SOCIAL TOPICS (Archive): INTERNATIONAL SOCIALLY RESPONSIVE INVESTING 

Published, Fall 2002

Overseas, where filing proxy resolutions is often not practical, Walden continues to find opportunities to express our clients’ concerns via representation at the annual general meetings (AGM) of stockholders. Walden spoke at the AGMs of J. Sainsbury and Pinault-Printempt-Redoute SA (PPR), after stakeholders asked for Walden’s help to initiate dialogue with them regarding their U.S. operations.

At the May meeting of French conglomerate PPR, Walden questioned management about reports of serious anti-union activities at its Brylane distribution facilities in Indiana. These allegations are in contrast to PPR’s reputation for fair labor practices in France and its unionized Massachusetts warehouse. We encouraged PPR to meet with the union (UNITE) and resolve the issues. Walden also called for PPR to use independent monitoring of its overseas vendors. More recently Walden participated in an investor forum on PPR organized by the AFL-CIO. In July PPR responded that the allegations against it were unsubstantiated by government agencies and that its Brylane management is willing to meet with UNITE.

At Sainsbury’s July AGM, Walden encouraged the company to meet with Greenpeace and other U.S. stakeholders on the issue of genetically engineered foods. Sainsbury, a leading UK supermarket retailer, owns Shaw’s Supermarkets in the northeastern U.S. Shaw’s has been a target of a consumer campaign asking the supermarket to remove genetically engineered ingredients from its private label foods. Sainsbury in 1999 announced a similar policy for its UK operations but has insisted that the vast majority of its U.S. customers are unconcerned about the issue.

For several years Walden has been part of a leadership team of investors putting pressure on BP over environmental issues including drilling in the Arctic National Wilderness Refuge (ANWR). Walden has participated in two shareholder resolutions at BP. Soon after the 2002 BP AGM and the congressional vote this spring against opening ANWR, Walden urged BP to meet to discuss outstanding issues in depth. The result was a “stakeholder meeting” held in New York City with four BP staff and 20 stakeholder groups including investors, foundations, environmentalists, and human rights organizations.

Walden’s Tim Smith co-chaired the meeting on behalf of the stakeholders. On the agenda were the environment, human rights, corporate governance, and transparent reporting. The conversation was constructive and detailed. Walden and its environmental allies urged BP to withdraw from Arctic Power, the industry lobbying group for drilling in ANWR, and to state publicly that it has no intention to open the refuge to future drilling. The participants agreed that the issues were heard and insight gained into BP’s policies, decision making-processes, and challenges. We agreed to future meetings.

In a July meeting attended by Walden, adidas-Salomon AG (Adidas) presented its second corporate responsibility report, a comprehensive and detailed look at the company’s policies and programs on labor standards and practices. Walden approved Adidas for most international portfolios after it made significant progress in addressing child labor and sweatshop problems that plague the apparel industry. Adidas is involved in independent monitoring of its vendor operations to ensure code compliance and has started developing case studies that evaluate the issue of living wages in certain localities. Walden and its colleagues pressed Adidas to be more transparent. –S.Heim