Early in 2009, Newmont Mining released a groundbreaking report that outlines policies for better community relations at its most contentious mining sites worldwide. The report was part of an initiative started in 2007, after CBIS raised concerns about community resistance to company operations in Peru, Indonesia and Ghana over the issues of mining waste disposal, water use, cyanide use and development on sacred lands. A CBIS-sponsored resolution that asked Newmont to improve its community relations policies won 94% of the vote at the company’s 2007 annual meeting. CBIS was then appointed to an independent advisory panel, along with noted human rights leaders and groups such as Oxfam, to help the company prepare its report. We are now awaiting Newmont’s action plan for policy implementation. We believe it is critical that the company prepare a report for stakeholders by its 2010 annual meeting that outlines the specific policies it plans to implement to improve community relations immediately and over the long term, the timetable for implementation, and the benchmarks and indicators it will use to assess progress and measure success.
Based on discussions held in 2009, led by CBIS, retailing giant Macy’s has instructed its suppliers to discontinue purchasing cotton from the country of Uzbekistan due to child labor concerns. Members of the Interfaith Center on Corporate Responsibility (ICCR), along with CBIS, are asking the world’s largest apparel brands and retailers to stop buying cotton harvested in Uzbekistan, the world’s third-largest cotton exporter. Each fall, state officials demand that children ages 11-17 leave school to work under poor sanitary, health and nutritional conditions to harvest cotton for two months in order to fill government-mandated quotas. As one of the nation’s largest retailers, Macy’s operates more than 800 department stores in 45 states. We are pleased that the company has also encouraged its retail and apparel trade association to write to the government of Uzbekistan and the U.S. Department of State encouraging decisive and immediate action to end the use of forced child labor in the cotton harvest. The Q3 2009 issue of Principles profiled CBIS’ active ownership initiative on this issue in the lead article, “A Harvest of Shame.”
Media and entertainment conglomerate Time Warner established in 2009 a substantive and innovative policy that outlines how its Board of Directors will evaluate the company’s leadership structure each year and the factors it will analyze to judge whether the structure is appropriate. The board has also committed to annually release a report with its conclusion and rationale. The move comes after five years of CBIS engagement with the company over its excessive compensation of top management. We appreciate the steps taken by the board to address shareholder concerns and believe that an improved process is now in place.
Based on discussions held in 2009, led by CBIS, retailing giant Macy’s has instructed its suppliers to discontinue purchasing cotton from the country of Uzbekistan due to child labor concerns.