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Resolution: Product Safety
2006 Shareholder Resolution approved by the Advisory Committee on Corporate Social Responsibility (ACCSR)
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Resolution:
Product Safety
WHEREAS:
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In February 2003, European Union Directive 2003/15/EC ("the Directive") banned the sale in Europe of cosmetics or personal care products containing any ingredients on a list of chemicals known or suspected of causing cancer, genetic mutation, or birth defects.
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In 2004, _____ announced it would remove DBP and DEHP, two chemicals banned by the Directive and currently used in some nail products, from its European products, and would try to remove them from products it sells elsewhere. _____ also indicated it would remove from its European products any other chemicals the Directive bans.
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However, _____ did not pledge to reformulate its products globally. Scores of _____ products sold in the US, for example, still contain petrolatum, isobutane or hydroquinone, chemicals the EU Directive bans as probable or possible carcinogens, mutagens, or reproductive toxins.
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_____ should have one global product safety standard. Having multiple standards may damage _____'s reputation and expose _____ to liability.
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Formulation to EU standards would elevate the safety standards of _____'s products. The US FDA, for example, does not require cosmetics manufacturers to test their products for safety. They can use any raw ingredient without approval except for color additives and a few prohibited ingredients.
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Concern about safe cosmetics is growing among consumers and _____'s competitors. Nearly fifty cosmetics companies have informed the Campaign for Safe Cosmetics, a coalition of health, consumer, and advocacy groups, that they will inventory their products for ingredients that are suspected carcinogens, mutagens, and reproductive toxins, as well as for chemicals that affect the endocrine system, accumulate in the body or persist in the environment. These companies will proactively seek safe alternatives for these chemicals, and publicly report on their progress.
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The reformulation process to comply with the Directive offers companies an opportunity to begin exploring safe alternatives to all chemicals of concern. _____ should demonstrate its commitment to the highest standards of product safety by reformulating its products worldwide to EU standards.
RESOLVED:
Shareholders request that _____ reformulate, in a reasonable
time frame and as legally permitted, all its products worldwide
to be free of chemicals banned by European Union Directive
2003/15/EC, and that the Board of Directors produce a report to
shareholders on the implementation of the reformulation plan by
November 1, 2006. The report should be prepared at reasonable
cost and omit proprietary information.
SUPPORTING STATEMENT:
Known as "the company for women," _____ deserves praise for its
global leadership in the fight against breast cancer. This
resolution seeks to protect _____'s good name by resolving any
doubts that _____ applies a higher safety standard for its
European consumers than for others. The Directive identifies the
mutagens, reproductive toxins and carcinogens-including breast
carcinogens-currently posing the greatest risks to public
health. Without a global reformulation policy, _____ risks
losing non-European customers who are concerned about cosmetic
safety. The Directive offers _____ the opportunity to respond
to growing concerns about the risks cosmetics may pose to human
health.
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