Shareholder resolutions seen as increasing in influence

Published: 2007-11-16

WASHINGTON (CNS) -- Despite the threat that the Securities and Exchange Commission will limit the future use of shareholder resolutions, a top official of Christian Brothers Investment Services said he expects the use of such resolutions to continue and to gain support in 2008. During a Nov. 14 conference call with reporters, John Wilson, director of socially responsible marketing for New York-based Christian Brothers Investment Services, said 2007 saw "an increase in effectiveness on behalf of shareholder advocacy." Even though only one stockholder resolution actually captured a majority, he added, the minority vote in other instances was so strong that the targeted corporations adjusted their policies. Among successes Wilson cited were: Pharmaceutical giant Abbot Laboratories lowered the price of a critical AIDS drug around the world; Coca-Cola is implementing a human rights policy and monitoring its affiliates' conduct worldwide; the Dillard's department store chain invited Christian Brothers to a dialogue to discuss sustainability issues after a shareholder resolution collected 46 percent of the vote; and an ExxonMobil shareholder resolution on global warming received 31 percent of the votes cast.

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