Putting ethics into company balance sheets: Where's the teeth?

Published: 2004-12-30

WASHINGTON (CNS) -- For promoters of socially responsible investing, getting companies to incorporate social ethics into their balance sheets is only the beginning. Policies respecting human rights or keeping child entertainment suitable for children mean little unless enforced. So, the next step is putting teeth into policies through implementation mechanisms. To do this, faith-based groups brokering marriages between economics and ethics are keeping the pressure on companies through shareholder resolutions, dialogue, investor clout and reminders that unethical policies threaten a corporation's image. "Getting policies written is the first step. It's a vital step," said Sister Doris Gormley, consultant to the National Jesuit Committee on Investor Responsibility and a member of Sisters for Christian Community. She represented a coalition of religious organizations which helped Occidental Petroleum adopt a human rights policy. "Now the hard work for the company begins -- implementation," said Sister Gormley, who hopes to monitor compliance through continuing dialogue with Occidental.

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