At Its Annual Meeting Shareholders, Activists Demand TIAA-CREF Accountability on Corporate Governance and Social Responsibility

Published 07-11-06

Submitted by Make TIAA-CREF Ethical Coalition

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**

At Its Annual Meeting Shareholders, Activists Demand TIAA-CREF Accountability on Corporate Governance and Social Responsibility

At Its Annual Meeting Shareholders, Activists Demand TIAA-CREF Accountability on Corporate Governance and Social Responsibility

Make TIAA-CREF Ethical Coalition

Make TIAA-CREF Ethical Coalition

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