Company Descriptions
The General Board communicates with many companies about environmental stewardship, human and workers’ rights, access to health care and sound corporate governance practices. Here are summaries of our current corporate dialogues.
Abbott Labs
Status: Dialogue
Background: The United Methodist Church has identified as one of its four focus areas, “Combating the diseases of poverty by improving health globally”. In support of this, the General Board began participating in conversations with Abbott Labs about the company’s efforts to provide medicines to persons in low and middle-income countries. The dialogue has focused on the challenges of reaching patients with HIV/AIDS, Tuberculosis and Malaria. It is anticipated that this dialogue will continue.
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Bristol Myers-Squibb
Status: Dialogue
Background: The United Methodist Church has identified as one of its four focus areas, “Combating the diseases of poverty by improving health globally”. In support of this, the General Board initiated a conversation with Bristol Myers-Squibb in 2010 about the company’s efforts to provide medicines to persons in low and middle-income countries. The dialogue has focused on the challenges of reaching patients with HIV/AIDS, Tuberculosis and Malaria. It is anticipated that this dialogue will continue.
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Caterpillar
Status: Dialogue
Background: In 2005, the General Board co-filed a resolution at Caterpillar requesting that the company prepare a sustainability report. Sustainability reports generally disclose important information about a company often not included in annual reports or filings required by the Securities and Exchange Commission, including environmental impacts, social policies, labor and human rights issues and corporate governance guidelines. In 2006, the General Board and other proponents withdrew the resolution following Caterpillar's commitment to publish a report and to involve shareholders in the review process of the draft report.
In 2008, the General Board, working with the United Methodist General Board of Church and Society and other faith-based investors, contacted the company to discuss the use of its products in Middle East occupied territories. Two meetings were held during which investors shared their concerns about Caterpillar’s human rights policies. As a result, the company made slight revisions to language relating to the responsible use of its products. Since then, the General Board has continued to write and express our belief that the company’s policies expose Caterpillar – and by extension, its shareholders - to reputational and financial risk.
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Community Health Systems
Status: Resolution withdrawn
Background: In 2009 the General Board contacted Community Health Systems, seeking information about the company’s sustainability policies and programs. The company did not respond, therefore a shareholder resolution was filed that requested the publication of a sustainability report.
During subsequent dialogue, the company agreed to the request and the resolution was withdrawn. The Sustainability Report was published in 2010 and the General Board is providing further consultation on the information contained in the report.
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ConAgra
Status: Dialogue
Background: The General Board began a dialogue in 2009 with ConAgra Foods asking the company to consider reducing the amount of pesticides that are applied to potato fields. The United Methodist Church has voiced concern about the excessive use of pesticides and supports a gradual transition to sustainable and organic agriculture. In 2010, ConAgra established five sustainability goals to be achieved by 2015, including using fewer agricultural chemicals and reductions in water use.
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Fred's
Status: 2010 Resolution received 7.65% of the vote
Background: In 2009 the General Board contacted Fred’s, seeking information on the company’s supply chain. The company was not responsive, therefore, a shareholder resolution was filed which received 7.65% of the vote.
Further analysis of the company revealed that for two consecutive years, the number of “withhold” votes for every member of the board of directors exceeded 50%, yet no action was taken to restore shareholder confidence, In addition, 77% of shareholders voted in favor of a 2009 resolution that asked to company to adopt a majority vote policy for election of board members. Again, the company failed to act.
In 2010 the General Board wrote to Fred’s to ask how the company planned to address the high number of “withhold” votes from the directors. The company did not respond.
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Hewlett-Packard
Status: Dialogue
Background: The General Board contacted Hewlett-Packard in 2008 concerning the company’s human rights policies and practices in Israel and the Middle East. The company agreed to meet via conference call in March 2009, but later canceled the meeting and committed to responding to investor questions in writing. A meeting was later held in 2010, where the company reported that it was conducting a global human rights impact assessment of its operations. The General Board is seeking a follow up meeting to learn the results of the assessment.
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Hormel
Status: Dialogue
Background: The General Board began a dialogue in 2009 with Hormel that focuses on issues of sustainability within the meat supply chain. The General Board continues to meet periodically with Hormel to discuss various issues, such as the use of antibiotics in animals, environmental pollution, air emissions and worker safety in animal processing facilities.
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Standard Pacific
Status: Resolution filed
Background: For the 2007 annual meeting, the General Board filed a resolution concerning the company's policies and practices pertaining to energy efficiency. The United Methodist Church supports measures calling for a reduction of carbon dioxide, methane, nitrogen oxides and sulfur dioxide, which contribute to acid rain and global climate change. The company challenged the General Board's resolution at the Securities and Exchange Commission (SEC), and the SEC ruled that the resolution could be omitted from Standard Pacific’s proxy materials.
In 2008, the General Board filed a shareholder resolution asking the company to develop quantitative goals for reducing greenhouse gas emissions from its products and operations. Standard Pacific challenged the resolution at the SEC and lost. The resolution received 33.7% of the vote. In 2009 the resolution received 15.3% of the vote (the decrease is likely the result of a private equity firm acquiring much of the company’s shares), and in 2010 the resolution received 17.4% of the vote. It has been refiled for 2011.
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Sysco Corp.
Status: Dialogue
Background: In 2010, the General Board contacted Sysco to request information about the company’s water sustainability program. The United Methodist Church has affirmed the need to conserve water and reduce water pollution. During a subsequent meeting, investors provided the company with a resource list and suggested guidelines for Sysco to incorporate into its water assessment program. It is anticipated that future meetings will take place.
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Tyson Foods
Status: Dialogue
Background: The General Board filed a shareholder resolution in 2010, after unsuccessfully attempting to engage Tyson Foods in dialogue. The resolution requested the company expand its sustainability report to include the environmental impact of its company-owned and contract animal farms. The resolution received 8.4% of the vote, a commendable number considering that the Tyson family controls 70% of the voting power.
A meeting was held in the summer of 2010. The General Board provided analysis of the company’s Sustainability Report, and the dialogue is expected to continue.
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Ultra Petroleum
Status: Resolution withdrawn
Background: In 2010, the General Board filed a shareholder resolution asking the company to appoint an independent Chairman. Ultra Petroleum filed a challenge with the SEC and began negotiations with the General Board. In exchange for a meeting with the Chairman of the Board of Directors, the resolution was withdrawn.
At the meeting, the General Board made several recommendations regarding the company’s corporate governance guidelines, including the adoption of a succession plan.
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Wal-Mart
Status: Dialogue
Background: : In 2004, 2005 and 2006, the General Board filed resolutions at Wal-Mart requesting that the company prepare a sustainability report. Sustainability reports generally disclose important information about a company often not included in annual reports or filings required by the Securities and Exchange Commission, including environmental impacts, social policies, labor and human rights issues and corporate governance guidelines. The resolutions received 14%, 16%, and 10% of the vote, respectively.
In 2007, Wal-Mart published its first sustainability report. The General Board provided feedback on the report and continued the dialogue to include a review of the 2008 report.
In 2008, the General Board brought to Wal-Mart’s attention the state-sponsored use of child labor to harvest cotton in Uzbekistan. Wal-Mart subsequently directed its suppliers to stop using cotton sourced in Uzbekistan. The company also published a press release documenting its policy on cotton sourced from Uzbekistan.
The General Board, in partnership with the Interfaith Center on Corporate Responsibility, is a member of Walmart’s stakeholder advisory board and regularly meets with the company’s executive leadership to consult on environment, social and governance matters.
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