Socially responsible investors in the US have been warned about
SRI-like resolutions being proposed for company meetings that reprehend
the board for approving CSR measures.
An email alert from four SRI specialists sent to subscribers to
Institutional Shareholder Services (ISS), the corporate governance
proxy voting advisory service, says anti-CSR bodies such as the Free
Enterprise Action Fund (FEAF) are tabling resolutions that call for
better disclosure on issues such as charitable giving, climate change
and sustainability. But notes to the resolutions often go on to
criticize the company for its stance on social and environmental
matters.
A recent FEAF resolution calling for increased transparency at Goldman
Sachs, which ISS advised its clients to vote in favour of, went on to
criticize the bank’s policy on sustainable forestry, while a similar
resolution at General Electric’s annual meeting contained condemnation
of the company for policies that the FEAF – an investment fund that
aims to counter ‘left-wing social and political activists’ – says are
‘siding with global warming activists’.
The alert, which likens the groups tabling the resolutions to ‘wolves
in sheep’s clothing,’ says many ISS subscribers have automatically been
voting in favour of the resolutions because they appear supportive of
SRI. Other companies targeted include Du Pont and Wal-Mart.
