New York City Council, Committee on Consumer Affairs
Public Hearing on Violent Video Games
Chairperson Philip Reed
Testimony by Gary Brouse, Director
Corporate Governance and Militarism and Violence in Society
212-870-2316, gbrouse@iccr.org
Good afternoon, I'm Gary Brouse from the Interfaith Center
on Corporate Responsibility. We are shareholder advocates
for corporate social responsibility and we support the resolution
before the New York City Council for cautions on violent games.
ICCR is a coalition of 280 institutional investment organizations
with a combined portfolio of $120 billion. We vote our proxies
in support of public welfare issues. I primarily focus on
corporate governance----that is how a company is directed
by its CEO and board of directors. ICCR's aim is to establish
a chain of corporate accountability to shareholders and stakeholders
alike.
As institutional investors our members have come to expect
a certain level of accountability from companies we invest
in, as well as their suppliers. Last year we initiated inquiries
into organizations and companies involved in the video and
computer game industry. We have been making shareholder inquiries
in the entertainment inactive industry and the Entertainment
Software Rating Board system attempting to establish that
chain of corporate accountability on the inappropriate development,
production and marketing of violent video games.
Video gaming wields great power and influence. The entertainment
interactive industry operates now essentially without legislative
controls or regulatory guidelines. The only standard this
industry has been using is "will it sell." Our shareholders
are discovering after dialoguing with companies in the video
game industry a "pass the buck" mentality exists.
One company may produce a game component but not sell the
game. Another company licenses games but does not design the
games. Others say we only market the games but do not develop
them. They all claim little or no responsibility for violent
video games that are sold to children. Our attempt to find
accountability in the video game industry and which CEO to
hold accountable is proving to be a complex task.
The retailer Best Buy told us they don't use the ESRB rating
system and has, "no official age requirements or restrictions."
Best Buy does not require ID or proof of age but if a parent
objects to a child's game purchase, "under most circumstances,
our stores are empowered to make exceptions to our return/exchange
policy."
Mattel reported to us -they don't "develop or published
computer or video games," however they, "license
to third parties certain rights to develop and publish such
games."
Toys "R" Us reported they …"Do not sell
adult games" but they do ask for ID on "Mature-rated
games"
Blockbuster has a policy of "one time parental signed
consent a child can rent or buy any game or video.
Target responded to shareholders by stating it, "relies
on the ESRB to review content and rate games." When Target
corporate executives viewed a tape of violent video game play
they reported shock and offense at the violence but yet they
have not pulled the games from their retail stores.
Nintendo said video games are..."akin to the publishing
industry… tastes span a wide range: horror novels, historical,
biographies, romance novels, and spy novels."
None of the corporate representatives we have contacted were
aware of the New York City Council investigation and every
one of them failed to protect children from purchasing these
games.
The video gaming industry has been growing rapidly without
independent checks or balances. Our shareholder members' goal
is to establish some transparency and accountability in this
industry. Shareholders, parents, and the public must be allowed
to see corporate operations and policies to ultimately hold
video gaming companies accountable to society.
Those of us concerned for our children's safety in the matter
of violent video games must collectively insist upon accountability
from the entertainment inactive industry and the ESRB then
assign responsibility. Taking a close up shareholder look
and talking directly to corporate executives at these companies
which design produce, license, manufacturer, and retail video
games has revealed common problem areas:
Firstly, the ESRB is linked to violent video game producers.
They are not an independent disinterested party evaluating
video games without prejudice.
Second, video games are full of race and gender issues with
scantily clad female victims and race prejudice driven targeting.
Third, addressing the problem of violent video games once
they have reached the retail level is not an effective method
for eradicating the damage these games are inflicting upon
society.
Fourth, The societal costs from these games is a burden which
the game producing companies should bear. Educating and protecting
the public from violent video games is a growing expense.
Finally, new standards must be set for public welfare to
protect children from the Entertainment Inactive Industry
beyond the currently used "will it sell."
Again we support the resolutions before the New York City
Council and we thank the council for taking the initiative
in requiring some corporate accountability and public awareness
of violent video and computer games.
