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2014 Report of Political Financial Support

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2014 Report of Political Financial Support 2014 2014 Lilly Political Contributions As a biopharmaceutical company that treats serious diseases, Lilly plays an important role in public health and its related policy debates. It is important that our company shapes global public policy debates on issues specific to the people we serve and to our other key stakeholders including shareholders and employees. Our engagement in the political arena helps address the most pressing issues related to ensuring that patients have access to needed medications—leading to improved patient outcomes. Through public policy engagement, we provide a way for all of our locations globally to shape the public policy environment in a manner that supports access to innovative medicines. We engage on issues specific to local business environments (corporate tax, for example). Based on our company’s strategy and the most recent trends in the policy environment, our company has decided to focus on three key areas: innovation, health care delivery, and pricing and reimbursement. More detailed information on key issues can be found in our 2014 Corporate Responsibility Update. Through our policy research, development, and stakeholder dialogue activities, Lilly develops positions and advocates on these issues. Government actions such as price controls, pharmaceutical manufacturer rebates, and access to Lilly medicines affect our ability to invest in innovation. Lilly has a comprehen- sive government relations operation to have a voice in the public policymaking process at the federal, state, and local levels. Lilly is committed to participating in the political process as a responsible corporate citizen to help inform the U.S. debate over health care and pharmaceutical innovation. As a company that operates in a highly competitive and regulated industry, Lilly must participate in the political process to fulfill its fiduciary responsibility to its shareholders, and its overall responsibilities to its customers and its employees. When engaging in lobbying efforts or making political contributions, we comply with the laws that govern such activities. All financial support and lobbying activity are over- seen at the Board level by the Public Policy and Compliance Committee (PPCC), which is composed entirely of outside directors. The PPCC members receive a copy of the Lilly Report of Political Financial Support annually and a detailed briefing on company politi- cal engagement every two years in alignment with the U.S. election cycle. We lobby and make political contributions only where allowed under law. All decisions are made without regard for the private personal preferences of the company’s officers and executives. All of our employees must also comply with the policies in The Red Book– Code of Business Conduct, which includes Lilly’s core values, legal obligations, and global policies, including our “Global Policy on Political Financial Support and Involvement.” All individuals who recommend political contributions in the U.S. are trained on our policies on corporate political contributions and LillyPAC contributions. 2 2014 Lilly Political Contributions Elected officials, no matter what level, have an impact on public policy issues affecting Lilly. In the U.S., we are committed to backing candidates of any party who support pub- lic policies that contribute to the health needs of the patient, pharmaceutical innovation, and the interests of our company. In addition to disclosing support for individual candi- dates and independent expenditures, Lilly will disclose any company contributions to the political process via 527 organizations (e.g., political action committees for individuals or parties). Lilly will only fund other non-candidate expenditures by exception (e.g., certain ballot initiatives), and those contributions will be disclosed. The General Counsel and the Chief Financial Officer, or their designees, must approve all corporate political contribu- tions before they are made. Our annual Report of Political Financial Support provides details of our company’s inde- pendent-political contributions; the activities of our political action committee, LillyPAC, which is funded solely by eligible employee contributions; and the governance processes for both. The LillyPAC Governing Board (the board) oversees all contributions made by LillyPAC. The board is composed of 13 U.S.-based employees who represent components throughout the company. LillyPAC meets all disclosure requirements and is audited annually by Ernst and Young. For more information, view the reports for the current year and for four years of history: • 2014 Lilly Report of Political Financial Support (You are now viewing this report) • 2013 Lilly Report of Political Financial Support (View Now) • 2012 Lilly Report of Political Financial Support (View Now) • 2011 Lilly Report of Political Financial Support (View Now) • 2010 Lilly Report of Political Financial Support (View Now) The quarterly reports in the current year for LillyPAC and corporate political contributions can be found here. (View Now) Lilly invests in 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. Information on our federal lobbying activities is reported to the U.S. Congress in accordance with the Lobbying Disclosure Act of 1995. 3 2014 Lilly Political Contributions Information on our state lobbying activities is reported as required in those states where we engage in lobbying activities. For more information, view the following reports: • Q4 2014 U.S. Congress Lobbying Disclosure (View Now) • Q3 2014 U.S. Congress Lobbying Disclosure (View Now) • Q2 2014 U.S. Congress Lobbying Disclosure (View Now) • Q1 2014 U.S. Congress Lobbying Disclosure (View Now) • 2014 State Lobbying Disclosure (View Now) In addition to direct political contributions, Lilly maintains memberships in certain 501(c)4s—trade associations that report lobbying activity to the U.S. government. We support organizations that champion public policies that contribute to pharmaceutical innovation, healthy patients, and a healthy business climate. The Lilly Report of Political Financial Support also notes our memberships in trade associations that report lobbying activity to the U.S. government and to which we contribute $50,000 per year or more. Organizations where Lilly has a board seat are also noted. American Feed Industry Association (board seat), Animal Health Institute (board seat), Biotechnology Industry Organization (board seat), Business Roundtable, Greater India- napolis Chamber of Commerce (board seat), Healthcare Leadership Council (board seat), Indiana Chamber of Commerce (board seat), National Association of Manufacturers (board seat), PhRMA (board seat), and U.S. Chamber of Commerce. 4 Lilly Corporate Contributions 2014 2014 Lilly Political Contributions Candidate Organization / Committee State Party Office Amount Bentley, Robert Dr. Robert Bentley for Governor AL R Governor $12,500 Alabama 2014 AL R $5,500 Alabama Republican Party - Non-Federal Account AL R State Party $2,500 Alabama Republican Party - Non-Federal Account AL R State Party $2,500 Alabama Republican Party - Non-Federal Account AL R State Party $1,000 Alabama Republican Party - Non-Federal Account AL R State Party $7,850 STORM PAC AL R $1,000 Baltz, Scott Baltz for House AR D State House $250 Burris, John John Burris for Senate AR R State Senate $350 Eaves, Les Les Eaves for House AR R State House $250 Flippo, Scott Scott Flippo for Senate AR R State Senate $500 Hutchinson, Asa Asa Hutchinson for Governor AR R Governor $500 Kizzia, David Kizzia for House AR D State House $250 Lemons, Tim Tim Lemons for State Representative AR R State House $200 McLean, James McLean for House AR D State Senate $350 Smith, Fred Fred Smith Campaign AR G State House $250 Tucker, Clarke Clarke Tucker for House AR D State House $250 Alliance for California’s Tomorrow CA I $15,000 Asian American Small Business PAC CA $7,500 Independent Voter PAC CA $15,000 Moreno, Dominick DOMPAC CO D $500 Angela Williams Leadership Fund CO D $500 Colorado Republican Leadership Fund CO R $500 Mainstream Colorado CO D $2,500 Pabon Leadership Fund CO D $550 Peak Leadership Fund CO R $550 The Steady Hand Fund CO D $500 Democrat Governors’ Association DC D $7,500 Republican Governors’ Association DC R $2,500 Republican Governors’ Association DC R $10,000 Ahern, Larry Committee to Elect Larry Ahern FL R State House $500 Artillers, Frank Committee to Elect Frank Artillers FL R State House $500 Bileca, Michael Committee to Elect Michael Bileca FL R State House $500 Brandes, Jeff Committee to Elect Jeff Brandes FL R State Senate $500 Brodeur, Jason Committee to Elect Jason Brodeur FL R State House $500 Brosche, Anna Anna Brosche for Jacksonville City Council At-Large FL R City Council $500 Group 1 Crisafulli, Steve Committee to Elect Steve Crisafulli FL R State House $500 Cummings, W. Travis Campaign to Re-Elect W. Travis Cummings FL R State House $500 Diaz, Jose Felix Committee to Elect Jose Felix Diaz FL R State House $500 5 Lilly Corporate Contributions 2014 2014 Lilly Political Contributions Candidate Organization / Committee State Party Office Amount Diaz, Jr., Manny Committee to Elect Manny Diaz, Jr. FL R State House $500 Eisnaugle, Eric Eric Eisnaugle House Campaign FL R State House $500 Fant, Jay Jay Fant Campaign FL R State House $500 Fresen, Erik Committee to Elect Erik Fresen FL R State House $500 Hager, Bill Committee
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