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Resolution: Sustainability Report to Shareholders - 2004
2004 Shareholder Resolution approved by the Advisory Committee on Corporate Social Responsibility (ACCSR)
Download this resolution in a printer-friendly format (pdf)
Resolution:
Sustainability Report to Shareholders - 2004
Whereas, the global economy challenges corporations to create sustainable business relationships by participating in the sustainable development of communities in which they operate. The World Commission on Environment and Development defined sustainable development as "development which meets the needs of the present without compromising the ability of future generations to meet their own needs." (Our Common Future, 1987)
We believe the ability of corporations to continue to provide goods/services in our interdependent world depends on their acceptability to the societies where they do business. Corporate citizenship goes beyond traditional functions of creating jobs and paying taxes, to include corporate practices designed to protect human rights, worker rights, land and the environment.
According to Dow Jones Sustainability Group,
sustainability includes:
"Encouraging long lasting social well being in communities
where they operate, interacting with different stakeholders
(e.g. clients, suppliers, employees, government, local
communities and non-governmental organizations) and responding
to their specific and evolving needs thereby securing a long
term 'license to operate,' superior customer and employee
loyalty and ultimately superior financial returns." (www.sustainability-index.com;
March 2000)
We believe corporate sustainability includes a commitment to pay a sustainable living wage to employees. Workers need to have the purchasing power to meet their basic needs. A purchasing power study conducted in 15 cities in Mexico found that it takes four to five Mexican minimum wages to support a family of four (Making the Invisible Visible, Center for Reflection Education and Action, June 2001). We believe paying sustainable wages contributes to community development and employee loyalty to the company.
The sustainability of corporations, we believe, is connected to the economic sustainability of their workers and the communities where corporations operate and sell products. Effective corporate policies can benefit both communities and corporations.
Concerned investors evaluate companies on their financial, environmental and social performance --- the triple bottom line. Some companies have published sustainability reports and are taking a long-term approach to creating shareholder value through embracing opportunities and managing risks derived from economic, environmental and social developments. We believe sustainability reporting should be included in our company's annual report.
The number of companies publishing sustainability reports is increasing. In 2000, there were about 25 global sustainability reports. By September 2002, that number had more than doubled to about 60 reports (“Trends in Reporting;” NextStepConsulting, Nov. 13, 2002; CorporateRegister.com).
As trust in multinational corporations hits new lows, sustainability reporting potentially offers real opportunities for companies to rebuild that trust, according to the latest report by Sustainability and the United Nations Environment Programme (“Trust Us: The 2002 Global Reporters Survey of Corporate Sustainability Reporting,” November 2002).
Resolved: shareholders request the Board of Directors to prepare at reasonable expense a sustainability report. A summary of the report should be provided to shareholders by October 2004.
Supporting Statement
We believe the report should include:
1. The company's operating definition of sustainability.
2. A review of current company policies and practices related
to social, environmental and economic sustainability.
3. A summary of long-term plans to integrate sustainability
objectives throughout company operations.
Download this resolution in a printer-friendly format (pdf)
