October 24th Letter to TIAA-CREF
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Amy Muska O'Brien Director of Social Investing TIAA-CREF 730 Third Avenue New York, NY 10017 October 24, 2005 Dear Ms. O'Brien: As discussed, I am writing to request a meeting with you and other appropriate TIAA-CREF personnel to attend to the concerns of the Make TIAA-CREF Ethical Coalition. In previous meetings with TIAA-CREF, that group or Social Choice for Social Change (a coalition partner) have met with such TIAA-CREF officers as the CEO and Executive Vice Presidents. As seen in our previous correspondence and in media coverage, our coalition is requesting that TIAA-CREF influence the activities of six companies in their portfolios and invest in projects beneficial to society. Though we feel that divestment is appropriate given the egregious record of these companies in damaging the world community, we have proposed that TIAA-CREF attempt to influence these corporations by engaging in shareholder advocacy that includes both voting and quiet diplomacy. We also have a few requests, seen below, that concern TIAA-CREF's own policies. For example, one involves TIAA-CREF pledging not to purchase any new World Bank bonds, which you have sold previously. We feel that such actions are justified for a number of reasons, among them: (I) TIAA-CREF, as an important member of society, should have high ethical standards (II) there are relevant statements in TIAA-CREF'S Policy Statement on Corporate Governance (e.g., on human rights and labor concerns, as well as on social responsibility effects on long term shareholder value); (III) TIAA-CREF's new policy on shareholder advocacy for social responsibility issues (even applying that beyond the Social Choice Account); and (IV) TIAA-CREF's long history of advocacy on governance concerns. We also feel that you should take into account the following points: 1) TIAA-CREF has a media campaign built around the theme "Financial Services for the Greater Good," which advertises that the company is "mindful of social responsibilities and has a long history of championing corporate governance"; (2) there is a rather small number of target companies with which we are concerned, given the thousands that TIAA-CREF invests in; and (3) there are circumstances in which TIAA-CREF should advocate for changes in particular companies whether or not such changes fit within TIAA-CREF'S chosen areas of advocacy emphasis (when there are egregious acts properly highlighted by stakeholders, they should merit attention). We see this meeting as a means of reaching the final stages of the discussions we have had with TIAA-CREF for several years. Once again, our requests have been to influence the six companies, considered to be highly unethical, in ways described below. Of course, after the meeting, if other means of communication are not sufficient, additional face-to-face events could be arranged. We have some related concerns that, while not specific "demands" of the Coalition, we would like to address in future meetings when time is available. For example:
Sincerely, Neil Wollman, Ph.D. Representative, Make TIAA-CREF Ethical Coalition Senior Fellow, Peace Studies Institute Professor of Psychology Manchester College North Manchester, IN 46962 260-982-5346 (Here is one additional idea we told Ms. O'Brien subsequently: "We really do see what we propose as an exciting opportunity to influence the corporate world in a significant way. Most of the companies we are targeting are leaders not only in their industry but beyond. If their behaviors can be influenced, it can have a ripple effect that will affect many for social good.") ................................................................................................................................. Nike TIAA-CREF should ask that Nike disclose all collective bargaining agreements, as well as wage levels, for each of its partner factories. Disclosing the locations of its partner factories was a start, but this additional information will allow for a judgment on the fairness of operations at those locations. As background to influencing Nike, TIAA-CREF should approach relevant governments to find the official statistics on labor law enforcement in the six countries where the majority of Nike's contract factories are located (Mexico, China, Vietnam, Indonesia, Thailand, Brazil): number of inspectors, number of workplaces visited in 2004, number of violations found, enforcement proceedings and restitution paid (if applicable). Also, TIAA-CREF needs to research the text of laws in these countries covering workplace sexual harassment. A brief survey of any recent cases would also be helpful. Rationale: As media reports make clear, no amount of "code monitoring" is going to address workplace abuse issues in a comprehensive manner. Unfortunately, the countries where Nike products are made have atrocious records on protecting their own workers. One of the big surprises of the 1993-8 period -- when many organizations and journalists were examining Nike supplier factories in Indonesia -- was the government of Indonesia's repeated increase in the minimum wage. The conclusion some have drawn is that the pressure aimed at the Nike corporation had a more practical impact on workers' lives because of what the government of Indonesia did. An inquiry into the "enforcement of labor law" question might produce the same salubrious effect. ................................................................................................................................. World Bank Bonds TIAA-CREF should formally sign on to the World Bank Bonds Boycott and publicly declare a policy against re-purchasing World Bank bonds as long as World Bank policies contribute to economic hardship globally. ................................................................................................................................. Phillip Morris/Altria TIAA-CREF should ask that Phillip Morris/Altria stop interfering worldwide in the ratification and implementation of the global tobacco treaty (Framework Convention on Tobacco Control). It should also ask them to stop tobacco advertising, promotion, and sponsorship that appeals to young people (using images like the Marlboro Man). ................................................................................................................................. Coca-Cola Co. TIAA-CREF should support any proxy resolution calling for an independent investigation into labor and human rights abuses at Coca-Cola bottling plants in Colombia and elsewhere; and on its own should ask Coke to conduct such an investigation. TIAA-CREF should ban the sale and promotion of all Coca-Cola products in its facilities and at its functions. Because of the Coca-Cola Company's complicity in massive human rights abuses, including kidnapping, torture, and murder of union leaders at its bottling plants in Colombia, nineteen colleges and universities, as well as many of the largest unions in the United States and Europe, have either banned the sale and distribution of Coke products or eliminated their exclusive contracts with the company. These unions include many teacher organizations, such as the 525,000-member New York State United Teachers and the California Federation of Teachers, which have thousands of members in TIAA-CREF. In addition, many human rights organizations and other groups have called for a boycott of Coke. TIAA-CREF should also ask Coke to end all marketing aimed at children (including in-school marketing, product-placement, and Coke toys) and stop lobbying against policies that would improve children's diets. More than 40 distinguished healthcare professionals and advocates for children asked TIAA-CREF to remove The Coca-Cola Company from CREF's Social Choice Account. TIAA-CREF should also ask that Coke no longer usurp for its own purposes water supplies in India and elsewhere where water is needed for its own citizens. ................................................................................................................................. Wal-Mart TIAA-CREF needs to ask Wal-Mart to: Have Wal-Mart Realty assign a community representative to meet with neighbors of every proposed store, to solicit their concerns and ideas for development, and bring them to a WMR committee that will respond to each concern, and seek to maximize compliance with each of the wishes of the neighbors, including relocation of the site if the community does not want the facility. Adopt the following development principles:
Costco TIAA-CREF should ask that Costco close its warehouse in Cuernavaca, Mexico. The company and its associate Comercial Mexicana are responsible for hurting the quality of life in that city, severely damaging an archeological site by abusing human rights. This was concluded by the Office of the High Commission for Human rights of the United Nations. Because a permanent boycott is in effect, Costco is considered to be a fiduciary risk until it repairs damages made to mural and architectural artwork as well as to an urban forest found in the historical site. The boycott is supported by nearly 150 organizations world-wide and demands closing the warehouses of Costco and Comercial Mexicana in the Casino de la Selva. ................................................................................................................................. Unocal TIAA-CREF should ask Unocal to stop financially supporting the Burmese government, which has one of the world's worst human right records. This might require Unocal moving out of Burma. Unocal has lost a U.S. court case that found them liable for such abuses. * 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 |
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