Stockholder Resolutions Filed with 10 Corporations
Diocesan Press Service. January 16, 1973 [73014]
THE CHURCH PROJECT ON U.S. INVESTMENTS IN SOUTHERN AFRICA -- 1973
NEW YORK, N. Y. -- The largest Protestant church cooperative effort to date to challenge American corporations' investments in Southern Africa was announced here today.
Six Protestant church organizations, one of which is the Episcopal Church, said they have filed stockholder resolutions for placement in annual meeting proxy statements with 12 corporations. The purpose of their action, they said, is to bring to the companies' attention church concern about apartheid in the Republic of South Africa and oppressive conditions for Africans in other Southern African countries.
The resolutions ask the companies to disclose the history of their involvement in South Africa, to provide comparative statistics on numbers of workers, wages paid, trade union contracts with African, Asian, colored and white workers, and to describe compliance with apartheid laws and any efforts by corporations to have the government modify the laws.
Three church leaders announced the joint action for the Church Project on U.S. Investments in Southern Africa -- 1973, at a press conference at the Church Center for the United Nations. The project is a cooperative venture of boards and agencies of the American Baptist Churches, the National Council of Churches, the 'Episcopal Church, the United Methodist Church, the United Presbyterian Church in the U.S.A. and the Unitarian-Universalist Association. All are substantial institutional investors.
Stockholder resolutions asking for facts about their involvement in South Africa have been filed with 10 companies. They are Caterpillar Tractor Co., Chrysler Corp., Eastman Kodak Co., First National City Bank, General Electric Co., International Business Machine s Corp., International Telephone & Telegraph Corp., Minnesota Mining and Manufacturing Co., Texaco Inc. and Xerox Corp.
Church groups filing the resolutions, with a combined total of 118,639 shares, are the Domestic and Foreign Missionary Society of the Protestant Episcopal Church in the U.S.A.; American Baptist Home Missions Societies and Board of Education and Publication; National Council of Churches; Board of Christian Education, Commission on Ecumenical Mission and Relations, and Board of National Missions, all of the United Presbyterian Church in the U.S.A., and the Women's and World Divisions of the Board of Global Ministries, United Methodist Church.
A separate resolution has been filed by the Unitarian-Universalist Association with Exxon Corp. asking the company to establish a special committee to investigate implications of a proposed investment in the Portuguese colony of Angola. UUA holds 6,000 shares of Exxon at an approximate value of $486,000. In addition, a separate resolution has been filed by the Episcopal Church with Phillips Petroleum Co. which asks Phillips not to go into Namibia (South-West Africa). The Episcopal Church holds 15,600 shares of Phillips stock, worth approximately $685,000.
The Rev. W. Sterling Cary, newly elected president of the National Council of Churches, said that the joint act Ion was being taken because " United States churches have long been concerned about the oppression of millions of black people by a white minority in Southern Africa. We have spoken out against apartheid in South Africa, colonialism in Angola, Mozambique and Guinea-Bissau, the illegal declaration of independence in Rhodesia and the illegal occupation of Namibia by South Africa. "
He added, "We believe it is our responsibility as Christians not only to actively fight racism in America but to also battle it in Africa, the continent from which black America has sprung. The fight against racism is not divisible.
"The time is past when U.S. companies can operate without questions being asked about their role and their operations in South Africa. Hard questions are now being pressed from many sectors of the American public," the NCC leader said.
The Rev. Dr. Gene E. Bartlett, president of the American Baptist Churches, speaking in support of the resolutions, said that questions of racism and colonialism in Southern Africa "are our questions -- not simply because the Christian gospel demands our concern for the hungry, oppressed and suffering but because world peace rests on the brink there. "
Miss Florence Little, treasurer of the Women's Division of the United Methodist Church, said today's actions were a way of "translating into action" the churches' expressed opinions regarding colonialism and racism in Southern Africa. The church coalition will solicit supporting proxy votes from universities, foundations, mutual funds, unions, other churches and individual stockholders, she said.
The Church Project on U. S. Investments in Southern Africa was formed in 1971. In 1972 it filed stockholder resolutions requesting full disclosure of the involvement of Mobil, Goodyear, IBM and General Motors in South Africa and Gulf Oil in Angola. Mobil agreed to voluntarily disclose this information and sent it to all shareholders. IBM made a similar agreement, but in the end disclosed only a portion of the information. Gulf, after a proxy contest, finally disclosed data.
Announced at the press conference was an agreement between the Episcopal Church and GM in which the company agreed to mail to all stockholders a booklet on corporate responsibility, including full disclosure of the company's involvement in South Africa.
The Rev. Stewart MacColl, of the United Presbyterian Church in the U.S.A., announced that the United Presbyterian Church has withdrawn its resolution filed with Burroughs Corp., after that company indicated it planned to publish a report which would outline and explain to shareholders and others their program in areas involving social issues of public concern including South Africa.
Goodyear refused to provide any information and the disclosure resolution was defeated at the company's 1972 stockholders' meeting.