475 Riverside DriveSuite 1842New York, NY 10115212-870-2295

For more information, or tobecome a member of ICCR,please contact ICCR’s MemberRelations Associate AllisonLander at alander@iccr.orgor 212-870-2984.

www.iccr.org

“When I began speaking out on environmental and socialissues more than 30 years ago, the Interfaith Center onCorporate Responsibility was a welcome voice of encourage-ment among many that were doubtful. They cheered us onwhen we made progress, and challenged us to move fasterand do better when we didn’t. Thanks in large part to thework done by ICCR, today the idea that businesses can dowell by doing good is widely acknowledged.”—William Clay Ford Jr., Executive Chairman, Ford Motor Company

“Today’s increasingly complex social and environmental issuesrequire a broad stakeholder approach which is collaborative,informative and mutually supportive. ICCR has routinelyprovided experience, insight and a results-orientation to arelationship with The Walt Disney Company which began inthe mid-1990’s. If people and organizations are in fact knownby the relationships they keep, we are truly honored to beconsidered a member of the ICCR community.”—Mark Spears, Director, Sustainable Business Practices,Disney Consumer Products

A Faithful Voice for Justice:ICCR and 40 Years ofShareholder Advocacy

|� � � �

ICCR

In the 400 years since the creation ofthe corporate entity, people of faithhave consistently spoken out aboutthe social impact of capital. Jewish,Christian and Muslim leaders have

long recognized practices to encourage eth-ical investments while identifying invest-ments to avoid. During colonial times inNorth America, both the Quakers andMethodists explicitly avoided investmentsthat supported the slave trade. Muslimshave had strict prohibitions against inter-est-bearing investments. Likewise, Judaismand Catholic teachings are clear onthe responsibility to attend to theneeds of the poor.

These foundational teachings arewoven throughout the 40-yearhistory of the Interfaith Center onCorporate Responsibility and con-tribute to its ever-growing influenceover four decades of shareholder

advocacy. Although mostreligious investors contin-ue to avoid investing inactivities contrary to thetenets of their faith — i.e.“sin stocks” — the level ofsophistication demonstrat-ed by religious investorsand their allies has grownfar beyond avoidance.

at 40 Religious Investors andShareholder Advocacy

The history of ICCR isthe story behind thatgrowing sophisticationin approach and influ-ence. In strengtheningthe voices of religiousand values-basedinvestors, ICCRbrought the field of

shareholder advocacy to full light. Fortyyears from its founding,shareholders around theworld are using engagementpractices refined by ICCRmembers throughout yearsof faithful, persistent action.

The timeline that followstells the story of a pioneeringvision, a relentless pursuit ofjustice and sustainability

through active shareownership and trans-formational dialogue.When one surveys con-temporary shareholderadvocacy, one sees ageneration of advocatesfollowing the exampleset by ICCR and itsfounders. The voices that have long been

“inspired by faith;committed toaction” growevery day morecommitted andmore faithfulthanks to theinfluence, ideasand persistenceof those earlypioneers.

The 1980sLed by ICCR, churches and pensionsystems filed 185 shareholder resolu-tions on apartheid during the summerof 1986. On October 20, 1986 GeneralMotors announced it was selling itsSouth African investments, followed

the next day by IBMdeclaring its intentionto withdraw — bothhistoric victories. Thetrickle of U.S. corpora-tions withdrawingfrom South Africabecame a flood, withfifty U.S. corporationsleaving South Africaduring 1986 alone.

During the ’80s ICCRmembers also focusedon the negative por-

trayal of women and minorities inadvertising campaigns. An examplewas their work with Colgate Palmoliveon its “Darkie” brandof toothpaste,which featureda minstrelcharacter inblackface.

The 1970sDuring the 20th century the interna-tional centers of power began shiftingfrom the capitals of national govern-ments to the headquarters and board-rooms of the world’s biggest compa-nies. Corporations and the capital theywielded developed an extraordinaryinfluence on global economies,government policies and hence, peopleand the environment.

organizations soon joined the campaign,and organized themselves as the ad hocInter-Faith Committee on SocialResponsibility in Investment, whichbecame the Interfaith Center onCorporate Responsibility.

Churches vs.The Multi-Nationals

Accustomed to more compliantinvestors, corporations bristled at thischeck on their power and pushed backby tightening the rules around thefiling of resolutions and waiting untilthe last minute to disclose the dates ofannual general meetings and holdingthem in out-of-the-way locations to limitshareholder participation.

Many of the issues ICCR membersbegan addressing during the ’70s fore-told coming cultural shifts, such asequal employment opportunity/ diversi-ty, military profiteering, excessive drugpricing, adequate nutrition (includinginfant formula), political contributions,equal access to capital, and the environ-mental impact of strip mining.

As the anti-apartheid campaign becamea broader social movement in the late’70s, ICCR members pressured compa-nies to adopt The Sullivan Principles—codes of corporate conduct calling forpolitical justice through fair employ-ment in South Africa.

|� � � �

“Before now our shareholders havealways been loyal.”— the Corporate Secretary of Gulf Oil, 1971

“For the past few years, wehave watched helplessly as‘well-intentioned’ share-holders have bombardedand overloaded the proxystatements of issuers withproposals which are at bestoccasionally constructiveand at worst absurdand often times moreappropriate for theplatform of a politician.”— A. Joseph Dowd, CorporateSecretary, American ElectricPower, 1983

Apartheid: A GalvanizingIssue for Faith Groups

In the early ’70s, the abhorrent policyof apartheid, the legislated segregationof races in South Africa, became aclarion call to action for faith commu-nities. In 1971, the Episcopal Church inthe U.S.A. filed the first religious-spon-sored shareholder resolution withGeneral Motors requesting that thecompany withdraw its operations untilapartheid was abolished. Other faith

“No, I won’t see either you or your Bishop. TheEpiscopal Church has no business getting into thematter whether as a stockholder or otherwise.You can send me a memorandum if you wish.”— anonymous mining company executive, 1970

“The magic of this process is that the proxy lands on the desk of everyimportant institutional investor. It can’t be thrown in the wastebasketwithout being opened. The trustees actually have to look at it.”— Bevis Longworth, SEC Commissioner, 1983

|� � � �

An early anti-apartheid protest.

Darkie toothpaste,with minstrelcaricature.

Anti-strip-mining graffiti.

Social Investing and ImprovingAccess to Capital

Seeing another opportunity to leverage theirinvestments for the common good, in the early’80s ICCR members launched a Clearinghouseon Alternative Investment to encourage faithcommunity participation in community eco-nomic development. Hundreds of millions ofdollars were earmarked for projects such asaffordable housing, enterprise development,and worker-owned businesses, while communi-ty loan funds and banks were urged to broadentheir credit offerings to women, minorities andinner city communities. By 1995, these “impactinvestments” would exceed $300 million.

The Coalition Diversifies

In the ’80s, ICCR diversified to include non-faith-based institutional investors eager toaddress social justice issues. In 1982, CalvertGroup joined ICCR as its first non-faith-basedmember, and became the first money marketfund to launch a social screen for investments.Throughout the ’80s unions and some of thecountry’s largest pension funds, includingTIAA-CREF and those of the states of NewYork, California, Wisconsin and Minnesota,joined faith-based investors in challenging thecompanies in their portfolios to improve theirsocial and environmental practices.

|� � � �

The 1990sActing on the Environment

In the wake of the Love Canal andThree Mile Island disasters, the EPApassed the Superfund Act and tight-ened environmental regulations.Shareholder activists applied pressurefrom the inside by urging companies toadopt voluntary initiatives for wastereduction, energy conservation andpublic safety like the Valdez andCERES Principles.

Sweat Shop Labor

In the mid-’90s, ICCR members con-ducted “purchasing power studies” andturned their attention to the sweatshopconditions in the maquiladoras, theapproximately 2,100 mostly U.S.-owned plants, situated in Mexico alongthe U.S. border. ICCR members helpedfound the tri-national Coalition forJustice in the Maquiladoras, whichseeks to improve the lives of workers.

ICCR also joined President Clinton’sWhite House Apparel IndustryPartnership, which adopted a code ofconduct for suppliers and principlesfor monitoring that became the indus-

try standard. In 1995, ICCR publishedthe Principles for Global CorporateResponsibility, guidelines to transformthe way corporations relate tocommunities and the environment.

Battling Big Tobacco

Throughout the ’90s, ICCR membersused their power as shareholders tohelp limit public health risks by askingtobacco companies to include warninglabels on their products & advertising,and requesting that they refrain fromlobbying against legislation aimed atregulating tobacco and smoking.

ChampioningInternationalHuman Rights

As an interfaithorganization, ICCRhad a unique role in Northern Ireland,working across faith lines towardequality of opportunity and an end toreligious discrimination in the work-place. ICCR members filed scores ofshareholder resolutions asking compa-nies to implement The MacBridePrinciples on Fair Employment inNorthern Ireland. ICCR also calledon companies to cut their ties to thenotoriously repressive militarygovernment of Burma (Myanmar).

The 2000sICCR’s members are now regarded asserious investors with the ability to fore-tell the emerging social and environmen-tal issues that lead to business risk.

Most Fortune 500 companies have cor-porate responsibility departments andare formally disclosing their environ-mental and social impacts. Companies

resisting thisprogress aresubject to poorEnvironmental,Social,Governance(ESG) ratingsthat will directlyimpact companyreputation and,consequently,share price.While it is nolonger uncom-mon for share-

holder proposals to win investor sup-port of 30 percent or more, the prac-tice of filing resolutions isgradually being replaced by productiveinvestor dialogues. By 2010, profession-ally managed assets following SRIstrategies were valued at $3.07 trillion.

In the course of 40 years, the CSR move-ment has developed into a serious field,as evidenced by the explosion of “social”investment firms and the burgeoning CSRstaffs at most Fortune 500 companies.Helping to drive this growth is a demandfor “green,” “fair trade” and “ethicallysourced” products, and discriminatinginvestors who only buy stock in compa-nies able to meet increasingly stringentESG standards. These investors areempowered in their choices by aproliferation of organizations dedicatedto promoting shareholder advocacy.

We are grateful to the many pioneersin shareholder advocacy who first envi-sioned the possibility of transforming cor-porate practices for the common good.Their faith has inspired generations andtheir wisdom continues to guide ourorganization.

As Nelson Mandela said, “After climbing agreat hill, one finds many more to climb.”

We pause briefly at this summit to admirethe view, and with a renewed sense ofpurpose, continue forward.

“We realize we havea commitment toour communities.”— Carol Weber,Knight-Ridder, 1996

“Over the years, The Coca-Cola Company built arelationship of trust andrespect with ICCR as weworked together to addressmany challenges facing ourcompany. This collabora-tion on a range of issuesfrom workplace rights towater stewardship has trulyled to improvement in ourpolicies and practices.”— Mark Preisinger, Directorof Corporate Governance,The Coca-Cola Company, 2011

|� � � �

ICCR members supportClinton Tobacco Initiative

ICCR members tackle Exxon Mobil.

An ICCRdialogue with

Hormel.

Design: Kathryn Brewer