Support Voted for Committee on Social Criteria for Investments
Diocesan Press Service. September 30, 1971 [95-4]
GREENWICH, Conn. -- The Episcopal Church will continue its program aimed at using social as well as financial criteria as a basis for Church investments.
Meeting here this week, the Executive Council of the Church voted to support the ongoing efforts of the Council's Committee on Social Criteria for Investments, headed by New York City lawyer Robert S. Potter.
It was this committee that startled the financial community last Spring by offering a stockholder resolution calling for withdrawal of General Motors from South Africa, on the ground that it was indirectly encouraging the policy of apartheid by the South African Government.
Some opposition to this proposal has come both from clergy and laity. At least two major national Episcopal bodies with sizeable investment portfolios have as yet declined to support this policy: the Episcopal Church Foundation and the Church Pension Fund.
The Executive Council, however, authorized the Social Criteria Committee to continue to press General Motors and other American firms engaged in business operations in South Africa. This will be done through shareholders' resolutions and through requests for full company disclosure of wage and employment practices.
It was noted that public interest in the South African situation in particular and the whole area of social responsibility of business firms in general had been stimulated by the General Motors proxy fight. Mr. Potter also reported personal discussions between Presiding Bishop John E. Hines and President James M. Roche of General Motors.
The Council also endorsed renewed protests, with the strong support of the Rt. Rev. Francisco Reus, Council member and Bishop of Puerto Rico, against the planned copper mining venture in Puerto Rico by Kennecott and American Metal Climax, on the grounds that this had not yet given "adequate considerations to the social, economic, and ecological costs" resulting from the venture.
The Committee had suggested the disposal of all but five shares of Kennecott and Amax stock, thus allowing continued access to shareholders' meetings and proxy fights. Council member Philip Masquelette, of Houston, Tex., filed a minority report to this recommendation, requesting the sale of all shares, stating that "we either approve Amax and Kennecott or we do not." This matter was ultimately resolved by approval of a motion by Clifford Morehouse, of Sarasota, Fla., who moved that no stock be sold pending indications of final action on this matter by both companies.
Another statement in the Committee Report was warmly debated, in which church incomes from "companies that contribute to war and pollution" were deplored. Several members consider this pejorative. Others felt that it reflected on any firm contributing to the defense effort. Even though Council acceptance of the report would not necessarily carry the approval of the report in its wording, Dupuy Bateman, Jr., introduced a motion based on this objection which was defeated, but later a resolution to the same purpose by Bishop Gray Temple of South Carolina was overwhelmingly passed.
The 74-page report submitted by the 11-member Committee on Social Criteria included reference to many conferences attended, personal interviews with business executives and government officials, and media coverage.
The Committee submitted a budget request for its work in 1972 and also a proposed charter of operation. These were referred to the Finance Committee and to the staff of the Executive Council for study and recommendation to the December meeting of Council.