Mastercard agrees to independent marketing policy after facing backlash over participation in a controversial alliance that critics say targeted conservative media outlets.
At a Glance
- Mastercard has pledged to ensure third-party views won’t influence its marketing decisions following investor pressure
- The company’s involvement with the Global Alliance for Responsible Media (GARM) drew criticism for alleged bias against conservative platforms
- Alliance Defending Freedom and Inspire Investing withdrew their shareholder resolution after Mastercard committed to policy changes
- GARM, which disbanded in August 2024, was accused of leveraging advertising dollars to pressure media outlets
- Mastercard’s new policy is viewed as a victory for free speech advocates concerned about corporate censorship
Corporate Policy Shift Under Pressure
Mastercard has agreed to implement significant changes to its marketing policies following mounting pressure from religious freedom advocates and concerned shareholders. The financial services giant will now ensure that third-party organizations do not influence its marketing and branding decisions, addressing concerns about corporate censorship. This policy adjustment came after investors, represented by the Alliance Defending Freedom (ADF), raised alarms about Mastercard’s affiliation with the Global Alliance for Responsible Media (GARM), an organization that faced criticism for allegedly targeting conservative media outlets.
“They used their ad buying power … to suppress conservative and religious content online.” said Jeremy Tedesco.
The decision represents a significant victory for advocates of free speech and religious freedom in corporate America. GARM, which officially disbanded in August 2024, had positioned itself as an organization promoting “responsible” media partnerships for advertisers. Critics, however, argued that the alliance used its considerable financial leverage to pressure media platforms into restricting content that didn’t align with certain ideological perspectives, particularly content from conservative or religious sources.
Shareholder Resolution and Company Response
The controversy came to a head when Inspire Investing and the Alliance Defending Freedom filed a shareholder resolution challenging Mastercard’s involvement with GARM. Rather than face a potentially divisive shareholder vote, Mastercard opted to address the concerns directly by committing to a new policy that affirms its independence in marketing decisions. As a result of this commitment, the shareholders withdrew their resolution, viewing the company’s response as a positive step toward protecting free expression.
Prior to this policy shift, Mastercard’s Chief Marketing and Communications Officer, Raja Rajamannar, had been a vocal supporter of GARM’s initiatives. The organization had created advertising guidelines that many viewed as subjective and potentially biased against specific viewpoints. Under the new policy, Mastercard will explicitly clarify that its marketing and branding decisions will be made independently, without undue influence from external organizations that might have their own ideological agendas.
Broader Concerns About Financial Censorship
This policy change at Mastercard emerges against a backdrop of wider concerns about the role of financial institutions in content regulation. In 2021, Mastercard implemented controversial policies for adult content websites that use its payment services, requiring pre-approval of content, prohibiting certain search terms, and mandating the maintenance of age and identity verification records. These measures have faced criticism from civil liberties groups for potentially restricting constitutionally protected speech.
“MasterCard, their business purpose is to make sure that people can transact funds. And that’s it. And that’s what they should be doing.” said Jeremy Tedesco.
The Alliance Defending Freedom has been particularly active in challenging corporate policies that may affect free speech. According to reports, the organization has filed numerous shareholder resolutions with major companies, resulting in policy changes that better protect diverse viewpoints. Their success with Mastercard demonstrates the growing influence of shareholder activism in shaping corporate policies related to free expression and viewpoint diversity.
Implications for Corporate America
Mastercard’s decision signals a potential shift in how major corporations approach content moderation and advertising partnerships. As companies face increasing pressure from all sides of the political spectrum regarding the content they associate with, Mastercard’s move toward independent decision-making could serve as a model for other corporations. The policy change emphasizes that companies can maintain brand safety without outsourcing critical decisions about content partnerships to external organizations with potentially biased standards.
The resolution of this dispute indicates that shareholders are becoming more vigilant about corporate involvement in activities that might limit free expression. For conservative media outlets and content creators who have expressed concerns about being targeted by advertising boycotts, Mastercard’s policy adjustment represents a significant acknowledgment of the need for corporations to maintain neutrality in the increasingly contentious media landscape.
