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Corporate Social Responsibility
News
7.12.2005 ET
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CSR News from:
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Shareholders, Activists Demand TIAA-CREF Accountability On Corporate Governance And Social Responsibility Issues
(CSRwire) TIAA-CREF suffered several scandals over the last year.
Shareholders demand accountability.
Nation's Largest Pension Fund to Face Protests surrounding its Annual
Meeting, Urging Fund to Divest of Destructive Holdings, Invest in Socially
Responsible Ventures
Corporate Governance Leader Challenged To Follow Its Own Policy Statement
On Corporate Governance
What: Demonstration outside TIAA-CREF's corporate headquarters
and raising of voices inside to urge fund to divest of Costco, Wal-Mart,
Coca-Cola, Nike, Unocal, Philip Morris/Altria (and pledge no reinvestment
in World Bank bonds). Instead, CREF should invest in life-promoting
ventures.
When: Tuesday, July 19, 8-10 AM. (CREF meeting starts at 9
AM.)
Where: TIAA-CREF, 730 Third Avenue (between 45th and 46th),
Manhattan, NYC
Why: A coalition of international human rights, environmental
and corporate accountability advocacy groups will demonstrate against
TIAA-CREF's investment policies. It will urge the fund to divest of shares
in corporations involved in human rights violations; and public
health/community/environmental degradation, and instead invest in socially
responsible ventures. Make TIAA-CREF Ethical http://www.MakeTIAA-CREFethical.org
The nation's largest pension fund, TIAA-CREF, a retirement fund mainly for
educators, prides itself on being responsive to shareholders and concerned
about social responsibility. Their Policy Statement on Corporate
Governance states that "... efforts to promote good corporate citizenship
may serve to enhance a company's reputation and long term economic
performance..." And their tag line is now "Financial Services for the
Greater Good."
The reality is that TIAA-CREF holds shares in some of the most
controversial and notoriously unethical corporations:
TIAA-CREF holds shares in corporations such as
Nike and Wal-Mart -condemned for selling products produced by
overseas sweatshop labor
Wal-Mart -has bad domestic labor practices, hurts local business,
and promotes urban sprawl
Unocal - its business ventures with Burma's government help support
that brutal regime
Philip Morris/Altria - responsible for Marlboro, the #1 deadly
cigarette brand among youth
Costco - promotes police brutality and the destruction of cultural
heritage and the environment
Coke - markets nutritionally deficient products to kids at home,
tied to human rights abuses and water shortages abroad
(TIAA-CREF divested its harmful World Bank bonds and should state
it will buy no more.)
TIAA-CREF failed to follow through on its promise of April '04 that it
would address the concerns of the Social Choice for Social Change campaign
that seeks investment in community development and other positive ventures.
They talked for a year; then rejected all but one request in May, agreeing
to one.
Issues of general corporate responsibility will be raised, as well:
TIAA-CREF had to remove two of its board members in November 2004
after the SEC voiced strong concerns about their lack of independence in
financial transactions.
It suffered two scandals in 2005: inadvertently hiring a criminal and
subsequent breech of security for participants and associated apparent
deception; having its CFO investigated by the SEC and DOJ for alleged
financial conspiracy (from her previous job a few years
before).
In response to pressure, TIAA-CREF has made some changes in its investment
policies. The coalition vows to increase that pressure until the pension
fund lives up to its own self-proclaimed standards of social
responsibility.
** The US Campaign for Burma Corporate Accountability International
(formerly Infact) World Bank Bonds Boycott Press for Change
Social Choice for Social Change Canadian Committee To Combat Crimes
Against Humanity (CCCCH) Citizens Coalition (Frente Civico)
Educating for Justice National Community Reinvestment Coalition
National Congress for Community Economic Development Campaign to Stop
Killer Coke/Corporate Campaign, Inc. Campaign for a Commercial-Free
Childhood Sprawl-Busters**
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