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.