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Corporate Social Responsibility
News
5.23.2007 - 09:30am ET
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Target is Batting Zero When It Comes to Shareholder Engagement This Proxy Season
(CSRwire) May 23, 2007- Institutional and faith-based shareholders have tried to
engage Target on a number of shareholder issues during this proxy season
including the phase out of PVC-packaging and healthcare reform.
"Target is batting zero this proxy season when it comes to shareholder
engagement," states Lauren Compere, Director of Shareholder Advocacy of
Boston Common Asset Management. "We have been involved with both
shareholder issues and we are very surprised that Target has not come to
the table to address these critical issues which have bottom-line and
reputational impacts on Target’s brand." Shareholders are sending a
representative to Target’s May 24th annual general meeting to give voice
to these issues.
On the issue of PVC packaging phase-out, Target has been the focus of a
consumer boycott for nearly a year with over 200 demonstrations planned
for the day of the annual meeting. Shareholders began a dialogue with
senior management nearly 8 months ago asking the company to review health
concerns related to PVC, as well as product alternatives and procurement
options.
A group of Target shareholders representing members of the Interfaith
Center on Corporate Responsibility - a coalition of nearly 300
institutional investors with more than $150 billion in assets, and members
of the Investor Environmental Health Network – a coalition of over 20
institutional investors with over $22 billion in combined assets,
contacted Target in September 2006 with their concerns regarding the
company's products and packaging made out of PVC. "Target is clearly an
industry laggard on this issue. Its major competitor Wal-Mart, and
companies all around the world including Ikea, Nike and Sony have made
commitments to phase out PVC in products or packaging" states Michael
Passoff, Associate Director of As You Sow. "Despite consumer and investor
concern Target can still not answer basic questions such as what is the
company's commitment to exploring alternatives to PVC? What is the
process, who is responsible, what is the timeframe?"
On the issue of healthcare reform, Target has been even more unresponsive
to investor concerns and the company challenged a shareholder proposal
filed in December with the SEC. "Target prides itself as being on target
when it comes to knowing what its customers want. However, Interfaith
Center on Corporate Responsibility shareholders are concerned that the
company is missing the mark when it comes to addressing the health care
crisis," says Sister Judy Byron who coordinates the Northwest Coalition
for Responsible Investment and represents the Dominican Sisters of Adrian
Michigan. "While company after company has joined coalitions to work on
health care reform and universal health care policy, Target remains
unengaged and is unresponsive to our request to dialogue about how the
company is positioning itself to address this critical public policy and
business issue."
There are a growing number of responsible investors who recognize that
medical benefits are a critical issue for U.S. companies to address.
"Because this issue directly impacts the profitability as well as the
health and productivity of its employees, we believe that Target should be
involved in efforts designed to address the issue of universal health
care." says Lauren Compere, Director of Shareholder Advocacy at Boston
Common Asset Management.
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