BP CEO Sir John Browne said in a speech last week in London that his company no longer would make political contributions anywhere in the world. He said BP’s policy shift reflects a desire to help preserve, or perhaps restore, the “legitimacy” of the political process and of governments around the world, but particularly in the United States, which is where most of BP’s political donations have been directed.

Although the current debate about Enron’s influence on the Bush administration clearly played a role in BP’s decision, the change has its roots in U.K. politics of the mid-1990s. It is believed that one of the major factors leading to the overthrow of the conservative government in the United Kingdom and the success of Tony Blair and the Labor government was the issue of political “sleaze,” or alleged corporate and individual influence through contributions to the conservative government. The same debate is playing out today in the United States with Enron Corp.

Although companies might not be as powerful as some people think or fear, they do still have “the ability to make choices, to apply resources…to make things happen,” Browne told the Royal Institute of International Affairs in London. “We can’t deny that power…and therefore we must make sure it is used with the greatest care.

“We have to remember that however large our turnover might be, we still have no democratic legitimacy to determine how society will develop. We have a very important role in society, but we mustn’t confuse our role with the roles of others. In particular we must be particularly careful about the political process — not because it is unimportant — quite the reverse — but because the legitimacy of that process is crucial both for society and for us as a company working in that society.” Browne said that government provides the “structures and the security which underpin trust” in our society and without it “human progress is impossible.”

“That’s why we’ve decided, as a global policy, that from now on we will make no political contributions from corporate funds anywhere in the world,” he said. “We’ll engage in the policy debate, stating our views and encouraging the development of ideas — but we won’t fund any political activity or any political party.”

BP’s political contributions have been relatively modest. The Center for Responsive Politics, a non-profit organization that tracks money in U.S. politics, shows that BP made $194,100 in federal political contributions last year, 88% to Republicans and 12% to Democrats. In contrast, ChevronTexaco contributed $593,655 last year (68% to Republicans), ExxonMobil contributed $415,720 (88% to Republicans) and Enron gave $318,684 (94% to Republicans).

A BP spokesman said the company donated $840,000 last year to various federal and state political causes in the United States. In other parts of the world, BP political donations were much less. BP already has committed to $500,000 in PAC contributions this year, and this policy change won’t affect those, the spokesman said. The policy change will take affect in April.

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