Perhaps the most gratifying theme that emerged from CBIS’ socially responsible investment (SRI) program’s work in 2008 was the agreement by several large corporations to offer increased levels of disclosure and transparency regarding social and environmental issues. Such disclosure is a central goal of our SRI efforts because it enables us to objectively measure and monitor the extent to which a company’s good intentions translate into equally positive actions. These agreements led us to withdraw several shareholder resolutions in favor of increasingly constructive discussions with management. The year was also notable for the access that we and our SRI partners were given to top executives and board members at major companies, including Time Warner, Cisco and Newmont Mining. Both developments are an encouraging measure of the respect that corporate executives and directors now give to SRI shareholders and to our views on corporate policies and strategies. Along with the growth of the SRI movement in recent years has come the recognition by many companies that SRI investors are not adversaries but strategic partners who share the same goals: corporate earnings growth and superior investment returns over a long-term investment horizon.
Participant Survey of SRI
In 2008, we conducted our fourth survey of participants’ SRI preferences. Administered every three to four years, the survey is a critical component of CBIS’ ongoing effort to ensure that SRI policies are consistent with the shared values of participants. Survey results help shape our choice of the issues we address and the strategies we use to address them. Our thanks go out to all those who participated in the survey.
Our 2008 survey highlighted two new issues that we will address in 2009: human trafficking, and companies that do business with governments that support genocide or terrorism. In addition, participants confirmed the critical importance they place on SRI policies that address the issues of abortion, environmental justice, sweatshops/contract suppliers, and access to water and the responsible use of water resources. Other key topics that participants underscored include military weapons contractors, global warming/climate change, the production of pornography, and pharmaceutical prices/universal access to healthcare.
We were especially pleased by another important finding of the survey: Eighty-five percent of Catholic investors believe that active ownership has a positive impact on corporations. Our active ownership program seeks to change corporate behavior through proxy voting, dialogues with senior management, and shareholder resolutions filed with corporations. We are pleased to see that Catholic investors continue to view this work as an important and effective means of improving corporate performance.