Human Rights Standards in Indonesia

WHEREAS, we believe that transnational corporations operating in countries with repressive governments, ethnic conflict, weak rule of law, endemic corruption, or poor labor and environmental standards face serious risks to their reputation and share value if they are seen to be responsible for, or complicit in, human rights violations; and,

WHEREAS, Freeport McMoRan has extensive operations in West Papua in Indonesia; and,

WHEREAS, there have been numerous reports of human rights abuses against the indigenous population by the Indonesian military in connection with security operations conducted on behalf of Freeport McMoRan; and,

WHEREAS, it has been reported that Freeport McMoRan has employed security personnel who have been responsible for human rights violations; and

WHEREAS, company personnel have been among the victims of violent attack;

THEREFORE, BE IT RESOLVED that the shareholders request the Board of Directors to of Freeport McMoran to amend its Social and Human Rights Policy to (1) protect employees who report human rights violations; (2) establish internal reporting procedures that will ensure this protection; and (3) inform all employees about these procedures on a regular basis. It is also requested that the company establish a system of independent monitoring of its compliance to its Social and Human Rights Policy, and that the company report credible accusations of human rights violations to the appropriate government authorities, as well as to local and international human rights organizations.

BE IT FURTHER RESOLVED that the shareholders request the Board of Directors to report to shareholders on the implementation of its Social and Human Rights Policy in its overseas operations no later than November 1, 2003. This report should include information concerning the human rights impacts of the company's on-going security relationship with the Indonesian military. The report should be prepared at reasonable cost, and contain no proprietary information.

Supporting Statement
The New York City Employees Retirement System and the New York City Teachers Retirement System believe that significant commercial advantages can accrue to our company by the rigorous implementation of human rights policies based upon the Universal Declaration of Human Rights. These include: enhanced corporate reputation, improved employee recruitment and retention, improved community and stakeholder relations, and a reduced risk of adverse publicity, divestment campaigns, and lawsuits.