Company Descriptions
Activision / Blizzard
Status: The 2008 resolution received 3.2% of shareholder votes at the company’s annual meeting.
Background: In 2006, the General Board filed a resolution at Activision requesting the company to commit to a policy of board inclusiveness and to ensure that qualified women and persons from minority racial groups are considered for nomination to the board. The General Board believes a qualified board that reflects the diversity of a company's stakeholders will be more effective at understanding consumers, crafting strategy, managing employees, and adding value to the bottom line. The 2006 resolution received 5.7% of shareholder votes. Several follow-up conversations between Activision and the General Board ensued, but the company was unwilling to change its corporate policies. The proposal was re-filed in 2007 where it received the support of 10.5% of shareholders.
In December 2007 Activision merged with Blizzard Entertainment. Although the General Board re-filed the diversity resolution again in 2008, the new parent company’s majority stake reduced the “for” votes to 3.2%.
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Archer-Daniels-Midland
Status: Dialogue
Background: From 2004-2006 The General Board was involved in a dialogue with Archer-Daniels-Midland (ADM) requesting the company report, in part, on the extent that its food products are derived from or contain genetically engineered (GE) ingredients, the environmental impacts of the use of GE ingredients, and potential business risks of continued or discontinued use of GE ingredients. The United Methodist Church believes that consumers have the right to know through clear labeling the ingredients of the products they purchase and consume, particularly related to genetically engineered ingredients.
Shareholder resolutions filed during the 3-year period received approximately 7% of votes. In October 2005 ADM management and investors had a constructive meeting during which the company agreed to take suggestions under advisement. However, no decisions were made about labeling.
In 2007, the General Board filed a shareholder resolution asking Archer Daniels Midland to produce a sustainability repot. The resolution was later withdrawn when the company agreed to engage in dialogue.
The company has made substantial progress towards greater transparency, and the General Board attended its 2008 annual meeting and publicly commended the company.
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Caterpillar
Status: Dialogue
Background: In October 2005, the General Board co-filed a resolution at Caterpillar requesting the company prepare a sustainability report. Sustainability reports can 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 January 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 March, the General Board submitted extensive feedback on the draft report to Caterpillar on behalf of co-filers. Later that month, co-filers met in person with Caterpillar staff to review the draft report and to discuss our feedback. In January 2007, a draft copy of Caterpillar's second sustainability report was shared with the General Board for feedback. In February the General Board organized a conference call with the company and other faith-based investors to provide feedback on 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 where 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.
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Freeport McMoran
Status: Resolution filed
Background: The General Board has filed a shareholder resolution for the 2009 annual meeting asking Freeport McMoRan to nominate an independent director with expertise in the areas of mining and the environment. The company has long been criticized for its environmental policies and practices, and the General Board believes the nomination of a director with expertise in the environmental impact of mining will be beneficial to the company and will demonstrate a commitment to minimizing its environmental impact.
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General Motors
Status: Dialogue
Background: In December 2005, the General Board co-filed a resolution at General Motors requesting that, whenever possible, the positions of Chairman of the Board of Directors and Chief Executive Officer be held by different people. The General Board believes that corporate governance best practices include the separation of the roles of Chairman and CEO. The primary purpose of the board of directors is to provide independent oversight of management and the CEO. The board's effectiveness in this regard is compromised by the conflict of interest inherent in the combination of the two leadership positions. The resolution received 18.5% of shareholder votes.
In December 2006, the General Board co-filed a resolution for consideration at the 2007 annual meeting seeking disclosure of General Motors’ political contributions.
In an effort to encourage transparency, the General Board supports resolutions requesting companies to provide a report on their activities and financial relationships with political and/or governmental agencies. In January 2007, the General Board participated in a conference call to discuss and review General Motors’ related policy. The resolution received 14% of shareholder votes.
In 2008 the General Board provided feedback to the company on a draft of its Sustainability Report.
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Goldman Sachs
Status: Resolution filed
Background: The General Board has filed a shareholder resolution for the 2009 annual meeting asking that shareholders be given an advisory vote on executive compensation. The United Methodist Church supports “measures that would reduce the concentration of wealth in the hands of a few.” The General Board believes that executive compensation for top management should be linked to corporate financial performance and accountability for environmental, social and governance criteria to ensure corporate sustainability.
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Home Depot
Status: Resolution filed
Background: In 2007, the General Board co-filed a resolution seeking publication of a diversity report. The General Board supports resolutions requesting company management to report on efforts to establish affirmative action programs, enforce equal employment opportunity in the workplace and promote women and persons of color. The 2007 resolution received 25.6% of shareholder votes. The General Board re-filed the resolution in 2008, where it garnered 25% of the vote.
In spite of the strong shareholder support, the company still refuses to release the data. In response, the General Board has re-filed the resolution again for 2009.
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JPMorgan Chase
Status: Resolution received 7.5% of vote
Background: In 2008, the General Board filed a shareholder resolution requesting the company review its investment policies with respect to human rights. Client relationships with the Sudanese government are a particular concern. As an advocate for human rights, the General Board is especially sensitive to those regions of the globe experiencing political and civil unrest. By holding corporations accountable for the implementation of their codes of conduct in these locations, the General Board gives voice to the Church's commitment that humanity be affirmed in all places.
The 2008 resolution received 7.5% of shareholder votes.
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Kellogg
Status: Resolution withdrawn
Background: In November 2007 the General Board filed a resolution at Kellogg requesting information on the sustainability of the company’s supply chain. After meeting with the company to learn about sustainability initiatives currently underway, and following a commitment by the company to continue discussing corporate sustainability issues with the General Board and to improve reporting on those issues, the General Board agreed to withdraw the resolution. Two meetings have been held with the company to discuss progress toward the agreed upon goals. In early 2009, the company published a Sustainability Report.
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Monsanto
Status: Resolution received 13.15% of vote
Background: In August 2006 shareholders filed a resolution at Monsanto requesting that, whenever possible, the positions of Chairman of the Board of Directors and Chief Executive Officer be held by different people. The General Board believes that corporate governance best practices include the separation of the roles of Chairman and CEO. The primary purpose of the board of directors is to provide independent oversight of management and the CEO. The board's effectiveness in this regard is compromised by the conflict of interest inherent in the combination of the two leadership positions. At the January 2007 annual meeting, the resolution received 13.7% of the shareholder vote.
The General Board re-filed the resolution for the 2008 meeting, where it received 13.15% of the vote.
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Oil and Natural Gas Company (ONGC)
Status: Shares divested
Background: In October 2007, the General Board sent a letter to Oil and Natural Gas Company (ONCG), based in India, expressing concern over the situation in Sudan and requesting that the company provide information on its operations, policies and practices in countries where governments have been accused of human rights violations. The General Board’s investment manager holding ONGC shares also requested that the ONGC shareholder relations group contact the General Board. There was no response by ONGC to these requests.
As an advocate for human rights, the General Board is especially sensitive to those regions of the globe experiencing political and civil unrest. By holding corporations accountable for the implementation of their codes of conduct in these locations, the General Board gives voice to the Church's commitment that humanity be affirmed in all places.
In May, General Conference 2008 passed a resolution calling upon United Methodist investors “to prayerfully consider divestment of the personal and pension assets under their control from any company doing business with the government of Sudan.”
The General Board’s investment portfolio held shares in the ONGC which is engaged in Sudanese oil exploration and production through its foreign exploration arm, ONGC Videsh Ltd. ONGC also owns shares in several Sudanese oil-producing ventures with an interest in purchasing additional shares, and helped build a pipeline connecting a refinery in Khartoum with export terminal facilities in Port Sudan.
Directors of the General Board determined that divestment was the most appropriate action because ONGC provides no public disclosure about its business operations in Sudan, has declined requests by investors for information and has been identified as one of the companies doing business with the Sudanese government. All shares were divested.
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Pulte Homes
Status: Resolution filed
Background: For the 2007 annual meeting, the General Board filed a resolution concerning the company’s policies and practices pertaining 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. Pulte Homes successfully challenged the resolution at the Securities and Exchange Commission (SEC) and it was disqualified.
In 2008, the General Board filed a resolution asking Pulte to publish a report detailing it efforts to reduce greenhouse gas emissions from its products and operations. The resolution withstood a challenge at the SEC and received 22.9% of shareholder votes. The resolution has been re-filed for 2009.
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Sara Lee
Status: Resolution withdrawn, report published
Background: In May 2006, the General Board filed a resolution at Sara Lee Corporation requesting the company prepare a sustainability report. Sustainability reports can 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.
Sara Lee agreed to publish a sustainability report and involve the General Board in its development. The General Board met with Sara lee to receive an update on the reporting process, and later to provide feedback on the draft report. Sara Lee’s first Sustainability Report was published in 2008.
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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. The resolution has been re-filed for the 2009 annual meeting.
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Wal-Mart
Status: dialogue
Background: In 2004, 2005 and 2006, the General Board filed resolutions at Wal-Mart requesting the company prepare a sustainability report. Sustainability reports can 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 141.6%, 16.16%, and 10.2% of the vote, respectively.
In 2007, Wal-Mart published its first ever Sustainability Report. The General Board is providing feedback to the company on the report.
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