Jesuit-led shareholder movement advocates Cheveron to develop and implement Human Rights Policy
The Jesuits, organizational members of AFJN, recently
introduced a shareholder movement that received a strong 24% vote at Chevron’s
annual stockholder meeting. Gas and oil companies have recently come under a
lot of pressure for their human rights violations. This Jesuit-led movement has
been working to convince Chevron to develop a comprehensive and transparent
human rights policy. While Chevron has passed some human rights initiatives,
this movement of shareholders urges the company to create a more detailed
policy that is integrated into all aspects of the company. This movement also
acknowledges the need to make more than a humanitarian argument for Chevron to
institute a policy change; therefore, it asserts that the implementation of
better human rights standards by Chevron would also be a smart business
decision. It would “address threats to shareholder
value before they arise.” As a result of receiving 24% of the vote on their
initiative, the religious investment community expects to see the establishment
of a comprehensive human rights policy by Chevron. The company is heavily
involved in crude oil production in
To read the full press release from the Jesuits
FOR IMMEDIATE RELEASE Contact: Anna Bradley May 28, 2008 (301) 588-2181
Jesuit-led
shareholder movement advocates Chevron
to develop and implement Human Rights
Policy
SAN RAMON, CA
– The Jesuit led HUMAN RIGHTS resolution
received a strong 24% vote at Chevron’s annual stockholder meeting.
For the past four years,
Jesuits and religious investors have engaged Chevron Corporation (CVX) on the
need to develop a comprehensive, transparent and verifiable human rights policy
to deploy throughout the 180 countries where they operate. The National Jesuit
Committee for Investment Responsibility (NJCIR) with the support of the US and
English Canada Jesuit Provincials, have focused on Human Rights as a core area
of shareholder advocacy. This issue coincides closely to Jesuit apostolic
concerns regarding the marginalization of Africa,
the rights of indigenous people, economic justice and conflict & violence.
Led by the Wisconsin Province,
this growing movement with Chevron now includes 30 institutional investors
including every Jesuit province mentioned above, CreightonUniversity, University
of San Francisco and Gesu Parish (Milwaukee). In addition,
many other religious congregations and two Catholic healthcare networks have
filed their support. Along with Chevron, Jesuit provinces are also leading
corporate dialogues with Monsanto (Missouri
Province), Bristol Myers Squibb (New York Province),
Occidental Petroleum (California Province) and OM Group (Detroit Province).
Chevron is the only Jesuit-led resolution that went to shareholder vote this
year.
Proponents appreciated the
opportunity to interact with Chairman David O’Reilly and other Chevron board
members before the meeting and also noted Mr. O’Reilly’s signal that Chevron is
committed to the human rights dialogue with shareholders.
The shareholder coalition acknowledges
some hopeful Chevron human rights initiatives over the past year, such as additional
training, development efforts in the Niger Delta and the inclusion of a human
rights statement in the Business Code of Conduct. However, Wisconsin Provincial
Tom Krettek, S.J. maintains, “We believe the Company’s various human rights
activities would achieve greater impact as a comprehensive policy with specific
objectives, time frames, management accountability, performance metrics,
guidelines, evaluation and reporting procedures for operating in high-risk
environments.”
In her remarks at the annual
meeting, Jesuit consultant for Socially Responsible Investing, Ms. Anna Bradley,
referenced the work of UN special representative on Human Rights and Transnational
Corporations, Dr. John Ruggie, “Companies need to adopt a human rights policy.
Broad aspirational language
may be used to describe respect for human rights, but more detailed guidance in
specific fundamental areas is necessary to give those commitments
meaning.”
Speaking in support of the Jesuit
Human Rights resolution at the annual meeting, Fr. John P. Fitzgibbons, S.J. (University
of San Francisco – USF – Vice President for Administration and Dean of the
College of Professional Studies) referenced a recent USF law school symposium The Future of Corporate Accountability and
Oversight which included panelists from extractive industries, investors
and advocates from the crossroads of business and human rights. Fr. Fitzgibbons noted that the sustained and
sizeable support for the resolution demonstrates that “the investment community
is awakened to human rights and anticipates action and leadership from the
board.”
While religious investors are
clearly motivated by the humanitarian concerns, they must make a convincing
fiduciary case to implement policy change on the corporate level. To this end,
the resolution again received the support of two of the major proxy advisory services, Institutional Shareholder Services and Proxy
Governance. Jesuit Conference Policy Director John Kleiderer adds, “This is not only the right thing to do, but it’s smart
business. A human rights policy will address threats to shareholder value
before they arise.” Furthermore, the list of co-filers has steadily
grown over the years.
The energy sector is under
mounting scrutiny for human rights practices. Increasingly, oi and gas
resources are located in conflictive, repressive and deprived locations which
can make operating environments more volatile. Only two weeks ago, a consumer
campaign was launched against the French oil and gas company TOTAL, referencing
human rights abuses, revenue transparency concerns and social-environmental
impacts.
The coalition also maintains
that the establishment of a Human Rights policy will improve Chevron’s social
license with host communities and position the company as partner of choice for
all stakeholders.
John Sealey
(Provincial Assistant for Social and International
Ministries, Wisconsin
province) added that Jesuits and co-filers will continue to press the company.
“This effort is simultaneously in Chevron’s long-term interest as well the host
communities who shoulder the costs but rarely realize the rewards of petroleum
wealth. We are particularly grateful for the support of so many religious
investors who bring such insight and on-the-ground perspective to our
conversations with the company.”
NJCIR chair Fr.
Mark Hallinan, S.J. (Provincial Assistant for Social Ministries, New Yorkoffers
a vision for the work ahead,
“We hope that Chevron will work with us to transform their current human
rights statement into a policy that will be fully integrated into all company
operations.”
Province)
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