ICCR and SGI: Shareholders Committed to the Rights of Immigrants

Four SGI members participated in ICCR‘s Spring Conference: Sr. Ruth Battaglia, C.S.A., Chris Cox, Frank Sherman, and Friar Robert Wotypka, O.F.M., Cap. This post from Sr. Ruth is another report of what we heard and learned at the conference.

The Congregation of the Sisters of St. Agnes has a strong connection to immigrant communities and their needs. The congregation was founded in 1885 in response to the faith needs of German immigrants in Wisconsin. When Hmong, who were allies of the United States in Southeast Asia during the Vietnam War and later stages of the Laotian Civil War, started seeking asylum as political refugees after the communist takeover in both nations in 1975, the Sisters of St. Agnes were instrumental in welcoming them and helping them resettle in Fond du Lac, WI. Today, sisters in Arizona provide legal aid and other forms of assistance to the immigrant population along the Naco border with Mexico. Recently the congregation has been advocating on behalf of Dreamers and for a just US immigration policy. They are pleased to join ICCR’s effort to invite companies to look at their policies and practices around immigration.

ICCR believes that just and equitable immigration policies are critical to a stable and prosperous business environment and will promote sustainable communities. At its recent conference in New York, an ICCR session was devoted to the topic of immigration. While some companies claim that immigration does not affect them, they need only look down their supply chain to discover how immigration impacts them. They also will discover that immigrants are very vulnerable to injustices.

In engagement with companies on immigration investors must ask:

  • Who is responsible for corporate risk oversight on labor/immigration issues?
  • What risks face immigrant workers? Are all workers covered by company policies on worker health and safety, fair wages, benefits? Do workers have a way to report grievances without fear of retaliation?
  • How does the company assess engagement with the community when it hires immigrant labor, addressing fears, reducing tensions? How does it relate to ICE? If the number of immigrants decline, where will the company look for qualified employees?
  • What are the company’s public policy positions on immigration? Does it publicly support comprehensive immigration reform? Is it supportive of the “Agricultural Worker Program Act” which was introduced in Congress to provide a path to lawful permanent residency for agricultural workers?

One breakout group grappled with guidelines for companies that rely on immigrants in the workforce (beauty, agriculture, textiles, farm-workers) asking them to prohibit passport retention, exactment of fees, harassment and discrimination. Also, the group suggested asking companies to provide contracts and to grant the right to assemble and to bargain collectively. Another group asked, “What is the role of investors in tech companies and airlines who are involved in immigrant surveillance?” And another dealt with the question “Who finances the harm?” Can the financial sector engage in pro-immigrant practices?

It was evident that this newer area of endeavor for ICCR, while complex and involving hard work, was well received by conference attendees ready to accept the challenge of engagement with companies on behalf of immigrants. In accord with a strong theme of the conference, it would be a collaborative effort with immigrants whose voices and experience would shape the efforts.

In February Seventh Generation hosted a very informative webinar, Immigration and the Shareholder. Check it out. https://seventhgenerationinterfaith.org/2018/02/17/sgi-webinar-recording-immigration-and-the-shareholder

Sister Ruth Battaglia is the Justice, Peace and Integrity of Creation Coordinator for the Congregation of Sisters of St. Agnes.

Introducing SGI’s 2018-2020 Strategic Plan

Dear SGI members and friends,

On behalf of the SGI Board, I am proud to present the SGI Strategic Plan for 2018-2020.  This marks a renewed beginning for us as an organization and a structural shift from a “founder-focused mission” to a “member-led coalition.”  We embrace the same passion, focus and values as our founders.  We will continue Fr. Mike’s legacy and mission to “bring Good News to the poor and the planet.”  We will work collaboratively with “ICCR and others to improve corporate decision-making and public policy on environmental, social and governance issues.”  We created the path for our future.  We welcome you to join with us, promote SGI and participate fully in this mission.

 

Faithfully,
Dan Tretow
Board President

FSPA takes CSR to court

When we saw a recent article (Wisconsin groups to get $12M settlement for natural gas price fixing) from the La Crosse Tribune quoting Sr. Sue Ernster, FSPA, we wanted to bring it to the attention of our SGI members.  Sr. Sue adds:

FSPA participated in the lawsuit of the manipulation of natural gas pricing by multiple utilities as another way of how we live out our social justice activities and our values.  We see this as an effort to help those whose voices are not represented in this and other situations.  We are utilizing the resources we have at our disposal to hold those accountable who were responsible for this price manipulation.

Our hope is that participating in litigation settlements such as these, as well as filing shareholder resolutions with companies, demonstrates that people are paying attention, asking questions and holding them accountable for their actions.

SGI Board Elects New Officers

The Seventh Generation Interfaith Board of Directors elected new officers for the 2018 calendar year. Dan Tretow (School Sisters of St. Francis), formally Treasurer, has stepped up to become President. Sister Sue Ernster (Franciscan Sisters of Perpetual Adoration) was elected to take the Treasurer position and Peg Groth (Sisters of the Sorrowful Mother) has agreed to serve as Secretary. The Officers deal with the administrative duties of the coalition and act as a sounding board for the staff. The membership is grateful for these volunteers for their service on behalf of the membership. Please join me in congratulating our new Officers.

The Board is thankful to Mark Peters (Priests of the Secret Heart) and Sr. Ruth Geraets (Presentation Sisters, Aberdeen, SD) who served as President and Secretary for the past two years for their service and commitment to bring good news to the poor.

Frank Sherman, executive director of SGI, wrote this post.

Investors say executive pay packages at pharma may incentivize drug pricing risks

Today, the ICCR published a press release about resolutions filed with five U.S. pharmaceutical companies. SGI members are co-filers on each of the five resolutions. These resolutions are important components of SGI’s activity this year in health. The resolutions can be described as tools to gain insight into how executive compensation aligns with the values, vision, and business strategy of the companies.

This post will be updated with media coverage:

The press release is shared in full below.

Investors say executive pay packages at pharma may incentivize drug pricing risks

DATE:
Dec 13th 2017

In resolutions at five U.S. drug makers, investors request a review of compensation policies that may drive senior execs to ignore the long-term business risks of skyrocketing drug costs.

NEW YORK, NY, Wednesday, December 13, 2017 – Investors today announced they have filed resolutions at five major pharmaceutical companies asking for information about how well executive pay incentives mitigate long-term financial risks associated with mounting public concerns over the affordability of prescription medicines.

The investors are all members of the Interfaith Center on Corporate Responsibility (ICCR), a shareholder coalition that has been engaging the pharma sector for decades on drug access and affordability. In the resolutions, the investors argue that an executive compensation incentive program reliant on revenue growth solely from drug price increases is a risky and unsustainable strategy.

The resolution specifically requests a report on the extent to which risks related to public concern over drug pricing strategies are reflected in executive compensation policies, plans and programs. Read the full resolution text here. The five companies receiving the resolutions are Abbvie, Amgen, Biogen, Bristol Myers Squibb, and Eli Lilly. ICCR members also filed a separate but similar resolution at Pfizer and Vertex requesting a report on the business risks from rising pressure to contain U.S. prescription drug prices.

“As investors in these companies, we are concerned that misaligned incentive pay may encourage executives to sacrifice long-term, organic growth from drug discovery for short-term, ‘quick fix’ strategies that may pose business risks,” said Meredith Miller of the UAW Retiree Medical Benefits Trust.

Public anxiety over drug prices has soared in recent years as millions of Americans struggle to afford the essential medicines needed to maintain their health. Scandals over excessive price hikes at several pharma companies have made the pharma industry the target of Congressional hearings, law suits, denials of coverage from insurers and ballot initiatives in several states which would force manufacturers to negotiate the prices of key medicines with government agencies such as Medicare and Medicaid.

Against this backdrop, the investors say, companies need to prove to their investors and to the public that they are doing everything possible to control drug prices in order to manage business and brand risk. The investors view executive incentive programs as a governance tool designed to ensure adequate oversight of risk and alignment of corporate strategies with mission.

Said Donna Meyer of Mercy Investment Services, “The increased scrutiny around drug pricing and how it is being managed by pharma management has had reputational consequences for the entire industry. Our resolution request is very straightforward: an evaluation of how these concerns are being integrated into corporate governance structures. To the degree that executive incentives reflect a company’s mission and growth strategies, this is clearly a critical and material issue for investors.”

“Our goal is to better understand what oversight these pharmaceutical company boards are exercising when executive incentives are tied so closely to profits,” said Cathy Rowan, who represents Trinity Health as a member of ICCR. “When these profits appear to be derived wholly from price hikes, it raises concerns among those of us who care about access to, and the affordability of, medicines — particularly for vulnerable populations like women, children and seniors.”

Investors are expected to vote on the resolutions at each company’s 2018 annual meeting of shareholders.

SGI Webinar Recording: Navigating the ICCR and SGI Websites

During our November member meeting, we announced our plan to conduct quarterly webinars to educate SGI Members on ICCR issues and processes. At the time, we agreed to start with an orientation of ICCR’s and SGI’s websites. We were fortunate to have Julie Wokaty of ICCR join us to give us a tour of ICCR’s website and Chris Cox to do the same for SGI’s website.

A recording of the webinar can be found here. The slides from Chris’ presentation on using social media for corporate social responsibility are here.

We will maintain an index of webinars and links to the recordings on our Resources page.