January 31, 2005 - all day

Taking 'Stock' of Corporate Behavior: Using shareholder activism to promote and defend human rights

Since the 1970s, shareholders have used their power as stock owners to press companies for change on a wide range of human rights issues. These issues have included doing business under repressive regimes (such as apartheid South Africa or military ruled Burma); corporate use of security forces (as has occurred in Nigeria and Indonesia); and poor working conditions in factories. Join Simon Billenness and Larry Dohrs, two volunteer leaders with Amnesty's Business & Economic Relations Group, to discuss how shareholder activism works and how grassroots activists can leverage this type of pressure to help ensure corporate accountability for human rights.

Featured Guest: Amnesty BERG

From our featured guest: "We look forward to answering your questions on January 31. "

---

Question Submitted by Bob:

How do you begin to organize shareholders so that you can begin to bring pressure on corporate leaders to do a better job of respecting and promoting human rights?

Amnesty BERG answers:

Fortunately, shareholders have been organizing themselves for the past 30 years to press corporations on issues of human rights, social justice and the environment. Amnesty International USA has been able to simply plug into this existing infrastructure of concerned and active investors.

The leader is in this effort, for the past 30 years, has been the Interfaith Center on Corporate Responsibility, which is a coalition of Catholic, Protestant and Jewish religious institutions: http://www.iccr.org

The Social Investment Forum is a trade association of social investment firms and professionals that organizes an Advocacy and Public Program on shareholder activism: http://www.shareholderaction.org/

The AFL-CIO also organizes trade union pension funds on a range issues including labor and human rights.

Some of the largest owners of stocks are public employee pension funds. Public pension funds in California (Calpers) and New York City (NYCERS) are two leaders in using their big stock holdings to corporations accountable on human rights.

In the case of Amnesty International USA’s shareholder resolution at ExxonMobil, we worked closely with members of the ICCR and SIF as well as staff at NYCERS and the AFL-CIO to write our initial shareholder resolution and engage executives of ExxonMobil in dialogue on human rights.
-----------------------------------------------------------------

Question Submitted by Jackie:

I work for a large firm that has given me my first opportunity to open a 401(k). Unfortunately, I am only able to select from mutual funds that contain companies I don't support, such as Wal-Mart. How do I invest in already socially-responsible companies and how do I apply pressure to make those options more readily available to others in my firm who might want them?

Amnesty BERG answers:

Try organizing your fellow employees to ask for socially responsible mutual fund options. Your 401k provider will likely have several socially-screened options to offer if your firm requests them.

The Social Investment Forum lists dozens of socially responsible mutual funds: http://www.socialinvest.org/areas/SRIGuide/mfpc.cfm

The Social Investment Forum also lists investment professionals throughout the country who could advise you on options for your firm.

~Simon Billenness
-----------------------------------------------------------------

Question Submitted by MARIA PRANDI:

Is there a kind of 'shareholder activism handbook' in the USA?

Amnesty BERG answers:

We list three excellent resources on our Amnesty International USA guide to shareholder advocacy “Taking 'stock' of corporate behavior:” http://www.amnestyusa.org/business/shareholder.html

The Social Investment Forum (Advocacy and Policy Program) http://www.socialinvest.org/areas/sriguide/shareholder.htm

The on-line guidebook for shareholder activists produced by the environmental organization Friends of the Earth: http://www.foe.org/international/shareholder/

The Interfaith Center on Corporate Responsibility: www.iccr.org

~Simon Billenness
-----------------------------------------------------------------

Question Submitted by Moira:

What can we do locally to press corporations to promote and defend human rights?

Amnesty BERG answers:

Sign up for our Corporate Action Network (CAN)! http://www.amnestyusa.org/business/getinvolved.do

By signing you will receive updates and actions that you can do locally.

You can also access your local CAN worker who can plug you into activism being done through local Amnesty group chapters.
-----------------------------------------------------------------

Question Submitted by Rachelle:

Quick question, and a heads up to all AI members who hold shares in the Walt Disney Co that a proposal relating to China labor standards is being voted on at the next annual meeting on 2/11/05. Details are in the most recent proxy vote mailing, Proposal #5. The company is recommending shareholders vote against it. I think AI members need to send their votes in favor of the company having to report to shareholders on human rights labor standards in Walt Disney factories in China. Would you agree? Thanks!

Amnesty BERG answers:

Amnesty International USA is an endorser of the Business Principles for Human Rights of Workers in China
http://www.amnestyusa.org/business/chinaprinciples.html

The resolution at Walt Disney is primarily based on these human rights standards.
-----------------------------------------------------------------

Question Submitted by Barry:

Have you considered the possibility of systematically organizing progressively oriented consumers, as a large united block, with considerable purchasing power, to financially support business that have a good record on important ethical, social justice, environmental, and human rights issues, and boycott, or impose other sanctions on, businesses that have a very poor record on these kinds of issues? This might involve working cooperatively with other progressive organizations, to publish, on the internet, and in print, "report cards", or "watchdog" evaluations, of various specific businesses, in terms of their demonstrated level of ethical, social, and environmental integrity, or lack thereof. I believe that such an organized, large scale, united block of progressive consumers would provide a powerful financial incentive for businesses to be responsive and accountable in regard to these kinds of ethically significant issues.

Amnesty BERG answers:

Amnesty International has not supported consumer boycotts of companies in the past.

However, according to a recent change of policy, the top management of Amnesty International can under exceptional circumstances endorse a corporate boycott. At present, Amnesty International has not issued a call for any boycott of a specific company.

We do encourage Amnesty members to communicate to companies that they take the human rights record of companies into account when they make their own consumer purchases.

There are several good sources of information on the human rights' records of corporations.

Amnesty International is a supporter of the Business and Human Rights website that is best source of information on this subject: http://www.business-humanrights.org/Home

~Simon Billenness
-----------------------------------------------------------------

Question Submitted by Brandon:

This type of action was attempted in the 1970s under a campaign spearheaded by Saul Alinsky. It was a failure at that time, and to my knowledge has never been succesfully attempted. How does your plan differ from earlier efforts? What reason do you have to believe that this will be effective?

Amnesty BERG answers:

Amnesty International USA's use of shareholder activism has already resulted in some successes.

Our resolution and subsequent dialogue with ExxonMobil has helped press the company to adopt its first human rights policy as well as the Voluntary Principles on Security and Human Rights that were developed to guide companies in balancing the needs for safety while respecting human rights and fundamental freedoms. http://www.voluntaryprinciples.org/

In addition, Amnesty International joined other shareholders in successfully using a shareholder resolution to convince Alltel to explicitly bar discrimination on the basis of sexual orientation.

The difference in effectiveness is that Amnesty is collaborating closely with shareholders that have over 30 years of experience in organizing shareholder pressure. This experience includes the successful past campaign against corporate support for apartheid in South Africa. It also includes today's issues such as corporate use of sweatshops and corporate impact on climate change.
-----------------------------------------------------------------

Question Submitted by Kathleen:

What is the best way to eliminate the abuses that accompany the privatization of water by companies such as Coca Cola, Bechtel, and Nestle? Should we buy stock and appeal to CEOs or should we direct our efforts toward government entities that are tempted to sell water or the right to manage water to private companies?

Amnesty BERG answers:

Amnesty International USA has not addressed the issue of water privatization.

Other organizations, such as the Sierra Club and Alliance for Democracy, have picked up on this issue. They use a combination of direct pressure on the companies (both consumer and shareholder) as well as lobbying of governments, particularly at the local level.

~Simon Billenness
-----------------------------------------------------------------

Question Submitted by Lionel:

What can a stockholder do if they are told to shup up and sit down if they complain about questionable practices by the very company they hold stocks with?

Amnesty BERG answers:

Typically, company executives do not shout down their own shareholders.

But the answer is corporate stonewalling is to organize. In the next few months, the Corporate Action Network (CAN) will be organizing Amnesty members around the country in actions to put additional shareholder pressure on ChevronTexaco and Dow Chemical.

For more information about action in your area, sign up to the CAN listserv: http://www.amnestyusa.org/business/signup.html

~Simon Billenness
-----------------------------------------------------------------

Question Submitted by Don Timmerman:

Are you aware of the group called Coalition for Corporate Responsibility? Fr. Mike Crosby is one of the leaders of this group.

Amnesty BERG answers:

Fr. Mike Crosby is a long-time member of the Interfaith Center on Corporate Responsibility (ICCR): http://www.iccr.org

He has been active in filing resolutions on human rights at corporations that do business in China.

Amnesty International USA has works closely with many ICCR members on our shareholder advocacy with ChevronTexaco, Dow Chemical and ExxonMobil.
-----------------------------------------------------------------

Question Submitted by Marita:

Regarding conflict diamonds, why is there no built in accountability as to point of origin that has to be met by international certification? I understand that the current percentage of diamonds covered by the Kimberley Process is only 3%.

Amnesty BERG answers:

According to the Kimberley Process webpage, Kimberley Process Participants actually account for approximately 99.8% of the global production of rough diamonds.

The Kimberley Process Certification Scheme (KPCS) is a voluntary system that imposes requirements on participants to certify that shipments of rough diamonds are conflict-free.

In response to pressure from NGOs, the diamond industry also implemented a system of self-regulation to support the Kimberley Process, to provide consumers with additional assurances.
This voluntary self-regulation covers the entire diamond supply chain, from mine to point of sale (not just rough diamonds), and requires the industry to implement a code of conduct to prevent the buying and selling of conflict diamonds. It also provides for a system of warranties, underpinned through verification by independent auditors of individual companies and supported by internal penalties set by industry, which is designed to help to facilitate the full traceability of rough diamond transactions by government authorities.

However, it can only be considered effective in assuring that conflict diamonds have not entered the legitimate trade if all sectors of the diamond industry effectively implement the system of warranties. More importantly, the system must be audited or verified independently, and monitored by appropriate government agencies. In the United States, the KPCS is enforced by the Clean Diamond Trade Act, also introduced in 2003, which requires annual reviews of the standards, practices and procedures of any entity in the US that issues KP certificates for the export of rough diamonds. Though some progress has been made, we are concerned that weaknesses may still exist in both implementation and oversight, creating loopholes which could allow conflict diamonds to enter the United States.

Amnesty International is organizing actions on conflict diamonds around Valentine's Day. Contact corpaction@aiusa.org to get involved.

~Simon Billenness
-----------------------------------------------------------------

Question Submitted by Marita:

Regarding Coca Cola - What is happening with the progress on the Alien Tort Claims Act suit involving Colombia, Coca Cola and the Unions?

Amnesty BERG answers:

The suit against Coca-Cola regarding Colombia was brought by the International Labor Rights Fund. For more information, check the ILRF website: http://www.ilrf.org

Regarding the Alien Tort Claims Act (ATCA) - the U.S. statute that allows companies to be held accountable for connection to human rights abuses abraod - Amnesty International is concerned that they may be attempts in Congress to weaken or repeal the law.

For more information on this law, check out the ATCA update on the Amnesty website: http://www.amnestyusa.org/business/atca.html

~Simon Billenness


-----------------------------------------------------------------

Question Submitted by Lori:

Is it necessary to attend shareholder meetings to raise issues? If not, what is the most effective way to communicate with the company?

Amnesty BERG answers:

It is not necessary to attend shareholder meetings to raise issues with a company. However, it is always effective to go to the meeting and ask questions directly of the corporate CEO.

Write to the company CEO directly. Explain your concerns and ask direct questions. Always mention if you are a shareholder and/or customer of the company. Copy your letter to other top executives of the company.

On the Amnesty website, you will find ready-made letters and postcards to send to specific companies.

You can write concerning ChevronTexaco http://takeaction.amnestyusa.org/action/index.asp?step=2&item=11439 and to Dow Chemical http://takeaction.amnestyusa.org/action/index.asp?step=2&item=11318

~Simon Billenness


-----------------------------------------------------------------

Question Submitted by Dan:

Does AI have a mechanism to send requests for actions to shareholders of particular companies, and if so how can a member indicate which company(s)he holds stock in?

Amnesty BERG answers:

The Amnesty International will soon be distributing action alerts focusing on the annual shareholder meetings of ChevronTexaco and Dow Chemical.

To receive these updates, sign up to our Corporate Action Network. http://www.amnestyusa.org/business/signup.html

You do not need to be a shareholder of either compoany to participate.

~Simon Billenness


-----------------------------------------------------------------

Question Submitted by Loran:

My retirement funds go into a "social choice" account (TIAA-CREF). How can I find out what they're being used for and make my opinions known?

Amnesty BERG answers:

Under recent new regulations, mutual fund companies now have to disclose how they vote their shares.

Contact TIAA-CREF directly and ask them for a copy of the fund's current holdings and how you can access the fund's voting record.

Anyone who owns mutual funds can now demand this information from their mutual fund company. Use that information to watchdog your funds and lobby them to vote in favor of shareholder resolutions that address human rights and other issues of concern to you.

You can learn more mutual funds and shareholder resolutions on the website of the Social Investment Forum. http://www.shareholderaction.org/campaigns/mutual_fund_summary.cfm

~Simon Billenness
-----------------------------------------------------------------

Question Submitted by Vicky:

Corporations are legally required to operate in the best interests of their shareholders, as represented by the directors they elect. Does the law provide that "best interests" of the shareholders/corporation include appropriate consideration for its employees and community, whereever it operates in the world?

Amnesty BERG answers:

All companies have a direct responsibility to respect human rights in their own operations. Amnesty International believes that the business community also has a wider responsibility -- moral and legal -- to use its influence to promote respect for human rights.

The Universal Declaration of Human Rights calls on all organs of society to respect and uphold human rights. That includes corporations.

The Amnesty USA website contains a checklist of human rights that intersect with corporate operations. http://www.amnestyusa.org/business/checklist.html

In addition, there is a growing body of evidence that corporations, which respect human rights, can safeguard their reputation and brands while generating benefits for their core business.

~Simon Billenness
-----------------------------------------------------------------

Question Submitted by michael Mensah:

I have only very few shares with different companies. How will this affect them if I take action?

Amnesty BERG answers:

Wheter you own shares or not, your action has a tremendous impact on corporations when added to the actions taken by Amnesty members all over the world.

You can join up with your local Corporate Action Network worker through our website. http://www.amnestyusa.org/business/coordinator.html

Wherever you live in the United States, there are Corporate Action Network members with whom you can pool your activism.

~Simon Billenness
-----------------------------------------------------------------

Question Submitted by Harriet:

Where can I find "socially responsible ratings" for individual companies? I realize that such information is readily available for mutual funds, but I do not know the sources for individual stocks.

Amnesty BERG answers:

The Business and Human Rights Resource Center is continually developing its information on the human rights impact of specific corporations. http://www.business-humanrights.org

There are also resources for socially responsible consumers that may be of use.

Responsible Shopper (a project of Co-op America) http://www.responsibleshopper.org/

Idealswork http://www.idealswork.com
-----------------------------------------------------------------

Question Submitted by Cecilia:

Hi! This is Cecilia Furió, from spanish news agency Europa Press, CSR Department. In Spain, shareholder activism barely exists. Our investors are not mature enough? On the other side, our business with countries like China is increasing. Do you think our companies are not aware of the risks of negotiating with a dictatorship or is it that it's easier to simply ignore them?

Amnesty BERG answers:

It is true that corporate accountability appears to be much more developed in countries such as Great Britain, the Netherlands and the United States compared to Spain.

However, shareholders and watchdog groups, such as Oxfam Intermon, are increasingly organizing in Spain. As these initiatives grow, there will be more pressure on Spanish business to be socially responsible.

~Simon Billenness
-----------------------------------------------------------------

Question Submitted by Yolanda:

I am very interested in this topic and how I can help. However, I am a soldier in the U.S. Army, and very soon I will be in stationed in Camp Casey, Korea. How can I do my part from abroad? Any suggestion would be greatly appreciated.

Amnesty BERG answers:

Our impact on governments is more effective when we live - and vote! - in the country.

However, corporations increasingly know no boundaries. The flip-side of that is our activism work around corporations is effective wherever on earth we live or shop.

Your letters to corporations are just as effective if you write from Kalamazoo or Korea. Using Amnesty's web-based action center, you are still only a click away. http://www.amnestyusa.org/business/actions.do

~Simon Billenness
-----------------------------------------------------------------

Question Submitted by Larry:

I own some stock. What about the ballots that occasionally arrive at my home? How can I use them for maximum effectiveness in supporting human rights?

Amnesty BERG answers:

Check your ballots for resolutions on human rights and vote your shares!

For additional impact, write a separate letter to the corporate CEO and head of Investor Relations to tell them of your vote.

~Simon Billenness
-----------------------------------------------------------------

Question Submitted by Jim:

A lot of people assume investing in social justice is less profitable than regular investing. How do you answer them?

Amnesty BERG answers:

There is now considerable empirical research to show that socially responsible investing generates the same returns - if not better - than traditional investing.

For more information on the returns and fees of socially responsible funds compared to traditional investments, check out the website of the Social Investment Forum. http://www.socialinvest.org

~Simon Billenness
-----------------------------------------------------------------

Question Submitted by Kathleen:

Given the high level of "corporatism" in government and the marriage between the two, how can the average system ever hope to bring the corporation to its knees? I'm talking specifically now about the oil industry and the Bush government, which is completely interconnected and driving our foreign policy.

Amnesty BERG answers:

While powerful, corporations do depend on us as their customers and shareholders. In addition, many corporations understand that a good record of corporate responsibility is required to attract a quality workforce.

In holding corporations accountable, look to how you spend and invest your money as well as what you do for work.

In addition, see how you can support laws and other frameworks to hold corporations accountable to human rights. For instance, Amnesty International supports the UN Norms on Business and Human Rights as a global framework for corporate accountability. http://www.amnestyusa.org/business/un_norms.html

~Simon Billenness

-----------------------------------------------------------------

Question Submitted by Robin:

I'm not a stockholder in any corporation (not even through a 401k), therefore, I'm technically not a shareholder. Is there anything I can do as an unaffiliated individual to help with this kind of effort?

Amnesty BERG answers:

You don't have to be a shareholder to have impact on a company.

For instance, companies also listen carefully to their customers. If you buy gasoline, you are most likely a customer of one of our current focus companies, ChevronTexaco.

In addition, the city and state in which you live may well manage a pension fund for their employees. City and state treasurers are in many cases directly elected officials. Consequently, you can lobby them, as a voter and taxpayer, to vote their shares in favor of resolutions that address human rights.

Our Corporate Action Network action alerts are designed so that anyone - shareholder or not - can send them in. http://www.amnestyusa.org/business/actions.do

~Simon Billenness
-----------------------------------------------------------------

Question Submitted by Joclynne Ballard:

This seems extremely embarassing that we are dealing with issues from 100 years ago and beyond. Why are there not STANDARDS so that we may move forward?

Amnesty BERG answers:

Amnesty International has compiled a checklist of human rights principles that corporations need to respect. http://www.amnestyusa.org/business/checklist.html

In addition, Amnesty International is pushing for wide adoption of the UN Norms on Business and Human Rights. http://www.amnestyusa.org/business/un_norms.html

Standards do indeed exist. However, it requires more advocacy by us at the corporate and governmental level to ensure that corporations comply with these standards.

~Simon Billenness
-----------------------------------------------------------------

Question Submitted by Diana:

Is there a list of corporations that have refused to buy products made in labor camps in China which imprison Falun Gong practitioners and other prisoners of conscience?

Amnesty BERG answers:

Many corporations have a policy of not buying goods produced by forced labor and/or prison labor. In addition, U.S. law forbids the importation of prison labor goods.

From time to time, there are reports of products made in Chinese prisons - or laogai - reaching the United States. Invariably, the corporations involved quickly ensure that it doesn't happen again.

The Laogai Research Foundation tracks Chinese prison labor and other related issues. http://www.laogai.org
-----------------------------------------------------------------

Question Submitted by Indi:

How do you determine which companies you can influence through shareholder activism and which you cannot?

Amnesty BERG answers:

For the past three years that Amnesty International USA has used shareholder activism, we have found all of our focus companies have been responsive to dialogue about changes in their policy and practices. These changes include adoption of a human rights policy by ExxonMobil, one of the largest and most powerful corporations in the world.

Typically, corporations are most susceptible to influence if they safeguard their reputation, sell directly to consumers, and/or have a significant number of socially responsible shareholders.

~Simon Billenness
-----------------------------------------------------------------

Question Submitted by mary theresa:

Would it be useful to send alerts about shareholder actions to make corps more socially responsible? Or do we see them on our proxies already? I know I've seen many and voted for them, but perhaps I'm missing some actions. Would it be helpful to suggest alternatives to major offenders and/or list responsible companies that are good investments? I see a bit of that in Co-op America's money management letter, but it's sprinkled through various issues. A list would be nice -- maybe different types of companies each month or whenever. (Do you work with Co-op America? Maybe a good partner.)

Amnesty BERG answers:

Sign up for our Corporate Action Network (CAN)! http://www.amnestyusa.org/business/getinvolved.do

By signing you will receive updates and actions that you can do locally. This is an ideal forum for organizing joint actions. It's always worthwhile to support your proxy votes with a separate letter to the CEO explaining who you are and what your reasons are for your vote.

You can also access your local CAN worker who can plug you into activism being done through local Amnesty group chapters.
Amnesty does not yet have the capacity to create a comprehensive rating of companies based on human rights criteria, but your support in joint actions that we do undertake is most welcome. The Social Investment Forum http://www.socialinvest.org can guide you toward other research tools for assessing companies based on human rights criteria.
Larry Dohrs
-----------------------------------------------------------------

Question Submitted by maria maciver:

l. General Electric..still into military hardware or divested of Lockheed and Martin? 2.Why aren't financial advisors aware of social responsible investment..mine had never heard of PAX 3. If I transfer funds from GE and Exxon etc., what are good alternatives that will uphold our value system

Amnesty BERG answers:

General Electric is still in the military hardware business.

You may have to seek out an advisor who is aware of socially responsible investment, but given the fact that social investing has grown rapidly in recent years, so that now more than 10% of investment dollars pass through some kind of social screen, one would think that good advisors are already aware.

Answers to these questions likely depend on your own specific investment needs, portfolio size, time frame, etc. You may be best off with SRI mutual funds or with individual stocks. But good alternatives are definitely out there!

Larry Dohrs
-----------------------------------------------------------------

Question Submitted by Asokananda:

Asokananda Prosad, B.E. (C.U.)Date – 29.01.2005. Director : Satishree Press and Adarsha Prokashani Editor : ‘Nandan Kanan’ and ‘Sudhi Sahitya’ General Secretary: Ma-Mahajnan Vishwa Kalyan Trust Independent Scholar: Phil. Documentation Center, Ohio, USA Member: Amnesty International India and Online Action Center, USA. Postal Address: North Inda , Kharagpur – 721 305, India Tel : ( 03222 ) 225063 (10 am to 10 pm) and 225176 (10 pm to 10 am) E-mail : aprosad@yahoo.co.in and a_prosad@rediffmail.com Thanks Mr. Simon Billenness and Mr. Larry Dohrs for being adventurous. Amnesty International USA performs multifarious activities and even in the face of dire consequences its members come out victorious. We do pray to the Almighty, may you achieve something good and great. Now, I would like to ask you a very simple question. Could you tell me what the difference between TOUTURE and TYRANNY is? The names of the countries you have mentioned are mostly involved not only with mere torture but with tyranny. And unless the big powers look after those totalitarianisms how we the ordinary members can arrive at a target? Excuse me, please don’t allow the Govt. of US alone to move ahead. The result of which will evidently be frustrating Afghanistan and Iraq. Am I correct? Let me have your say. Regards. Asokananda Prosad.

Amnesty BERG answers:

Torture is abuse of individuals, tyranny is abuse of a community or society.

It is important that we fulfill our roles as investors, consumers and citizens to communicate and promote our values and human rights. This means shareholder action, letters to companies as well as governments, and citizen lobbying on behalf of human rights at our own government level. Above all we must organize! Please sign up for our Corporate Action Network (CAN)! http://www.amnestyusa.org/business/getinvolved.do

Larry Dohrs
-----------------------------------------------------------------

Question Submitted by Fred Nadelman:

What is being done to hire more minorities and promote a healthy environment?

Amnesty BERG answers:

Shareholder advocacy, by which shareowners assert their rights and responsibilities as company owners, actively addresses both of these areas. Research suggests, for instance, that companies with more diverse boards of directors enjoy better financial performance than companies without such diversity. That gives shareholders a very strong argument on behalf of diversity at the companies they own.

To learn more, see our Amnesty International USA guide to shareholder advocacy “Taking 'stock' of corporate behavior:” http://www.amnestyusa.org/business/shareholder.html
As well as...

The Social Investment Forum (Advocacy and Policy Program) http://www.socialinvest.org/areas/sriguide/shareholder.htm

The on-line guidebook for shareholder activists produced by the environmental organization Friends of the Earth: http://www.foe.org/international/shareholder/

The Interfaith Center on Corporate Responsibility: www.iccr.org
Larry Dohrs
-----------------------------------------------------------------

Question Submitted by Jen:

What can I do as a consumer? I don't have much info on this topic.

Amnesty BERG answers:

What can I do as a consumer? I don't have much info on this topic.

Most important is to communicate with companies, ask what their human rights policies and practices are, ask about specific cases that you may be aware of. Some further resources for consumers are:
Responsible Shopper (a project of Co-op America) http://www.responsibleshopper.org/

Idealswork http://www.idealswork.com
Larry Dohrs
-----------------------------------------------------------------

Question Submitted by Anjon:

Does Amnesty have a position on Google, Yahoo, and other search engine/internet technology firms for their operations in China? If so, what would be the SRI shareholder advocacy framework for this? Thanks

Amnesty BERG answers:

Amnesty does not have a position on this specifically, but we have engaged in internal discussions about companies that may be providing technology and/or training that enables the Chinese government to censor the internet and arrest citizens for engaging in free speech online. Please join our Corporate Action Network (CAN) at http://www.amnestyusa.org/business/getinvolved.do for any updates.

It is critical as individuals that we communicate with companies. Write them and ask them what their policies and practices are on these issues. Dialog really does contribute to companies' awareness or issues we care about.
Larry Dohrs
-----------------------------------------------------------------

Question Submitted by Doug:

I’m organizing a campaign at the University of Iowa to convince the Board of Regents to consider human rights and environmental factors in their investment practices. One our suggestions to the University and the Regents is that they engage in shareholder activism. So, I have two questions: 1) Where do you think I could find the best resources for explaining and promoting shareholder activism? 2) Do you have any advice for this kind of a campaign in general?

Amnesty BERG answers:

This is a great idea. Congratulations for carrying it forward. First, please join the Corporate Action Network (CAN) at http://www.amnestyusa.org/business/getinvolved.do so we can be aware of your efforts, and so you can be in touch with CAN coordinators who may be able to help you.

You will find that the Regents are probably far more receptive to shareholder activism than they are to divestment. If that is the case, fine. An institution of that size can have a powerful impact as an active investor.

You should find out a few things about the university's current policies and practices: Who manages their money? What is the policy by which the manager makes decisions on proxy votes? What is their voting record on particular issues? This is information that they should be willing to provide. After all, mutual fund companies are now required by law to provide this information to their investors, so it is reasonable that the university provide it to its constituents.

Being involved in shareholder advocacy does not involve selling or buying shares, and so does not affect financial performance (the Regents will likely mention their fiduciary duty, which they may well define as only achieving the highest financial return possible). Mention to them that the Securities and Exchange Commission considers proxy voting to be part of fiduciary duty as well. Therefore, the proxies must be voted. The only question is whether they're voted in support of human rights and the environment, or not.

As Simon mentioned above, we list three excellent resources on our Amnesty International USA guide to shareholder advocacy “Taking 'stock' of corporate behavior:” http://www.amnestyusa.org/business/shareholder.html

The Social Investment Forum (Advocacy and Policy Program) http://www.socialinvest.org/areas/sriguide/shareholder.htm

The on-line guidebook for shareholder activists produced by the environmental organization Friends of the Earth: http://www.foe.org/international/shareholder/

The Interfaith Center on Corporate Responsibility: www.iccr.org
Stay in touch,
Larry Dohrs
-----------------------------------------------------------------

Question Submitted by Boris:

Can we get some practical advice - what companies, how many shares does one need to buy to be able to influence and how to do it? Thanks!

Amnesty BERG answers:

Three levels of response:
1) You really don't need to be a shareholder to influence a company. You can influence them by communicating your positions to them as a citizen, a consumer or an investor (whether or not you invest in the target company). Normally you can also get a copy of the company's annual report and proxy materials by contacting their investor relations office.
2) Even owning one share is enough to get you into the annual meeting. There is usually a question and answer session where you can speak directly with top management and the board of directors.
3) If you want to file or co-file a shareholder resolution, you need to have owned at least $2000 worth of the stock (not 2000 shares!) for at least one year. Then, the resolution must be filed by a deadline several months prior to the annual meeting, must be 500 words or less, and must be germaine to the business as a whole (i.e. you can't file a resolution to get your job back after being fired...).

More of the shareholder activism basics can be found in the materials referenced above. Generally it is best to work with other social investors to build up a "filing group" that encourages the company to take your efforts seriously.

As to which companies, that is best left to you, based on your areas of expertise and interest, as well as your geographic location. Amnesty is always in favor of companies having a comprehensive, verfiable human rights code of conduct, particularly one that references the UN Norms for Business as a standard. Ask companies in question if they have such a document, and move forward as appropriate.

Larry Dohrs
-----------------------------------------------------------------

Question Submitted by Larry:

Is there a list of certain mutual funds to avoid for the purpose of not supporting human rights violations? Example - I would not want to support a company that makes the materials for prisons, etc.

Amnesty BERG answers:

Look for some of the most progressive socially responsible mutual funds. You can find them listed at http://www.socialinvest.org/areas/SRIGuide/mfpc.cfm
Contact the funds directly and ask their policies on the issues you care most about. You might also ask them about the level of shareholder activism they engage in. Often this is an excellent indicator of the fund's commitment to positive social change.

Larry Dohrs
-----------------------------------------------------------------

Question Submitted by DeAnna:

Can you walk us through a shareholder campaign from the beginning and give some basics, such as: How many shares do we need to purchase in order to introduce a resolution? How do we find model shareholder resolutions? There may be some people as ignorant as I am...How do I even buy shares? How do I find out what other organizations may be targeting the same company we are? EnCana. Thanks

Amnesty BERG answers:

You will find the answers to several questions in the answers just above.

Model shareholder resolutions can be found by communicating with groups such as the Interfaith Center on Corporate Responsibility at www.iccr.org, the Shareholder Action Network at www.shareholderaction.org, or the Social Investment Forum at www.socialinvest.org. It's a good idea to study successful resolutions, or to work in cooperation with those who have experience filing and defending resolutions to give yours the best chance of being put forth to all shareholders.

Buying shares is as simple as opening an account at a brokerage and making a purchase. Online or discount brokerages will offer lower commissions. Be aware that the commissions you pay to brokers may well help support politicians or political positions antithetical to your own, so be a concsious consumer in this arena as well.

Larry Dohrs
-----------------------------------------------------------------

Question Submitted by Claire:

What is Amnesty's position on fair trade?

Amnesty BERG answers:

To my knowledge, Amnesty does not have a position on fair trade per se. But Amnesty does support the full range of human rights described in the UDHR, including Economic, Social and Cultural rights. And Amnesty definitely supports the use of social and environmental critieria as we make our purchasing and investment decisions.
Larry Dohrs
-----------------------------------------------------------------

Question Submitted by Geoffrey:

What actions will Amnesty be undertaking in the near future that I can get involved with?

Amnesty BERG answers:

We are really gearing up for more action. In the next few months, the Corporate Action Network (CAN) will be organizing Amnesty members around the country in actions to put additional shareholder pressure on ChevronTexaco and Dow Chemical.

For more information about action in your area, sign up to the CAN listserv: http://www.amnestyusa.org/business/signup.html
Many thanks to all who participated. We look forward to working together with you to protect and promote human rights for all!
Larry Dohrs

-----------------------------------------------------------------

ASK AMNESTY Home

The views expressed in the online discussions hosted on this site reflect the views of the discussion guests and do not necessarily reflect those of Amnesty International USA. Amnesty International USA does not necessarily sponsor, endorse, recommend or license content posted by third parties.