GAC targets companies for shareholder resolutions By Parker T. Williamson The Presbyterian Layman Thursday, October 1, 1998 LOUISVILLE - The General Assembly Council of the Presbyterian Church (USA) has voted to criticize several U.S. corporations through shareholder resolutions. Targeted for resolutions are, ARCO and Unocal, Intel, Citicorp, First Union, Nationsbank, Travelers Insurance Company, Exxon, and Hasbro. The proposal sailed through the General Assembly Council plenary session with no discussion and no objection. This action by the General Assembly Council authorizes a committee called Missions Responsibility Through Investment (MRTI) to hold "dialogues" with corporate managers on issues which MRTI finds offensive. If these discussions result in a change of policy for the corporations, then the PCUSA can withdraw its resolution before the corporation's annual shareholder meeting occurs. Lending records and "climate change" ethics ARCO and Unocal, two petrochemical companies, have been cited because they have refused to pull their operations out of Burma, after the Burmese government failed to institute democratic reforms, a demand that has been issued by several religious and human rights organizations. Intel, the world's leading semi-conductor company, has been targeted for concerns over the environmental problems of toxins in the workplace, particularly with transnational corporations with operations in countries where environmental standards are lax and/or unenforced. The denomination's resolution calls on Intel to prepare a report about its policies regarding supplier, vendor and subcontractor standards for environmental and occupational health responsibilities. Citicorp, First Union, Nationsbank and Travelers have all been cited for issues dealing with their policies on community reinvestment and equal credit opportunity. The Presbyterian Church (USA) action calls Citicorp's record "deficient." It expresses concern that the lending records of Nationsbank "leave much to be desired." It cites Travelers Insurance for its involvement in "sub-prime" lending (lending to borrowers believed to be more of a credit risk in exchange for higher interest rates), an area "of frequent abuse." First Union is cited for its purchase of The Money Store and other "sub-prime" lenders, declaring that "First Union's lending record poses problems in some areas." Exxon is being chastised for its failure to live up to Presbyterian Church (USA) "climate change" ethics. It says that the company has been "in the forefront of efforts to prevent any international agreement from being reached" on the issue of climate change. Hasbro, a major toy manufacturer with international operations whose revenues exceed $3 billion, has been cited by church officials for its non-cooperation in developing a code of conduct for wages, health, safety and working conditions, particularly in areas along the USA/Mexico border. The Presbyterian Church (USA) resolution quotes President Clinton on the morality of the issue: "It is not enough to establish tough rules. We must ensure that they are enforced, and that American consumers know they are being followed." |
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