Section:
csr
Annual Summary of Shareholder Engagement
2008-2009
The following action summaries and the chart of activities will give an insight into our shareholder engagement for 2008-2009.
HUMAN RIGHTS
DuPont: For many years we’ve been in dialogue with DuPont on the issue of genetically modified organisms. Our resolution asked DuPont to amend their human rights policy to include respect for and adherence to seed-saving rights of traditional agricultural communities. Our subsequent dialogue addressed DuPont’s support for the International Treaty on Plant Genetic Resources for Food and Agriculture as well as seed-saving and seed coating issues related to bee toxicity collapse.
Chevron: As cofilers of a resolution with the Wisconsin Jesuit Province and thirty six other shareholders, we are asking this transnational corporation that operates in countries with repressive governments, ethnic conflict, and poor labor and environmental standards to become more transparent and adopt a comprehensive, verifiable human rights policy. Last year we had a vote of 27.95% which is excellent. This year we’re hoping for a higher vote and better cooperation from the company.
Starwood Hotels: Our dialogues with Starwood have continued to be most successful in light of the fact that they have developed a Human Rights Policy and included in it a section the rights of children. They are also willing to work with the ECPAT (End Child Prostitution, Child Pornography and Trafficking of Children for Sexual Purposes) organization as they go forward with future education and training
MILITARISM AND VIOLENCE
Boeing, Caterpillar, United Technologies: Each year we also file resolutions with these companies related to ethical criteria for military production, offsets, and foreign military sales. The U.S. ranked first in arms transfer deliveries to developing nations with $10.3 billion this past year. Several times in recent history, we’ve seen weapons sold to one country result in a threat to our own security. As shareholders we asked for a comprehensive report on the company’s foreign sales of weapons-related products and services. For the most part, there is no dialogue because of Department of Defense contracts.
Lockheed Martin and Northrop Grumman: In 2007 Lockheed Martin ranked #1 on the Department of Defense Top 100 list with contracts valued in excess of $28.7 billion. The United States was alone in voting against the United Nations resolution on prevention of an arms race in outer space. The Prevention of an Arms Race in Outer Space (PAROS) resolution was adopted in March 2007 by a vote of 166 to 1. Before the annual meeting in Philadelphia, Tom McCaney and I participated in the Brandywine Peace Community protest. Lockheed Martin’s CEO, Bob Stevens, and Senior Vice President, James Comey, met with us and two other ICCR members before the AGM and did listen to our concerns.
VIOLENCE IN MEDIA
Blockbuster, Best Buy, Target, Toys ’R Us, Sears and Wal-Mart: With all of these retail companies, we have had successful dialogues around many aspects of sales and promotion of violent video games. We have enabled them to be more responsible in establishing policies for both in-store and internet use that will prevent youth from purchasing M-rated games. We are now completing a follow-up assessment on the impacts of violence in gaming and will be in dialogue with Microsoft on XBOX 360 and their sponsorship of gaming tournaments.
GLOBAL WARMING
Chevron: A resolution which we cofiled asked Chevron to report on the environmental implications of pursuing the expansion of oil extraction from the oil sands of Canada’s boreal forest. This highly resource-intensive process requires the draining of wetlands, diversion of rivers, removal of trees and vegetation, and emission of greenhouse gases. The company has challenged our resolution at the SEC and we are awaiting their decision.
Exxon Mobil: We cofiled a resolution that asks the company to adopt goals for reducing greenhouse gases from both products and operations. Exxon Mobil, in the past, has refused to make specific promises regarding GHG reduction, lagged behind other oil companies in investments in renewable technology, and failed to endorse legislation for mandatory reductions of emissions.
General Motors: We have pursued a dialogue that followed the filing of a resolution asking the company to set quantitative goals for reducing greenhouse gas emissions from their products. The company, in the midst of a battle for their continued existence, has changed focus and announced the inclusion of new fuel efficient cars while discontinuing less efficient brands and models.
ENVIRONMENTAL HEALTH
Sunoco: We contacted Sunoco Chemical regarding their manufacturing of Bisphenol A (BPA), a chemical with a variety of uses, among them making plastic water and baby bottles and the lining in food cans. Emerging science indicates that Bisphenol A is an endocrine disruptor and may cause neurological and behavioral problems in infants. The company agreed to stop selling to companies for these uses and congressional bills have been introduced to ban BPA from food and water applications.
Hasbro, Macy’s, J.C. Penney, Sears Holding, Target,Wal-Mart: Investor Environmental Health Network has enabled us to be very successful in our dialogues with these retail companies with regard to PVCs (Polyvinyl chloride). Each of these retailers is setting benchmarks/timeframes to phase out products and/or packaging that contain PVC, including lunch boxes, shower curtains, infant toys, and the packaging of certain products. These retailers are adopting safer alternatives as they become available.
ENVIRONMENTAL JUSTICE
Coca Cola: Coke has met several times with us on the effects their approximately 50 plants in India have had on the levels and quality of water in that country. The company has lauded its efforts in water collection, recycling, and conservation and has stated a goal of water neutrality. Interviews with NGOs and farmers on the ground paint a different picture. Dialogues continue as we gather different perspectives.
Massey Energy: We cofiled a resolution requesting the company report on the progress of the EPA ordered remediation of streams. Hundreds of miles of streams in Appalachia have been either buried or polluted as a result of their mountaintop removal mining process.
CONTRACT SUPPLIERS/VENDOR STANDARDS
Target, Wal-Mart, etc.: In our dialogues with these corporations, we are asking that supply chain monitoring be a major part of the company policy throughout the global community. This policy would be made public and independent monitoring would be part of the process. This continues to be a very serious issue for all companies who outsource to factories in developing nations. Our subcommittee of this area is working on research to identify specific purchasing practices. This committee is focused on improving working conditions in manufacturing facilities by motivating U.S. brands and retailers to integrate effective purchasing practices into their daily business.
ACCESS TO CAPITAL
American Express, Bank of America, Citigroup, Discover, J.P. Morgan Chase, and Wells Fargo: This year our resolutions and dialogues with these financial companies deal with predatory credit card lending practices. All of these companies have been open to dialogue and progress is being made with added pressure from congress, the White House, and consumers at large. We were primary filers at Bank of America, Citigroup, and Wells Fargo. We withdrew the Wells Fargo resolution because of the success of the dialogue and commitment to future dialogues. At Citigroup we received 26.41% of the vote and at Bank of America, we received 33% of the vote which is excellent.
ACCESS TO HEALTH CARE
Bristol-Myers Squibb, General Motors, H.J. Heinz, Johnson & Johnson, Kroger, McDonald’s, Pfizer, Target, Verizon Communications, Wal-Mart: In resolutions and dialogues with influential companies, we asked them to publicly adopt principles for national health reform. We do not request companies to support any specific principles for universal coverage but we do ask that they author their own.
Abbott Laboratories, Bristol-Myers Squibb, Merck: We are in dialogues with these pharmaceutical companies, attempting to convince them to adopt differential pricing for essential medicines for HIV, malaria, and tuberculosis in low-income countries. We also ask the companies to consider joining patent pools to share technology that could result in cheaper, more effective drugs and better access.
TOBACCO
Altria Group, Reynolds American: We filed a resolution titled “Food Insecurity and Tobacco Use,” asking both companies to report on the effect of their marketing strategies on the purchasing practices of poor people who smoke. We also asked them to evaluate what might be done to mitigate the harm to innocent children in these families.
CORPORATE GOVERNANCE
Cisco Systems: This resolution addressed the issue of excessive executive compensation and of holding the CEO accountable for the issue of pay. The vote at Cisco’s “say on pay” received 48%.
Time Warner: We had a successful dialogue with Mr. Clark, a board member, and withdrew our resolution.
Additional Summaries of Shareholder Engagement
(Word.doc 86kb)
