Shareholders Show They Care

Social Investment Forum is reporting that shareholder resolutions requiring environmental, social and economic responsibility are on the rise.

• An estimated 180 social and environmental shareholder resolutions either already have come to votes or are scheduled to be decided at U.S. corporate meetings for the first half of 2006, compared with 169 for the first half of 2005.
• The number of corporate governance resolutions that have come to votes or are under consideration at U.S. corporate meetings through June 30, 2006 stands at about 400, up from 383 for the corresponding six-month period in 2005.

The Forum's analysis is based on data tracked and supplied by the Social Issues Service and the Governance Research Service of Institutional Shareholder Services (ISS), a member of the Forum.

Key trends in social and environmental resolutions identified by the Social Investment Forum include:
global warming (32 resolutions filed for January 1 to June 30 meetings, compared with 34 for the same period in 2005 -- but with 2006 proponents withdrawing 12 proposals after reaching agreements with management); toxics and pollution reduction (22 resolutions filed in 2006, compared with 12 in 2005); and calls for disclosure of political contributions/donations (43 resolutions filed in 2006, compared with 39 in 2005).

A survey conducted for the Center for Political Accountability found that 85 percent of American shareholders are worried that company political spending "puts corporations at legal risk and endangers" shareholder value.

Program Note: DCSBN will be hosting a networking and information session on the legal issues surrounding sustainability for Washington DC, Maryland and Virginia. Check this blog and our homepage for more information.

Best Practices in CSR 2006 Edition Available

In an effort to keep people informed about the latest resources to support their knowledge and implementation of corporate social responsibility and sustainable development, DCSBN is pleased to announce that the 2006 edition of PR News’ Guide to Best Practices in Corporate Social Responsibility is now available.

Billed as an "insider’s" guide to PR’s role in Corporate Social Responsibility, the book is aimed at "communications professionals at all levels" and includes informaiton on executing, maintaining and improving existing CSR initiatives.

For more information about The Guide to Best Practices in Corporate Social Responsibility, call 888-707-5814 or click here.

*DCSBN does not endorse products or services. This book has not been reviewed by DCSBN. Members of the network have contributed to it and are credited in the volume.

What Does $398 Million Say about Social Responsibility?

Proponents of social responsibility eagerly point to examples where doing good and doing well seem linked. The argument is made again and again that consumers, employees, investors and communities all prefer socially responsible companies. As Rod Tidwell would say: "show me the money!"

So what does it say when a company makes its biggest profit ever - and it's chairman recieves one of the most generous retirement packages in history - but the company has relatively low scores for environmental stewardship in an industry that also has low scores.?

ExxonMobil recently replaced Wal-Mart as the nation's most profitable business, leading the Fortune 500 list. Retiring chairman Lee Raymond is recipient of one of the most generous retirement packages in history, nearly $400 million - including pension, stock options and other perks, such as a $1 million consulting deal, two years of home security, personal security, a car and driver, and use of a corporate jet for professional purposes.

Let's Clear the Air about Clean Air

You cannot regulate morality, but what happens when regulation shows a positive impact and self-regulation seems to fail? Often the result is a sense that regulation is required to drive social change. This may be happening on Capitol Hill, where recent studies show that emissions from power plants of sulfur dioxide (SO2) and nitrogen oxides (NOx) have fallen dramatically in recent years, but carbon dioxide (CO2) emissions increased. Currently the U.S. has stringent regulations for SO2 and NOx; and relies on voluntary compliance for CO2.

Trends from 1990 to 2004
SO2 - 44%
NOx - 36%
CO2 + 27%

Last year the U.S. Senate adopted a resolution calling for mandatory emission limits. "Voluntary approaches for curbing greenhouse gas emissions are not working," states the report from GreenBiz.

If the power industry wants to pre-empt regulation (and the associated costs and burdens) it would do well to take a lesson from the cement industry. Under the leadership of the World Business Council on Sustainable Development, the cement industry has made real and aggressive efforts to reduce all emissions, including CO2.

Don't Just Read the Blog; Get Involved with DCSBN

The Washington DC Sustainable Business Nework (DCSBN) is pleased to announce our new newsletter 'Sustainable Solutions' that features:

• recent and coming events
• special offers for DCSBN members
• new members
• the latest CSR headlines
• how to get involved

Find out more about what's going on, and how you can get involved.