Wal-Mart Focus of Actions by Faith-Based Institutional Investors
Interfaith Center (ICCR) Members File Five Shareholder-Sponsored Resolutions
NEW YORK CITY, NY///January 4, 2006///Characterizing Wal-Mart as "a company
in need of reform" Sister Patricia Wolf, executive director of the Interfaith
Center on Corporate Responsibility (ICCR) today announced the filing of five
shareholder-sponsored resolutions aimed at reforming Wal-Mart's policies and
practices. The ICCR investor coalition is a major force in bringing about advances
in corporate governance, corporate social responsibility and economic justice
through organized shareowner advocacy.
"There are fundamental socially responsible investing issues on which
ICCR focuses each year in challenging corporations to reform their policies
and practices.", stated ICCR Executive Director Sister Patricia Wolf. "Collectively,
we have numerous concerns with the Wal-Mart business model. Given the decline
in Wal-Mart's share price, we believe our concerns will be of interest to other
shareholders."
The five resolutions are:
1) "Compensation Disparity," co-lead filers are Sisters of
the Holy Names of Jesus and Mary, Washington Province and the Benedictine Sisters
of Boerne, Texas; These investors request the Wal-Mart Board undertake a study
of the total compensation packages provided to company top executives in comparison
to the lowest paid worker and to justify the disparity that is estimated at
1,000 - to - 1 (as compared to other large companies which average 431-1).
2) The "Public Health Impact" Wal-Mart has on Medicaid and State Child Health Insurance Programs in areas where it operates; lead filer the Basilian Fathers of Toronto; The resolution states that "Several recent studies by governments and academics allege that Wal-Mart employees account for a disproportionate share of government services, especially health care." It further notes that "…a confidential memo to our Board leaked to the media in October, found almost half of [Wal-Mart] Associates' [employees'] children are on public assistance or uninsured." The Board is requested to prepare a detailed report and deal with this public policy issues on the Board level.
3) "Equal Employment Opportunity," lead filer Sisters of Charity
of St. Elizabeth, NJ; The resolution focuses on encouraging a more diverse workforce
and an end to workplace discrimination. It requests the company prepare a report
including "…a chart identifying employees according to their sex and
race in each of the …major EEOC defined job categories...a summary...of
any affirmative action policies and programs…programs oriented…toward
increasing the number of mangers who are…females or minorities...how the
company publicizes its affirmative action policies…to merchandise suppliers
and service providers." The resolution states, "public disclosure
of diversity data - specifically data on the most senior positions - is an effective
incentive to develop and maintain innovative, effective programs to break the
glass ceiling barriers."
4) "Sustainability," lead filer the General Board of Pension
and Health of The United Methodist Church; The resolution focuses on the lack
of commitment of Wal-Mart in "…developing a public sustainability
report that addresses its strategies concerning economic, social, and environmental
issues and developments…" The resolution requests the Board to prepare
a Sustainability Report and make a summary available to shareholders by December
2006.
5) "Product Safety," lead filer Green Century Capital Management.
The resolution "Product Safety" requests "…the Board publish
a report evaluating Company policies and procedures for systematically minimizing
customers' exposure to toxic substances in products, including, at a minimum,
hormone disrupting chemicals, persistent bioaccumulative toxicants, carcinogens,
mutagens, and reproductive toxicants. The report should summarize the criteria
used to evaluate such chemicals, and include options for systematically identifying
toxic chemicals in stocked products, encouraging suppliers to reduce or eliminate
such chemicals and develop safer alternatives, and routinely reporting on progress…"
It further states "Wal-Mart is uniquely positioned to dramatically shift
global supply chains towards use of safer chemicals in common consumer products…"
More detailed information regarding these and dozens of other 2006 shareholder-sponsored
resolutions is available from the Interfaith Center's EthVest (sm), the comprehensive,
on-line, subscription-based, ethical investor database.
About ICCR: For 35 years the Interfaith Center on Corporate Responsibility has
combined social values with investment decisions believing that as investors
they must achieve more than an acceptable financial return. ICCR's 275 faith
based member institutions include major church denominations, foundations, religious
orders, healthcare systems and pension funds, currently, with a combined market
portfolio of more than $110 billion.
About EthVest: Available online to investors by subscription, EthVest is an ethical investor resource provided by the Interfaith Center on Corporate Responsibility (ICCR). EthVest contains details on shareholder initiatives by faith-based and socially responsible investors, including complete texts and voting outcomes for more than 2,000 shareholder-sponsored resolutions. Resolutions are retrievable by targeted company name, stock ticker, calendar year of proxy vote and topic or issue. Resolutions by ICCR member organizations and institutional investors traditionally focus on nine broad areas of social and environmental justice. Subscribers also receive periodic updates containing timely news and information on ICCR shareholder activism, including newly filed resolutions and negotiated corporate actions. For information on EthVest contact: Kenneth Cynar, Governance & Accountability Advisors Inc., Tel: 516/248-2383 Fax: 516/248-4045, Email: kcynar@accountability-central.com
CONTACT: Sister Patricia Wolf, 212-870-2294