Public Policy Engagement and Political Participation
Political and Policy Participation
As a biopharmaceutical company that develops treatment for serious diseases, we play an important role in public health. We believe it is important for our company to be a responsible participant in political and public policy debates around the world. Our engagement in the political arena helps ensure that patients have access to needed medications—leading to improved patient outcomes. Through public policy engagement, we provide a way for all our locations globally to offer Lilly’s perspective on the political environment in a manner that supports access to innovative medicines. We also look for ways to engage on issues specific to local business environments.
Through our policy research, development and stakeholder dialogue activities, Lilly focuses on several dynamic areas that are important to our company, our industry and the people we serve.
Our public policy efforts center on three key areas: innovation; health care delivery; and pricing and reimbursement. We disclose our lobbying activities in compliance with the Lobbying Disclosure Act. For additional information on Lilly’s positions on healthcare policies, please see Lilly’s public policy page.
Board Oversight
The Lilly Board of Directors exercises governance oversight of our political expenditures and lobbying activities to ensure that we fulfill our commitment to stewardship of corporate funds and risk minimization with respect to such activities, as well as other environmental, social and governance matters. The Directors and Corporate Governance Committee of the Board is responsible for identifying current and emerging social, environmental, political and governance trends and public policy issues that may affect the business operations, performance, or reputation of the company. In addition, the full Board receives regular updates at Board meetings from our Executive Vice President, Corporate Affairs and Communications, which include updates on public policy issues and the company’s political corporate activity, as needed. The full Board also receives semi-annual updates on political engagement, including information on the contributions made by LillyPAC and the company, as well as trade association memberships.
Recipients of Company's Political Contributions
Where permitted, Lilly may make lawful political contributions in the United States to political candidate committees, political parties, political action committees, ballot measure committees, associations and other political organizations operating under section 527 of the Internal Revenue Code. Lilly will only fund other non-candidate expenditures by exception (e.g., certain ballot initiatives) and those contributions are disclosed in our annual Report of Political Financial Support.
Lilly has not made “independent expenditures,” such as by paying for advertisements in support of or opposition to candidates running for public office and does not have plans to make such expenditures. Nor does Lilly anticipate making “independent expenditures” in support of or opposition to ballot measures. Were Lilly to make an “independent expenditure” in the future, it would disclose this spending on its Report on Political Financial Support.
Political Contributions to Candidates for Public Office
Our political contributions promote the interests of the company and the patients and customers we serve. They are made without regard to the partisan affiliation of the candidate or the private political preferences of our officers and directors.
LillyPAC and corporate contributions are made based on several criteria, including:
Voting record or announced positions on issues important to Lilly.
Demonstrated leadership on key committees of importance to our business.
Potential for legislative leadership.
Dedication to improving the relationship between business and government.
Representation of a state or district where Lilly has a facility or large concentration of employees.
Corporate Political Contributions
Corporate political contributions are made to state candidates and committees, where permissible. Lilly’s Vice President of Global Government Affairs reviews and approves all corporate political contributions to ensure these contributions are consistent with the company’s guidelines and in accordance with applicable laws. The company’s General Counsel and the Chief Financial Officer, or their designees, also approve all corporate political contributions before they are made.
Lilly has voluntarily disclosed its corporate contributions on an annual basis in the past but beginning in 2022 discloses them on a biannual basis. In 2022, Lilly provided corporate contributions to state candidates and committees totaling $248,850. For more information, please see our Reports of Political Financial Support below.
LillyPAC
Lilly’s Political Action Committee (LillyPAC) is funded solely by voluntary contributions from eligible employees and supports political candidates of all parties at the local, state and federal level who understand the policies that advance a positive environment for biopharmaceutical innovation. The LillyPAC governing board is comprised of 16 U.S.-based employees who represent business areas throughout the company. The LillyPAC governing board reviews all contributions made by LillyPAC twice annually. Lilly’s Vice President, U.S. Government Affairs manages LillyPAC operations, and a member of Lilly’s Executive Committee serves as an executive sponsor and board chair of LillyPAC to ensure compliance and alignment with company priorities.
LillyPAC voluntarily disclosed its contributions on an annual basis in the past but beginning in 2022 discloses them on a biannual basis. In 2022, LillyPAC contributions to local, state and federal candidates totaled $941,200. For more information, please see our Reports of Political Financial Support below.
Federal and State Lobbying Activities
Lilly conducts direct lobbying efforts at the federal, state, and local levels to educate policymakers on the specific implications that various legislation may have on the company, our community, and patients. Lilly’s Vice President of Global Government Affairs is responsible for the company’s lobbying activities.
When engaging in lobbying activities, we comply with the laws that govern such activities. Lilly employees must also comply with our global policies, core values and legal obligations, which are outlined in our written Code of Business Conduct, The Red Book.
Lilly complies with the Lobbying Disclosure Act and files quarterly reports that include information regarding our federal lobbying expenditures. These reports may be viewed on the U.S. Senate Lobbying Disclosure Act Database website. In all states where we operate, we comply with state registration and reporting requirements. Our state reporting may be viewed on each state’s lobbying disclosure website. Lilly voluntarily provides this chart for locating its disclosures on each state’s website.
In 2022, Lilly spent $6,806,850 on U.S. federal lobbying activities, which includes, but is not limited to, compensation and benefits for staff members, payment of external consultants, policy research funding and travel expenses.
Trade Association Memberships
Lilly maintains memberships in organizations that report lobbying activity to the U.S. federal government, including the Pharmaceutical Research and Manufacturers of America, the National Association of Manufacturers, the Biotechnology Innovation Organization, the U.S. Chamber of Commerce and the Business Roundtable. We support organizations that champion public policies that contribute to pharmaceutical innovation, healthy patients, and a healthy business climate.
Our membership in these organizations is evaluated annually by the company’s U.S. Government Affairs leaders based on these organizations’ expertise in healthcare policy and advocacy and support of key issues of importance to Lilly.
In addition to their positions on health care and business policy issues, we recognize that these organizations may engage in a broad range of other issues that extend beyond the scope of what is of primary importance to Lilly. If concerns arise about an organization’s activities or involvement, we convey our concerns to these groups. We believe there is value in making sure our positions on issues important to Lilly and our industry are communicated and understood within those organizations. Lilly's membership in these groups comes with the understanding that we may not always agree with the positions of the larger organization and/or other members.
We disclose memberships in organizations to which Lilly pays annual membership dues of $50,000 or more, and which lobby in the U.S. at the federal and state level, as well as the percentage of dues collected from member companies utilized by that organization for federal and state lobbying and political expenditures. If Lilly has a board seat in any of those organizations, the board seat is also disclosed and noted with an asterisk.
Advanced Medical Technology Association (2%)
BIOCOM California* (10%)
Biotechnology Innovation Organization* (35%)
Business Roundtable (60%)
Greater Indianapolis Chamber* (5%)
Indiana Chamber of Commerce* (9%)
National Association of Manufacturers* (20%)
Pharmaceutical Research and Manufacturers of America* (33%)
U.S. Chamber of Commerce (25%)