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Corporate Social Responsibility
News
7.11.2006 - 09:40am ET
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At Its Annual Meeting Shareholders, Activists Demand TIAA-CREF Accountability on Corporate Governance and Social Responsibility
(CSRwire) Governance leader TIAA-CREF has suffered several scandals over
the last few years. Now the "Corporate Governance Leader" is challenged to
follow its own corporate governance standards.
After years of pressure, TIAA-CREF agreed to become Shareholder
Activists on issues of Social Responsibility. Now it's time they live up
to their commitment. They should put reform pressure on six Industry
Leaders that consistently display egregious behavior--or divest their
stock.
"REFORM THEM OR DUMP THEM"
What: Demonstration outside TIAA-CREF corporate headquarters--and
raising of voices inside--to urge the fund to "Reform Them or Dump
Them" (Costco, Wal-Mart, Coca-Cola, Nike, Chevron, Philip
Morris/Altria, and a no-reinvestment pledge re World Bank bonds). Instead,
CREF should invest in life-promoting ventures in its socially responsible
fund and otherwise.
When: Tuesday, July 18, 8-9:30 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 policies. It will urge the fund to use its considerable
shareholder power to influence corporations involved in human rights
violations and/or public health/community/environmental degradation. It
will call for investment in community development and social venture
capital in its Social Choice Account and otherwise. (Learn more at http://www.MakeTIAA-CREFethical.org.)
The nation's largest pension fund, TIAA-CREF, serving mainly 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..." Its tag line
is "Financial Services for the Greater Good." One ad notes that its
"investing goes beyond sound portfolio management" and that it is "mindful
of its social responsibilities."
YET 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
Chevron - 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
Coca-Cola - markets nutritionally deficient products to kids at
home, tied to water shortages abroad, and is complicit in human rights
abuses, including murder, torture and kidnapping in Colombia
(TIAA-CREF divested its harmful World Bank bonds and should state
it will buy no more.)
TIAA-CREF also reneged on promises regarding community investment in
their socially responsible Social Choice Account.
While it advocates to others about good corporate governance and
supporting shareholders, its own recent history is contradictory:
It advocates strongly to others to keep CEO compensation in line.
Yet it gave its own CEO Herbert Allison a pay package way out of line for
a non-profit serving low-paid college professors and other college
personnel.
It argues strongly for the independence of trustees, yet it had to
remove two of its board members in 2004 after the SEC voiced strong
concerns about financial conflicts of interest.
In 2005 it did an insufficient background check and hired a criminal,
with a subsequent breach of security for participants and apparent
deception by TIAA-CREF on the matter (and now, in 2006, under the SARBOX
Whistleblowers act, the previous boss of the hired criminal is filing
against TIAA-CREF for having been fired as a scapegoat);
In 2006 its CFO was investigated by the SEC and DOJ for alleged
financial conspiracy (she was later indicted in connection with her
previous job).
**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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