Episcopal Press and News

Stockholder Resolutions Approved, Referred

Diocesan Press Service. December 18, 1975 [75448]

GREENWICH, Conn. -- The Executive Council of the Episcopal Church has approved the filing of stockholder resolutions with two corporations submitted by its Committee on Social Responsibility in Investments and referred resolutions proposed for a third company back to the committee for further study.

The 41-member Council, meeting here December 16-18, by a voice vote authorized the committee "to initiate, file and pursue with Kennecott Copper Corporation a shareholder resolution" calling upon the company to "cease and terminate " any plans it may have to "conduct any mining, smelting or refining operations in the Republic of South Africa or in South-West Africa (Namibia)."

In the meanwhile, according to Melville K. Hodder, Cambridge, Mass., chairman, committee members will meet with Kennecott management "to get management to see the wisdom of not going ahead with this project. "

A second stockholder resolution was authorized to be filed with International Business Machines (IBM), calling upon the company to disclose data on its policy with regard to selling or leasing computers to South Africa. The resolution, which was passed overwhelmingly by voice vote, specifically asked IBM to describe its criteria to determine "whether any of its products are being or could potentially be used " by the government of South Africa to " strengthen its control over the black majority " or to "build its military strength or capability, " or to "expand its police functions. "

A motion by Joseph I. Worsham, Dallas, Tex., to amend the resolution by deleting the reference to building the government's "military strength or capability" was defeated.

The Council voted to send back to the committee for further study and re-wording a proposed resolution to be filed with Deere and Company, asking the board of directors to indicate whether any illegal political contributions have been made in the past 10 years, as indicated by entries "which have not been recorded," or whether there have been "any significant false or fictitious entries," or any "significant expenditures" which were made "without adequate records and controls. "

Mr. Hodder reported that there was no evidence or even suspicion that Deere and Company had done anything wrong, but rather the corporation was chosen " at random " in the committee's effort "to get at the disclosure side of ethics."

Suffragan Bishop Hal Gross of Oregon said that he objected to this committee procedure. He said it was as though the Council were asking the corporation, " If you have stolen anything in the last 10 years, tell us how and how much. "

The Rev. William V. Powell, Stillwater, Okla., said, "I feel that I was hoodwinked. " At first reading, he said, he "felt there was some justification or suspicion that there was some money misappropriated." He was referring to wording in the preliminary parts of the resolution which mentioned millions of dollars that had been misappropriated, though Mr. Hodding pointed out that those references were not related to Deere and Company.

The Rev. Gerald N. McAllister, San Antonio, Tex., said he was "disturbed by the ethics of this if we have no evidence at all." We should "give them the benefit of the doubt," he said, and assume that the corporation is "innocent until proved guilty." A motion to delete large sections of the narrative parts of the resolution lost when the Rev. John B. Coburn, Boston, Mass., vice chairman of the Council, who was in the chair, cast a vote to break a 13 to 13 tie.

The Council voted to commend Mr. Hodding for his presentation and the president of Pitney-Bowes Company who recently spoke out on "corporate morality," saying that "no price is too high" to achieve such morality, and that "we have no alternative to ethical business behavior. "