Corporate America, a few billionaires aside, is staying noticeably quiet with just days to go until the presidential election that’s divided the nation sharply.
The investor-backed Interfaith Center on Corporate Responsibility (ICCR) has called on 200 CEOs to support democratic institutions including free and fair elections and a peaceful transfer of power ahead of the US presidential election. The CEOs targeted are all part of the Business Roundtable (BRT) – a Washington-based lobbyist association representing the chief executives of some of the largest US companies. In the letter, ICCR investor members raised concerns that a destabilised democracy leads to deteriorated economic conditions, creating risks to the public and the economy and hampering the long-term value of investments.
The letter, sent to Business Roundtable executives, urged them to show support of “fair elections and the peaceful transfer of power” prior to the U.S. general election.
Companies should give their workers paid time off to vote in the US presidential election next month, investors that advocate on environmental, social, and governance issues told an influential business group.
NEW YORK, NY, WEDNESDAY, OCTOBER 16, 2024 – The Interfaith Center on Corporate Responsibility (ICCR) today announced they had sent a letter on Friday, October 11th to over 200 CEOs who are members of the Business Roundtable asking them to voice their support for democratic institutions including free and fair elections and the peaceful transfer of power in advance of the national election on November 5th.
As investors, ICCR members are concerned that a destabilized democracy leads to deteriorated economic conditions which create risks to the public and the economy and hamper the long-term value of investments.
Said Josh Zinner, ICCR’s CEO, “Fair elections and a strong rule of law are essential conditions for a flourishing democracy and a stable economy. As businesses participate in our politics via lobbying and political spending, we encourage them to responsibly use their voice and influence to support voting rights, free and fair elections, and a peaceful transfer of power.”
The threat of political violence this election season looms large and is being further fueled by misinformation campaigns and AI “deepfakes” from parties both within and outside the U.S. seeking to pre-emptively delegitimize the election outcome and to sow doubt about the fairness of our elections.
Said Rob Fohr, ICCR’s Board Chair, “As investors, we are concerned about the destabilizing social and economic effects of election misinformation, particularly given the advent of AI, and any restrictions on citizens’ legitimate right to vote. Upholding the rule of law and the right to vote in free and fair elections should be a priority for everyone, including companies and their stakeholders.”
As it did four years ago, ICCR urges the business community to issue public statements and encourage actions in support of democratic norms, including:
- Support for free and fair elections including communications to the public and constituents underscoring the importance of voting, along with the provision of voter education resources and the facilitation of voting by employees through paid time off on election day, November 5;
- A call for a thorough and complete counting of all ballots whether via mail-in, absentee, or in-person voting, along with a caution to both legislators and the media to delay the announcement of a winner until all votes are fully counted;
- A call for all states to ensure a fair election by adopting policies and procedures that promote the right of citizens to vote, including lowering barriers to voter registration, increasing opportunities for early voting, and expanding the number and hours of polling places;
- A condemnation of any tactics that could be construed as voter intimidation and support for measures that will ensure voter safety;
- Support for the peaceful transfer of power. Endorsement of this principle is critical for the protection of our democracy;
- Ensure that political donations and lobbying activities support the above.
ICCR commends the statement released on Tuesday afternoon by BRT’s CEO Joshua Bolten in which he stated, “Voting is a fundamental right of American citizens. The strength of our nation’s democracy and the stability of America’s economy depend on free and fair elections.”
Proactive statements from the individual members of the BRT are urged to help underscore business support for these democratic norms.
Included in the letter are several resources and strategies to help companies take a proactive, principled approach to address enterprise and societal risks in the upcoming election.
“Companies political spending can create serious reputational risk if that election spending is perceived as supporting barriers to voting or to the democratic transfer of power,” said Timothy Smith, ICCR’s Senior Policy Advisor. “We are pleased to include specific tools in our letter to help BRT companies better navigate these risks and thereby model best practices for their peers.”
CONTACT:
Susana McDermott
Director of Communications
Interfaith Center on Corporate Responsibility (ICCR)
201-417-9060 (mobile)
smcdermott@iccr.org
About the Interfaith Center on Corporate Responsibility (ICCR)
The Interfaith Center on Corporate Responsibility (ICCR) is a broad coalition of more than 300 institutional investors collectively representing over $4 trillion in invested capital. ICCR members, a cross-section of faith-based investors, asset managers, pension funds, foundations, and other long-term institutional investors, have over 50 years of experience engaging with companies on environmental, social, and governance (“ESG”) issues that are critical to long-term value creation. ICCR members engage hundreds of corporations annually in an effort to foster greater corporate accountability. Visit our website www.iccr.org and follow us on Twitter/X (@iccronline), LinkedIn, and Facebook.
Thank you to our many friends, partners, sponsors and colleagues for joining us on September 19, 2024 in New York City at Riverside Church for our event Navigating Troubled Waters! It was great to have the time to reconnect and to consider how corporations can help ensure that their political activities serve to reinforce a strong, vibrant democracy.
Enormous thanks as well to our moderator Errol Louis of Spectrum News NY1 and our panelists, Antonio Fernandez of FirstEnergy, Peggy Foran of Prudential Financial, and Iain Levine of Meta, who engaged us in a provocative and thoughtful discussion.
And, once again, our heartfelt congratulations to Pat Zerega, 2024’s Legacy Award recipient, for her nearly five decades of shareholder advocacy on behalf of people and the planet. You can view the event journal here.
Below are a few scenes from the event:
We are pleased to share this year’s edition of Catalyzing Corporate Change, our impact report on the outcomes of the 2024 proxy season.
In 2024, our members continued to press their portfolio companies for changes in policies and practices that would mitigate harmful environmental and social impacts. With nearly 400 shareholder proposals filed on a range of issues, we’re excited to share with you some highlights from the 2024 proxy season.
Below is a preview of what you’ll read in this year’s edition of Catalyzing Corporate Change:
2024 Resolutions By Issue
ICCR members secured 85 withdrawal agreements from companies in the 2024 proxy season.
2024 Corporate Commitments By Issue
Proposals receiving over 20% shareholder support are viewed by proxy advisor Glass Lewis as meriting a response from the Board. 109 shareholder proposals garnered over 20% shareholder support this proxy season.
Percent of Proposals Going to a Vote That Achieved Over 20% of the Vote
For a complete look at ICCR member successes during the 2024 proxy season, we invite you to download Catalyzing Corporate Change 2024 using the link below.
Corporations play an important role in supporting the resilient and vibrant democracy needed to sustain healthy civic engagement, accountable governance, and a stable economy where business can thrive. However, in today’s politically charged landscape, corporations often face significant challenges navigating their support for democratic values without appearing partisan or becoming entangled in controversy. In the lead-up to a pivotal national election, we are convening a conversation about how corporations can best exemplify good corporate citizenship without furthering the divisiveness of our national discourse. Join us on the afternoon of September 19th at The Riverside Church in NYC for a rich discussion with corporate leaders who will discuss how their organizations are navigating these challenges, followed by a reception with friends and allies, including cocktails and a light dinner. Register to join us here.
WHEN: Thursday, September 19, 2024. Doors open at 4:30 pm and panel discussion begins at 5:30 pm.
WHERE: The Riverside Church, 490 Riverside Drive (between 120th and 122nd Streets) New York, NY 10027
TICKETS:
- ICCR Members: $150
- General Admissions: $300
We look forward to seeing you!
To learn about sponsorship opportunities, please contact: kcheseborough@iccr.org
Resolutions related to lobbying and political spending have so far received the most support of socially-oriented proposals this proxy season.
Amazon is one of the largest companies in the world by market cap and the second-largest employer in the U.S. Over the past several years, shareholders, including ICCR members, have been pressing the company to implement policies that will mitigate the risks of any adverse environmental and social impacts from both its direct operations and via its business relationships and vast and diverse global supply chain.
Although Amazon has been one of the top recipients of shareholder proposals for several years, in the majority of instances and to the frustration of investors, the company has remained reticent to engage with shareholders about their concerns and consistently opposes all ESG-related proposals submitted for its proxy.
Amazon’s annual meeting is on Wednesday, May 22 at 9 am Pacific and there are multiple proposals raising serious ESG concerns on the proxy. Details regarding these proposals including contact information for the proponents should you wish to learn more about them, can be found at below
Item 6 on the proxy. Proposal: Customer Due Diligence. Lead Proponent: American Baptist Home Mission Society. Read the exempt solicitation. For more information, contact Aaron Acosta at: aacosta at iasj.org
VIDEO: Statement of support from Laith Abad, software engineer at Amazon Games
“We focus on the material business implications of recent events of human rights risks in light of credible and legitimate international human rights standards, civil rights laws, and United Nations Guiding Principles on Business and Human Rights, irrespective of the players involved. It’s high time Amazon addresses investor concerns head-on. Neglecting the risks of technology misuse by various state actors, including police departments, federal agencies, and foreign entities, constitutes a breach of corporate and fiduciary responsibility for both Amazon and its shareholders.”
— Gina Haas, Director of Investments of the American Baptist Home Mission Societies (ABHMS)
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Item 7 on the proxy. Proposal: Lobbying Expenditures Disclosure. Lead Proponent: The Province of St. Joseph of the Capuchin Order Corporate Responsibility Office. For more information, contact Br. Robert Wotypka at: rwotypka at cskdetroit.org
AUDIO: Investor statement from Br Robert Wotypka of the Province of St. Joseph
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Item 8 on the proxy. Proposal: Gender and Racial Pay Gap. Lead Proponent: Stanley Monroe and Laurie Carson, represented by Arjuna Capital. For more information, contact Julia Cedarholm at: juliac at arjuna-capital.com
AUDIO: Investor statement from Joan Morris, a worker at the Amazon ATL6 sortation center in Atlanta, GA
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Item 11 on the proxy. Proposal: Report on Packaging Materials. Lead Proponent: PCR Children’s TR FBO Ellen, represented by As You Sow. For more information, contact Conrad MacKerron at: mack at asyousow.org
AUDIO: Investor statement from Conrad MacKerron, Senior Vice President of As You Sow
“Amazon’s non-recyclable plastic mailers contribute significantly to plastic pollution. It lags competitors Walmart and Target by not committing to make all packaging recyclable by a set date, and by not setting a plastic use reduction goal. Reducing Amazon’s plastic packaging and making it recyclable are necessary steps to combat the plastic pollution crisis. Our Company is overdue on taking action on this important issue.”
–Conrad MacKerron, Senior Vice President, As You Sow
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Item 12 on the proxy. Proposal: Freedom of Association. Lead Proponent: Catherine Donnelly Foundation, represented by the Shareholder Association for Research & Education (SHARE). For more information, contact Sarah Couturier-Tanoh at: scouturier-tanoh at share.ca
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Item 13 on the proxy. Proposal: Alternative Emissions Reporting/Scope 3 Emissions. Lead Proponents: Green Century Capital Management and Longview Largecap 500 Index Fund. For more information, contact Annie Sanders at: asanders at greencentury.com
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Item 14 on the proxy. Proposal: Rekognition. Lead Proponent: John Harrington. For more information, contact Brianna Harrington at: brianna at harringtoninvestments.com
“Our concerns still remain about the potential human and civil rights risks Amazon’s facial recognition technology “Rekognition” poses, since the company has refused our request to commission a truly independent, third-party assessment. This marks our sixth year introducing the resolution, and we hope an increase in shareholder support will push Amazon to finally take the necessary action.”
— Brianna Harrington, Harrington Investments
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Item 16 on the proxy. Proposal: Board Committee on Artificial Intelligence. Lead Proponent: AFL-CIO Equity Index Funds, represented by Segal Marco Advisors. For more information, contact Brandon Rees at: brees at aflcio.org
AUDIO: Investor statement from Isaiah Thomas of the Retail, Wholesale and Department Store Union (RWDSU)
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Item 17 on the proxy. Proposal: Warehouse Working Conditions. Lead Proponent: Thomas Dadashi Tazehozi, represented by Tulipshare Capital LLC. For more information, contact Constance Ricketts at: constance@tulipshare.com
AUDIO: Statement of support from Elvis Gallardo who works at an Amazon delivery station in the Bronx
AUDIO: Investor statement from Constance Ricketts, Director of Stewardship & Engagement at Tulipshare
“Tulipshare’s Proposal 17 – requesting an independent audit of the working conditions and treatment that Amazon workers face – provides a necessary step to resolving the company’s ongoing injury crisis. Amazon’s oppressive surveillance and demanding quotas have led to inordinately high turnover rates, highlighting systemic issues in job design and safety practices and resulting in an unsustainable business model. In 2023 alone, there were 38,348 recordable injuries at Amazon facilities; and the vast majority (94% or 36,170) of those were serious light duty or lost time injuries, meaning workers were hurt so badly that they were either unable to perform their regular job functions (light duty) or forced to miss work entirely (lost time). An independent audit will ensure transparency, compliance with regulations, and better worker safety. Shareholders have the opportunity to support Proposal 17 in an effort to promote accountability and responsibility while ensuring the long-term success of Amazon.”
— Constance Ricketts, Director of Stewardship & Engagement at Tulipshare