solutions that allow robust competition in
the private sector to deliver the intended policy results.
Below is a list of some of our top legislative and regulatory priorities:
- Policies and regulations that encourage the use of public utilities
to deploy demand response technologies and smart grids to reduce electricity
- Automotive emission reduction policies that facilitate the use of more
fuel efficient cars and reduce the use of global warming and ozone depleting
- Investment in the air traffic control system to make flying both safer
and more energy efficient;
- Commercial and residential building, permitting and construction codes
that facilitate safer, more energy efficient construction and renovation;
- High-priority Department of Defense programs that support our national
- Tax, trade and other policies to ensure that our nation can compete
on a level playing field around the globe.
How we engage.
We have developed a strong team of government relations
professionals based in Washington, DC that drive our lobbying programs and initiatives.
Our government relations organization is led by a Senior Vice President, Global
Government Relations who reports directly to the Company's Senior Vice President
and General Counsel (General Counsel). Members of the government relations organization
work from a global network of offices.
We strive to always engage responsibly in the political process and to ensure
that our participation is fully consistent with all applicable laws and regulations,
our principles of good governance, and our high standards of ethical conduct.
Management and Board Oversight of Lobbying Activities
The law department
oversees our lobbying activities. The Senior Vice President, Global Government
Relations reports to the General Counsel and also works closely with the Vice
President, Global Compliance whose organization ensures compliance with our
political spending policy. The General Counsel, Senior Vice President, Global
Government Relations and Vice President, Global Compliance meet regularly with
the Chairman and Chief Executive Officer and his leadership team about legislative,
regulatory and political developments.
With respect to Board of Directors oversight, our public policy efforts,
including all lobbying activities, political contributions and payments to trade
associations and other tax-exempt organizations, is the responsibility of the
Corporate Governance and Responsibility Committee (CGRC), which consists entirely
of independent, non-employee directors. Each year the CGRC receives an annual
report on the Company's policies and practices regarding political contributions.
The CGRC's oversight of our political activities ensures compliance with applicable
law and alignment with our policies and our Code of Business Conduct. In addition,
each year the Senior Vice President, Global Government Relations reports to
the full Board of Directors on our global lobbying and government relations
We have not made any
political contributions using corporate funds since at least 2009 and have no
intention of making such political contributions in the near future. Even before
2009, any such contributions were extremely rare and for de minimis
of less than $5,000. Were we to use corporate funds for political contributions,
such contributions would be made without regard to the personal partisan preferences
of Company officers and executives.
We use the term "political contributions" broadly to mean:
- Political parties;
- "527 groups" or "527 organizations" such as governors associations and
super PACs; and
- Grass root campaigns intended to directly or indirectly influence the
outcome of any ballot measures.
With respect to tax-exempt organizations, such as 501(c)(4)s, where funds
may be used for political purposes, we have made only one contribution since
2009. In December 2012, as disclosed in our publicly available filings required
under the Lobbying Disclosure Act, we contributed $1 million to the Fix the
Debt Coalition, a non-partisan 501(c)(4) organization which seeks to educate
and mobilize Americans on the need for a comprehensive plan to fix the United
States' long-term debt and deficits but have made no further contributions.
The decision to contribute funds to this organization was discussed with the
Board of Directors.
Any use of corporate funds for political expenditures or ballot measures
would require the prior approval of the Company's General Counsel. These policies
on political contributions are imbedded in our
Corporate Governance Guidelines and
Code of Business Conduct.
We are a member of a number of trade associations
and other tax-exempt or similar organizations that may engage in political activity.
The trade associations to which we belong represent a broad range of perspectives
on public policy issues, not all of which we support. Our membership in these
organizations is intended to accomplish a wide of range of objectives:
- Support our commercial growth initiatives where we believe engaging
in coalitions with other industry participants is likely to enable growth
of end markets;
- Promote development of our internal technical and regulatory expertise
as well as enable us to share with other companies our technical and regulatory
- Assist in political advocacy and outreach, particularly related to public
education efforts regarding major issues common to our industries.
Membership in trade associations requires that we pay regular dues. Some
trade associations utilize a portion of membership dues for non-deductible state
and federal lobbying and political expenditures.
Political Action Committee.
As noted above, we have not made any political
contributions using corporate funds since at least 2009 and have no intention
of making such political contributions in the near future. Any and all contributions
we make in support of federal and state political candidates is through the
non-partisan Honeywell International Political Action Committee (HIPAC), which
is funded exclusively through voluntary contributions from eligible U.S.-based
employees, which are not reimbursed by Honeywell. Decisions regarding use of
HIPAC funds are made by a HIPAC Executive Committee, consisting of senior managers
representing Corporate and each of the Company's operating segments, which meets
quarterly to discuss how HIPAC's political disbursements can promote the interests
of the Company and the economic growth of the U.S. Political disbursements made
through HIPAC are made without regard to the personal partisan preferences of
Company officers and executives. HIPAC spending decisions are made solely to
promote the interests of Honeywell and are based on the following criteria:
Honeywell's employee, supplier and/or customer base in legislators' districts/states;
support for Honeywell's initiatives; leadership positions in the U.S. Congress
or state legislatures; and, leadership positions on legislative committees that
are relevant to Honeywell's businesses. Political contributions are never made
with regard for the private political preferences of our executives.
The Company conducts periodic audits of HIPAC practices and procedures, including
the retention of outside auditors.
How to get more information.
Federal disclosures regarding our lobbying
activities are publicly available. Our public disclosure includes, among other
things, our aggregate annual spending on trade association membership dues spent
on lobbying or political expenditures as well as HIPAC contributions to political
candidates. Starting in 2011, information regarding these topics has been disclosed
on this website, and the Company will maintain an archive of this information,
as well as information subsequently made available on this website. Disclosures
from prior periods can be accessed via the links below.
- With respect to federal lobbying activity, we maintain and file Lobbying
Disclosure Act Registration and Reports (Form LD-2) with the Secretary of
the U.S. Senate and the Clerk of the U.S. House of Representatives, which
reflect the particular bills and issues on which individual lobbyists had
activity, as well as the total lobbying expenses incurred during each calendar
Click here for Forms LD-2 for 2014 and
here for 2015, each of which includes the aggregate amount of the company's
spending on lobbying by calendar quarter, including trade association memberships.
Reports for prior periods may be found at
- Honeywell and its registered federal lobbyists must also file semi-annual
reports (Form LD-203) providing, among other things, HIPAC disbursements
and personal, direct contributions to federal candidates.
Click here for Forms LD-203 for 2014,
here for 2015. Reports for prior periods may be found at
- Monthly reports filed with the Federal Election Commission (FEC) for
prior periods can be accessed on the FEC's website
www.fec.gov. [To access an archive of Honeywell's
FEC reports, go to www.fec.gov > select
"Campaign Finance Disclosure Portal" > select "Candidate and Committee Viewer"
> enter "Honeywell International Political Action Committee" in the Search
box > select "Filings" from the Default Tab options and click "Get Listing"
> click the ID number (C00096156) link to view monthly filings.]