Memorandum: Stockholder Resolutions, Press Conference
Diocesan Press Service. February 10, 1972 [72010]
MEMORANDUM
TO: All Bishops and Executive Council Members
FROM: The Rev. Everett W. Francis, Public Affairs Officer
DATE: February 10, 1972
SUBJECT: Stockholder Resolutions, Press Conference
Enclosed please find a press statement on stockholder resolutions filed with a number of U.S. corporations doing business in the Republic of South Africa and Angola. The Presiding Bishop will read the statement at a press conference on Tuesday, February 15th; he will be joined by representatives of the American Baptist Convention, the United Church of Christ, and the United Presbyterian Church.
The companies involved are:
International Business Machines - Episcopal Church
General Motors - Episcopal Church
Goodyear Tire & Rubber - American Baptist Convention- Board of Education
Gulf Oil - United Church of Christ-Council for Christian Social Action (on Angola)
Mobil Oil - United Church of Christ-Board of world Ministries
The most recent authority for the Executive Council's participation dates from the September 1971 meeting which authorized filing of stockholder resolutions with "companies which practice discrimination" in southern Africa.
The resolutions which have been filed simply call for the corporate to report to their stockholders the history of their involvement is southern Africa, information on their relations with workers, and relations with the governments there. The companies claim that th1in presence in Africa contributes to progressive social change and hay improved the lives of the Black and Colored workers. The request,
Draft of Statement for delivery at a press conference, 10 a.m., February 15, 1972, Overseas Press Club, N.Y.C. (as of Thursday, February 10, 1972)
STATEMENT BY
The Rt. Rev. John E. Hines
Presiding Bishop, The Episcopal Church
in behalf of the Church Project on U.S. Investments in Southern Africa (a cooperative venture of boards and/or agencies of the United Church of Christ, the United Presbyterian Church in the U.S.A., The Episcopal Church, the American Baptist Convention and the United Methodist Church).
The problem of racism and colonialism in southern Africa has long been a matter of deep concern to churches around the world.
The crisis in southern Africa involves the repression, deprivation and dehumanization of 36 million Africans and Asians by five million whites who have resisted every effort by the "non-white" majority and the United Nations to bring freedom and self-determination to the people of this region.
It is because we advocate self-determination, justice and human development for all Africans and oppose colonialism, racism and repression that we must give special attention to the international operations in southern Africa of companies in which we invest. We must do so in order to determine whether or not these corporations are seeking to alleviate the effects of apartheid in southern Africa and whether or not their presence in southern Africa serves to preserve and strengthen the status quo there.
We come to this concern with the conviction that there is no moral defense for a philosophy and policy of racism or colonialism. We wish to make clear that racism does not exist in South Africa alone. In South Africa, however, racism is embodied in the law as an official policy of white supremacy.
We realize that when American corporations operate in foreign countries, they assume a number of obligations.
Nevertheless, these corporations also represent the United States. Indeed, the total American system symbolically participates in the lives of various countries through the importance of American industry and commerce.
The income from our investments helps to support the churches world-wide mission. However, our investment policies must be seen as a part of that mission. Church investment policy involves theological considerations as well as economic considerations.
It is therefore appropriate that the church's determination of how social problems should be resolved should guide church institutions in reviewing their investment policies.
RESOLUTION
WHEREAS some stockholders believe from the information now publicly available that United States corporations should no longer conduct business in the Republic of South Africa,
WHEREAS specific information is vital for stockholders to make an informed decision about this Corporation's involvement in South Africa,
WHEREAS it is the right of a stockholder to have access to non-competitive information about the Corporation's business,
THEREFORE BE IT RESOLVED that the Board of Directors shall provide a full written report to the shareholders within four months of the date of the 1972 annual meeting on the involvement of the Corporation in the Republic of South Africa. This report shall include the following, provided that information directly affecting the competitive position of the Corporation may be omitted:
I. HISTORY
a. A history of the Corporation's involvement in South Africa since 1962 including: (1) the legal form of ownership of the Corporation's operations there; (2) annual capital investment broken down by source within and without South Africa; (3) annual profits; (4) number of employees broken down by race (Africans, Asians, Coloreds, Whites); (5) contractual relations with the South African government; (6) taxes paid to the South African government.
b. A listing and explanation of grants and charitable gifts made since 1962 by the Corporation in or with respect to the Republic of South Africa.
II. RELATIONS WITH WORKERS
a. A detailed listing of current wages and employee benefits by functional job description comparing African, Asian, Colored and White workers. A summary and comparison of wage rates, fringe benefits and promotions since 1962 for both white and non-white employees.
b. A description of grievance procedures and of Work Committees, if any, for African workers and of any trade union contracts or understandings which restrict opportunities for African, Colored or Asian employees.
c. A description, broken down by race, of technical training, general education, legal assistance, housing or other programs provided by the Corporation for workers or their families.
d. A description of any investment or plans for investment by the Corporation in the "border areas" of the Bantustans, or in the Bantustans proper.
Text of Resolution filed with the Gulf Oil Company
by the Council for Christian Social Action United Church of Christ (five shares)
WHEREAS Angola is one of the last areas in Africa under foreign (Portuguese) domination,
WHEREAS some shareholders believe that Gulf's involvement in Angola, including its payment of taxes, benefits the Portuguese government as it seeks to retain control of colonial Angola in the face of national war for independence,
WHEREAS this belief has led to considerable public concern including occasional boycotts of Gulf products,
WHEREAS specific information is vital for stockholders to make an informed decision about Gulf's involvement in Angola,
WHEREAS it is the right of stockholders to have access to non-competitive information about the Corporation's business,
THEREFORE, BE IT RESOLVED that the Board of Directors shall provide a full written report to the shareholders within four months of the date of the 1972 annual meeting on the involvement of the Corporation in Angola. This report shall include the following, provided that information directly affecting the competitive position of the Corporation may be omitted:
1. A thorough explanation of all contractual agreements between Gulf and the Portuguese government, including any agreements relative to the protection of Gulf's facilities.
2. A complete listing of all payments, including taxes, royalties and any payments for military protection, made by Gulf to the Portuguese government since 1954.
3. A listing and explanation of charitable grants and gifts made since 1954 by the Corporation in or with respect to Angola.
4. A detailed listing by functional job description of current wages and employee benefits comparing African and other workers employed by the Corporation or by contractors working for the Corporation in Angola.
STATEMENT OF SECURITY HOLDER
Gulf is the largest American investor in Angola, a large Portuguese colony in Africa. Official United States policy is that the Angolan people "should have the right of self-determination."
Gulf's investments in Angola total approximately $250,000,000 and reportedly it may pay Portugal as much as $30,000,000 in 1972 in taxes. These payments might make it easier for Portugal to suppress indigenous Angolan efforts for independence. This resolution is designed to provide basic data essential to an informed shareholder electorate concerning the Corporation's Angolan investments and the extent of the Corporation's involvement in Portuguese colonialism and the suppression of Angolan independence.