Jeffrey
Ballinger
KTH-527, 1280 Main St. West
Hamilton, ON L8S 4M4
Canada
February 4, 2005
Executive Vice Presidents Bertram Scott,
Scott Evans, and George Madison
TIAA-CREF
730 Third Avenue
New York, NY
10017
Dear Mr. Scott, Mr. Evans, and Mr. Madison:
We appreciate your interest, manifested in our November 1 meeting, in
the social responsibility issues we have raised. Our concern is with
the practices of a limited number of the companies in which you invest.
We consider such practices to be harmful to the quality of life for
millions world wide. Such practices also impact TIAA-CREF and its participants,
as you imply in your Policy Statement on Corporate Governance:
TIAA-CREF believes that building long-term shareholder value is consistent
with directors’ giving careful consideration to issues of social
responsibility and the common good. We recognize that efforts to promote
good corporate citizenship may serve to enhance a company’s reputation
and long-term economic performance, and we encourage boards of both
U.S. and international companies to adopt policies and practices that
promote corporate citizenship and establish open channels of communication
with shareholders, employees, customers, suppliers and the larger community.
Your policy statement also implies that TIAA-CREF has social responsibility
concerns beyond the bottom line. You indicate that you will vote favorably
on particular shareholder resolutions dealing with social responsibility--seemingly
because it’s the right thing to do. We have read your policy statement
guidelines closely and find within it room for your supporting resolutions
calling for divestment.
You have noted that you remain invested in companies that some might
consider as having questionable practices because it enables you to
monitor and have a voice in company policies. In most cases our request
is for your remaining in such companies for that purpose, but to be
transparent and specific in your efforts to monitor and influence along
these lines. We further ask that after a certain time period, perhaps
stated publicly if not just privately, that you divest if changes are
not made. Publicly divesting is an additional way to loudly voice your
opinion.
At the meeting you noted that it is difficult to move against particular
companies given the varied opinion of your large clientele. In response
we note that CalPERS, another large pension system with a diverse clientele,
has seen fit to sometimes divest or not invest in companies due at least
in part to social concerns. At least one other state pension fund does,
as well. We summarize our requests regarding particular companies with
the following:
1. Philip Morris/Altria has been legally proven to be responsible for
thousands of tobacco related deaths world wide. It should not be in
any TIAA-CREF portfolio.
2. TIAA-CREF should request that Costco close its warehouse in Cuernavaca,
Mexico. The company is responsible for hurting the quality of life in
that city, severely damaging an archeological site, and abusing human
rights. This was concluded by the Office of the High Commission for
Human rights of the United Nations.
3. TIAA-CREF should request that Wal-Mart close its Aurrera warehouse
in Teotihuacan, Mexico. Like Costco, the company is responsible for
destroying world heritage and violating human rights and civil liberties.
4. The fund should urge Wal-Mart to implement ways to lessen its destructive
impact on local economies; while both Nike and Wal-Mart must stop benefiting
from abusive sweatshops world-wide.
5. TIAA-CREF should pressure Chevron to stop financially supporting a
Burmese government that has one of the world’s worst human rights
records. Chevron recently lost a U.S. court case that found them liable
for such abuses.
6. We thank TIAA-CREF for divesting from World Bank bonds. We ask that
it publicly pledge to buy no new bonds as long as WB policies contribute
to economic hardship globally.
7. Since our November meeting, we have added Coca-Cola to our list of
companies we wish TIAA-CREF to act on. At home, Coca-Cola’s marketing
practices have helped contribute to an epidemic of childhood obesity;
abroad, Coca-Cola is responsible for serious human rights violations
at its bottling plants in Colombia. TIAFF-CREF should pressure Coke
to end all marketing to children and agree to an independent investigation
of the human rights abuses at its Colombian bottling plants.
There are experts within our coalition who can speak to the issues raised
above. They are ready to talk to you to present appropriate background
information.
Finally, we feel it is essential to maintain communication starting
with a meeting to discuss a timetable for progress on these issues.
We want to speak favorably to others about a fund that shows concerns
of this sort. Please do note that each week that goes by is time that
TIAA-CREF could have used its economic and moral clout to benefit people
worldwide. Indeed, we hope that TIAA-CREF will live by the implications,
if not the intentions, of its new advertising tag-line “Financial
services for the greater good.”
Sending you our highest regards,
I am sincerely yours,
Jeffrey Ballinger
Director, Press for Change
for the:
MAKE TIAA-CREF Ethical coalition;
TIAA-CREF: Out of the Bad and Into the Good.
CC. Herbert Allison, CEO
* The US Campaign for Burma * Corporate Accountability International*
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