2008 Annual Meeting of TIAA-CREF
We can now publicly report that TC is in discussion with two of our five target companies—Coke and Wal-Mart!! Such shareholder activism by TC is, of course, the remaining goal of our work (we are moving forward on Nike, Costco, and Philip Morris/Altria, as well).
Unfortunately, thus far it’s been only “talk” (two years with Coke and perhaps a year with Wal-Mart). The next step is to get TC to employ the tougher tactics necessary to move these giants, and which TC lists as possible tactics in their Policy Statement on Corporate Governance (for example, “engage in public dialogue and commentary.., engage in collective action with other investors…, seek regulatory or legislative relief…, and commence or support litigation.”).
So that will be our focus now (see our revised basic campaign message below). And we now ask you to send the below around widely, perhaps with a small personal intro, encouraging the new focus. Plus, please do contact TC again highlighting this new focus, but do mention our general cause and other target companies. THANKS. If your organization/school (or parts of) can take a collective stand, great (see What can you do?, in message below).
On July 8, our TC Coalition reps for Coke, Nike, and Wal-Mart (some of the very top activists on those issues) met with TC personnel. (There will be ongoing discussions.) As we’ve always done, we talk while we lobby.
On July 15, CREF held its annual shareholder meeting in Denver. The location necessitated suspending our usual demonstration. But we worked hard to get 8 folks to attend and speak, and dominated discussion! Our press release (you saw) brought little media, given not in New York (see one story here-- http://www.rockymountainnews.com/news/2008/jul/15/issue-of-sudan-on-table-for-ceo/ ). But the release was widely distributed to media via internet and we are sure led to TC releasing its own piece on their social responsibility activities. In his opening remarks, their new CEO stressed social concerns, specifically mentioning only two companies, Coke and Wal-Mart, and their efforts with them. We are still catching their attention. We also pushed our new three stage approach for their engaging companies (discuss, tougher tactics, divest). Finally, one of our speakers kept extensive notes on the meeting (see attached outline).
So, we carry on, happy about our accomplishments over the years in promoting social good (brief history attached), but still needing to complete our collective work. Let’s get moving again! Thanks, Neil
"MAKE TIAA-CREF ETHICAL COALITION" ASKS: IS YOUR INVESTMENT REALLY GOING TOWARD THE "GREATER GOOD"?
(You can help promote corporate responsibility even if you are not in the TIAA-CREF pension system)
Dear Professor/Staff Member,
It’s morning in America --- do you know where your pension fund assets were last night?
Would it upset you to know that TIAA-CREF (TC) ---the nation’s largest retirement fund---is a major investor in companies like Wal-Mart, Nike, Costco, Coca-Cola, and Philip Morris/Altria? Millions of TIAA-CREF participants are contributing their money to support abusive human and labor rights practices, destruction of the environment, and harming of human health.
The fact is, some of our country’s worst corporate violators are right at home in the portfolio of TC—which says it provides financial services “for the greater good."
In 2007, the 600,000-member New York State United Teachers (NYSUT) passed a resolution critical of CREF’s continued investment in several of these corporations. (See attached resolution.) Soon after, the 1.3 million member strong American Federation of Teachers passed a similar resolution. As educators and those working along-side them, we have spent our careers trying to help students learn the truth about the world around them. The truth is that TIAA-CREF continues to invest our funds in these corporate bad actors.
We don’t want our investment —
- Exploiting Third World workers at Nike and Wal-Mart vendor sweatshops
- Aggressively union-busting American workers at Wal-Mart
- Destroying historic Mexican culture to build Costcos-- and abusing the human rights of those who protest.
- Polluting drinking waters in India; allowing the intimidation or even killing of union workers under the not-so-watchful eye of Coca-Cola bosses in Colombia
- Supporting the killing practices of Philip Morris/Altria, including its marketing to youth
It’s time for faculty, staff, and students on campuses across America to tell TIAA-CREF it must use its considerable shareholder power to influence these corporations for the better--or stop investing in them. Our work is starting to pay off, but we have a long way to go. TC has now told us that they have been talking with both Coca-Cola and Wal-Mart. Unfortunately, they have been talking with Coke since 2006, with no substantive changes. Two years is enough time to give Coke. It’s time for TC to do more than just “talk” with Coke and Wal-Mart. And, indeed, TC lists such tactics as collective action, regulatory relief, and litigation in their Policy Statement on Corporate Governance. Why list them if they are not used?
What can you do? Let’s turn up the heat on CREF to truly invest for the “greater good.” Help us educate the faculty, staff, and students on your campus and nationwide. Email this message to others at your school and elsewhere. (We also have an op-ed that can be distributed to listservs, academic/administrative publications, organizations, schools, etc.)
All of us need to :
* Individuals should call TIAA-CREF at 800-842-2733 (212-490-9000) and ask for CEO Roger Ferguson. Leave the message: “I want TIAA-CREF to put Wal-Mart, Nike, Coca Cola, Costco, and Philip Morris/Altria, on notice that if they don’t clean up their human rights, environmental, and health practices, that CREF will find other companies to invest in.” Importantly, tell TIAA-CREF to start using those tougher tactics with Wal-Mart and Coke—ways that will be needed to influence these corporate giants. if you are in the TIAA-CREF system; and if you are able to do so at your institution and feel strongly enough, say that you (or your whole school) will withdraw money from TIAA-CREF if they don’t decide to engage or withdraw from these companies.
* Individuals should also email Mr. Ferguson and TIAA-CREF Trustees with the same message: RWFerguson@tiaa-cref.org; trustees@tiaa-cref.org
* As a faculty or staff body, send a letter to TIAA-CREF and/or pass a resolution similar to NYSUT's and send them to: Roger W. Ferguson, CEO, TIAA-CREF, 730 Third Avenue, New York, NY 10017
* Tell local or national media about the concerns raised in your letter or resolution
Express your concerns to TC representatives visiting your campus
For the Coalition,http://www.makeTIAA-CREFethical.org email nwollman@bentley.edu for campaign updates (say “TC updates” in subject line).
Neil Wollman; Ph. D.; Senior Fellow, Bentley Alliance for Ethics and Social Responsibility; Bentley College; Waltham, MA, 02452; NWollman@Bentley.edu; 260-568-0116
Sprawl-Busters, Press for Change,Campaign to Stop Killer Coke/Corporate Campaign, Inc.,Campaign for a Commercial-Free Childhood, Social Choice for Social Change, Citizens Coalition (Frente Civico), Educating for Justice, National Community Reinvestment Coalition, United Students Against Sweatshops, Canadian Committee To Combat Crimes Against Humanity (CCCCH), Corporate Accountability International (formerly Infact), World Bank Bonds Boycott
Make TIAA-CREF Ethical is a project of the Bentley Alliance for Ethics and Social Responsibility; Bentley College.