SHAREHOLDER ADVOCACY
A Matter of Stewardship
Most of the money invested through,
and managed by, financial professionals on Wall Street, and across the
financial services business, does not belong to Wall Street or the
people who manage it. It belongs to people on Main Street, on college
campuses and in college towns, union members and non-union working
people in factories, offices, hospitals, service businesses, the
construction trades, transportation, and nonprofit organizations. It
belongs to local, state, and federal government employees. Among the
owners are millions of households whose income earners invest part of
their resources for the future, for retirement, college costs, or other
needs. Among the owners are millions of employees and the self-employed
who invest in IRAs, 401k plans, or 403b plans, and whose employers,
including local, state, and federal governments, offer pension benefits
as part of their employees’ compensation. Among the owners are
philanthropic foundations, charitable institutions, and nonprofit
organizations. Among the owners are those fortunate enough to have
inherited wealth from previous generations.
The true owners of the worlds corporations are, whether they know it
not, or like it or not, global citizens with global responsibilities.
These individuals, families, communities and institutions share values
that are not reflected in the way their money is invested. It’s time
they took responsibility for the global impact of what they own. Wall
Street has traditionally managed other people’s money as if those other
people neither cared about nor needed to know about the social and
environmental impacts of their portfolios, impacts felt locally and
globally, impacts that are sometimes matters of life or death for
thousands.
Given a choice, most investors would prefer that their pension funds and
retirement plan contributions not be invested in companies that violate
labor or human rights standards. Most would prefer not to own shares of
companies that pollute the environment. Most investors don’t want to buy
or own the stocks or bonds of companies that produce dangerous products.
Most investors want the companies they own to recognize the interests of
all stakeholders, including their employees, their customers, and the
communities and natural environments in which they operate.
In short, given a choice, most investors want the companies they own or
invest in to be good corporate citizens, locally, nationally, and
globally. Investors are increasingly recognizing that Corporate Social
Responsibility (CSR) is vital to a healthy future for humanity, and
vital to the profitability of their investments. Corporate Social
Responsibility reduces many risks, but socially responsible investing
does not reduce all risks associated with investing such as general
market volatility and/or adverse economic conditions. At L. B. Stant and
Associates, we believe that the less risk required to achieve the return
you need, the more sound your investment strategy will be. Depending on
your circumstances, it may not be advisable to run any investment risk
at all. In the broadest sense, a key goal shared by all SRI shareholder
advocacy is to reduce the risk of investing throughout the securities
markets." But what choice do you have, if you are not aware you have a
choice?
The SRI industry is on a mission to wake up the real majority of owners
of corporations, the global citizens described above, to their
responsibilities as owners. From a secular as well as a spiritual
perspective, this is a matter of stewardship. The impact of what you own
bears upon the future our children and grandchildren will have to
contend with. Whether or not you expect to be held accountable before
God for your use or abuse of the wealth and talents you’ve enjoyed in
this life, the shape the world is left in when you are gone is a
fundamental ethical concern.
Shareholder Advocacy is about using the power of the share, the power of
your investments, to lead companies toward good corporate citizenship.
Owners of shares of common stock have voting rights at the annual
meetings of the companies they own. When was the last time you cast an
informed vote on a proxy ballot? When was the last time you filed a
resolution to appear on such a ballot? Do you even know how you would
begin to do so?
Through an SRI professional, such as Bill Stant of L. B. Stant and
Associates, LLC, an Advisory Representative of Progressive Asset
Management, Inc., the SRI division of Financial West Group, and a
Professional Member of the First Affirmative Financial Network**,
you can learn how to begin making your concerns known to the companies
you own. Through your SRI professional you can link up with the growing
Shareholder Advocacy movement. You are only a few clicks of the mouse
away from taking responsibility . . . See the links below*.
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