CBIS’ SRI program consists of a broad range of activities including:
All our SRI efforts share one goal — to serve and advance the values of CBIS participants in the marketplace. Likewise, the theme of strengthening our institutional foundation for success, in order to enhance our ability to serve participants, was evident in our SRI program in 2007, similar to corporate-level efforts.
A major initiative of the year, albeit an unexpected one as 2007 began, was our campaign to defend the very right to file shareholder resolutions on behalf of participants. In early summer, the Securities and Exchange Commission (SEC) undertook a broad reexamination of the legal framework that regulates shareholder rights and proposed rule changes that could have enabled companies to omit social resolutions from their proxy ballots and raised the first-year vote threshold required to re-file resolutions for a second and third year. Shareholder resolutions are a key tool in our effort to engage companies on issues of social justice. Additionally, in response to the SEC’s moves, CBIS joined a coalition of investors that included the Interfaith Center on Corporate Responsibility (ICCR), the Social Investment Forum (SIF), public pension funds, union funds and other asset managers to fight these proposed changes. We traveled to Washington, D.C., and advocated for our interests on Capitol Hill; we submitted a detailed comment letter opposing the changes to the SEC, and sent one directly to SEC Chairman Christopher Cox. We also organized a participant campaign against the proposed incursion on shareholder rights, drafting a sample letter which participants could send directly to the SEC.
Fortunately, the broad effort was a tremendous success. Between CBIS, our ICCR partners, SIF and others, more than 30,000 letters were sent in opposition to the SEC’s proposals — the largest response to a request for comments ever received by the agency. CBIS participants alone submitted over 50 letters. By year-end 2007, the SEC had decided to withdraw the troublesome proposals and it reaffirmed its longstanding policy framework, thereby preserving our ability to use resolutions as a tool for corporate advocacy.
Also during 2007, we expanded our issue research capability and advanced our goal of expanding our network of alliances with Catholic institutions in the form of a partnership with the National Catholic Bioethics Center (NCBC) for the study of SRI policy in the area of embryonic stem cell research. Established in 1972, the NCBC is a leading Catholic organization engaged in research, consultation, publishing and education to promote human dignity in healthcare and the life sciences.
While some believe that embryonic stem cell research offers much potential for the development of treatments and cures for diseases, the destruction of developing human embryos violates Catholic teaching about the sanctity of human life. Medical research is moving quickly in this area, with considerable scientific advancement and change over the past several years. We are working with the NCBC to ensure that our Principled Purchasing policies on embryonic stem cell research are consistent with both Catholic teaching and our fiduciary duty.
While some believe that embryonic stem cell research offers much potential for the development of treatments and cures for diseases, the destruction of developing human embryos violates Catholic teaching about the sanctity of human life.