Say it ain’t so, Joe

We are grateful to Andrew Behar, CEO of As You Sow, who has shared this excerpt from his 2016 book, The Shareholder Action Guide, for our series remembering Fr. Mike Crosby and fifty years of SGI.

It goes without saying that a chorus requires more than one voice, so allying yourself with an existing community of like-minded people has obvious advantages. For years, churches and faith-based organizations have been very active in issues of social justice, and those issues have often touched upon corporate behavior. It was through his religious order that Reverend Michael Crosby took on the tobacco industry starting in the 1970s.

Reverend Crosby probably doesn’t fit the expected profile of a shareholder advocate. He’s a Catholic priest at the Province of St. Joseph of the Capuchin Order. In the late 1970s, Crosby was visiting Nicaragua, where his order had a mission, and he couldn’t help but notice how the countryside was plastered with billboards extolling the glories of the revolution and its leader, Daniel Ortega. “I had kind of a distinct reaction,” Crosby said. “How can people be so influenced by such propaganda?”

Soon after his visit to Nicaragua, Crosby was at another mission in Costa Rica. The road to the airport there was lined with billboards, too, but these were quite different. “One billboard after another advertised this and that, and a huge number were cigarettes,” said Crosby, a recovering three-pack-a-day smoker.

The billboards in both countries touted different things, but the campaigns were similar. “All of a sudden it hit me that both were propaganda. In the United States and throughout the world in the market economy, it’s ‘buy, buy, buy.’ What is the difference between one revolution and the other?”

Crosby decided to start something of a revolution of his own. When he returned to the United States, he asked his treasurer to buy ten shares of R.J. Reynolds Tobacco and ten shares of Philip Morris. The small ownership stake was enough to give the order standing to attend the corporations’ next annual general meetings and to file shareholder resolutions if necessary.

When he studied the demographics of smoking, it became clear to Crosby that the majority of smokers begin the habit when they were in their teenage years—just as he had. Father Crosby refined his focus and efforts on addressing the impact that cigarette advertising had on young people.

The Marlboro Man, the peppy models for Virginia Slims with their slogan “You’ve come a long way, baby,” and the defiant Tareyton smokers who would rather fight than switch, were arguably created by Madison Avenue “Mad Men” in the 1960s to appeal to adults.

But what about Joe Camel, the lovable cartoon dromedary who touted R.J. Reynolds’s Camel brand in magazine and billboard ads? Created in 1974 and first used in French ad campaigns, Joe Camel appeared in the United States starting in 1988. Although he lacked a hump, Joe Camel had attitude to spare, and he had lots of leisure time, too. He rode a motorcycle, played pool, and hung out in a hot tub with bikini-clad babes. In short, he did everything an adolescent boy longed to do. Oh, and a Camel cigarette always dangled from his lip.

Talk about swagger. Did he have a face that could pretty easily be confused with parts of the male anatomy? Would advertisers stoop so low? It’s a matter of debate. Google “Joe Camel images” (as we could not get the rights to publish a picture of Joe in this book), and you decide.

Of course, only a cynic would suggest that Joe Camel’s mission was to recruit younger smokers to take the place of the ones dying by the thousands of lung cancer and emphysema.

Crosby focused particularly on R.J. Reynolds, and unfortunately for them, the barrage of publicity, lawsuits, and the shareholder resolution brought by Crosby’s group and by others brought a lot of attention to the matter of youth smoking, including a 1991 study in the Journal of the American Medical Association that showed that as many six-year-olds knew that Joe Camel was linked to tobacco as knew that Mickey Mouse was tied to Disney.

R.J. Reynolds doesn’t inspire the same affection as Disney, and Crosby had it out for Joe Camel, just as he would for a drug dealer hanging around the candy store.

“We generated a tremendous amount of publicity about Joe Camel and its appeal to youth,” said Crosby. “Ultimately, we were one of the voices that got Reynolds to stop. Then we found out they were doing it abroad, and so we filed shareholder actions internationally, and they stopped. That was a big campaign with a significant result.”

Crosby’s campaign against the detrimental health effects of tobacco continues to the present day and has included shareholder resolutions, negotiations, public demonstrations, legal action, political lobbying, and more. Crosby’s order has gone on to file numerous resolutions on the issue of green tobacco sickness, human rights, and the exploitation of workers. It turns out there’s a strong association between youth viewing characters in movies who smoke and their own initiation of smoking. So Crosby and ICCR, along with As You Sow, initiated a shareholder engagement to get Hollywood studios to give an “R” rating to all movies with smoking imagery—a practice that would save 1,000,000 lives, according to a 2012 Surgeon General report and backed up with CDC data.i

i “Smoking in the Movies,” Center for Disease Control and Prevention, http://www.cdc.gov/tobacco/data_statistics/fact_sheets/youth_data/movies/

Remembering Fr. Mike

By Cathy Rowan, Director of Socially Responsible Investments for Trinity Health

In celebrating SGI’s 50th Anniversary, I am grateful for the years of working with and learning from one of your founders, Rev. Mike Crosby.

In the mid-1990s, when I began participating in the ICCR conferences, I did not know Mike well, but knew him as the person who was always busy typing during the meetings. He produced extensive summaries of all the conference sessions, for the benefit of all the regional coalitions for responsible investment. No one had asked him to do that; it was one of his many ways of faithfully serving others.

Tobacco is a priority issue for Trinity Health, for whom I started working in 2003, and Mike helped and welcomed me in engaging tobacco companies, working to change their marketing practices – with a vision of ultimately transforming those companies to stop selling cigarettes – and in engaging the parent companies of movie studios, to eliminate the depiction of tobacco in youth-rated films.

Mike’s own past experience as a smoker, his sensitivity to the overwhelming marketing of cigarettes to recruit new smokers, plus his faith that does justice were what drew him to take on the issue of tobacco and corporate responsibility.

His work was often questioned by those involved in the tobacco control movement: “Why would you engage with tobacco companies?” His reply: “Why wouldn’t you?”

Mike’s thinking was that if one person’s life could be saved, if one young person decided not to start smoking because the dangers of secondhand smoke were attended to, and incessant marketing to young people was stopped (e.g. Joe Camel or via the portrayal of smoking in movies), he had to engage the companies as a shareholder.

What impact has his work had? Well, for one, we no longer see Joe Camel ads. His efforts to stop the advertising, marketing and selling of cigarettes using the terms ‘light’ or ‘ultra-light’ contributed to the Food and Drug Administration’s 2010 rule banning the use of ‘light’, ‘mild’ and ‘low’ on cigarette packaging. All the parent companies of major studios have policies to limit the depiction of tobacco in youth-rated films, with Disney banning tobacco depictions in all its movies.

Mike’s shareholder advocacy was grounded in human rights. His concerns around tobacco extended to the working, living and health conditions of tobacco farmworkers. He heard about green tobacco sickness – which can occur when farmworkers absorb nicotine through the skin as they come into contact with the leaves of the tobacco plant, causing nausea, vomiting, headaches, dizziness – from Sisters in Kentucky for whom he was giving a retreat. He took the issue to the Altria CEO, who said he never heard of this occupational poisoning.

His initiative led to all the major tobacco companies adopting polices that take into account the health and the working conditions of farmworkers. The resolutions Mike crafted around human rights led to the creation of a multi-stakeholder effort, the Farm Labor Practices Group — companies, labor, government and investors – working to promote worker and human rights in agriculture.

Mike witnessed to Life before an industry whose products produce so much sickness and death. We will never know how many lives have been saved – thanks to his decades of shareholder advocacy.

He is still mentoring me, and cheering us all on as we continue his work.

This reflection is part of a series to observe SGI’s 50th anniversary. On September 12, 2023 Seventh Generation Interfaith Coalition for Responsible Investment (SGI-CRI) will hold its annual conference. This year’s theme is Celebrating 50 Years: The Evolution of Responsible Investing. Learn more here.

Pay and Wealth Disparity: Still our greatest social challenge

By Frank Sherman

Sister Sue Ernster’s (Franciscan Sisters of Perpetual Adoration) proposal on racial equity & starting pay at the Walmart AGM earlier this week obtained strong shareholder support for a first-time resolution (12.5% of total shares or 27% of independent shares voted). Congratulations to Sue and the many ICCR co-filers.

I’m reminded of Father Mike Crosby’s 2015 campaign on income disparity. At that time, President Obama called the growing pay & wealth gap in our country “the greatest social challenge of our time“…. and it hasn’t gotten better since then. We didn’t get very far back then after the SEC’s sided with the companies, permitting them to omit our proposal from the proxy based on the “ordinary business” exclusion.

Starting in 2011, the Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010 required companies to include disclosure of the total compensation of the top 5 paid executives in their annual proxy statements. Shareholders are allowed to cast a non-binding advisory vote for or against these pay packages (“say-on-pay”). Very few companies “failed” their say-on-pay vote in recent years. A failure occurs if the company does not obtain majority support from shareholders for the executive compensation proposal.

The tide may be shifting. Twice as many say-on-pay proposals failed this year as in previous years, including some companies that had never had a failure in these resolutions. As You Sow’s Rosanna Landis Weaver does great work digging through the fine print of the “Compensation Discussion and Analysis” section of each company’s proxy statement with an annual report on the 100 Most Overpaid CEOs. A recent NEI article on CEO compensation (A Promising Start To The Challenge Of Excessive CEO Pay) notes that support for pay packages among S&P 500 firms fell to an average of 87%, down 3 percentage points from 2020 and 2019, and down 4 points from 2016 to 2018. It references a report from the Institute for Policy Studies (Pandemic Pay Plunder: Low-Wage Workers Lost Hours, Jobs, and Lives. Their Employers Bent the Rules – to Pump up CEO Paychecks) which found that 51 of the S&P 500 firms with the lowest median worker wage revised their pay rules in 2020, so that median worker pay fell 2%, while CEO pay rose—by 29%.

Investors pushed corporations to tie their pay packages to stock performance (…to better align management pay with investor returns) in the early ’90s. Little did they know that this would be used by companies to successively ratchet up CEO, and as a result, the rest of management’s, comp packages every year to a level that makes U.S. CEOs stand out on the global stage.

The Dodd–Frank Act also required companies to disclose the ratio of CEO compensation to the median compensation of their employees. The rule has only been in effect since 2017, but the SEC allows companies “substantial flexibility” in the calculation of the ratio, making it difficult for investors and society to make meaningful comparisons.

Of course, CEO’s know that their pay relative to the median pay of their workers is out of control. But even if they wanted to change this (and I’m not sure many “want” to do so), they are reluctant to be a first mover on restructuring pay because it would “negatively impact retention and make them less competitive”.

As we complete the next draft of SGI’s strategic plan and think about our engagement focus for the 2022 season (which starts this summer), I believe pay disparity has to be high on our list. I hope you concur.

MCRI merges with SGI Coalition for Responsible Investing

By Barbara Jennings, CSJ

After two years of discussion about the best path forward, the St. Louis-based Midwest Coalition for Responsible Investment (MCRI) merged with Milwaukee-based Seventh Generation Interfaith (SGI) coalition to make both organizations stronger. 

MCRI began in 1977 focusing on the issue of the day:  South African apartheid. Michael Crosby, OFM Cap, the founder of SGI, visited St. Louis to explain the process of shareholder engagement and encouraged the formation of a regional socially responsible investment coalition.  Several Catholic institutions in the area decided to form MCRI. Other connections between St. Louis and Milwaukee:  beer towns, Midwest agriculture, defense industry, and racial disparity. 

MCRI joined the Interfaith Center for Corporate Responsibility shortly after it was formed. This connected us to many Catholic religious’ women and men congregations, as well as to representatives of other faith traditions.  We expanded our tactics beyond the traditional “negative screens” (e.g. no weapons, tobacco, gambling, birth control) to include corporate engagements, proxy voting and shareholder meeting attendance.

MCRI’s first resolution in 1978 asked McDonnell Douglas to build up its commercial business over military contracts which were dependent on foreign policy and regional conflicts. The proposal was presented by Sr. Mary Ann McGivern, SL. From that auspicious beginning, the work of MCRI expanded. By 1980, MCRI had thirteen institutional members. That same year, the coalition sponsored a local conference entitled “Corporate Responsibility: Why the Churches Must Be Involved.”  It was well attended by both treasurers and social justice representatives.       

Under the leadership of Susan Jordan, SSND, MCRI’s issues expanded to include nuclear waste (Union Electric, now Ameren), foreign military sales (General Dynamics, McDonnell Douglas/Boeing), and agricultural pesticides and GMO’s (Monsanto, now Bayer).  Other issues on which we engaged companies on were infant formula in Central America, AIDS medication from the pharmaceutical industry, and labor slavery in various supply chains.   

By 2007, Barbara Jennings, CSJ, who had been on MCRI’s Advisory Committee in the 1990’s, became the Executive Director of MCRI.  The issues at ICCR had grown tremendously, almost too much so that the saying at ICCR meetings was “We never met an issue we didn’t like.”  In 2015, ICCR adopted a human rights lens to all its’ work. Priority issues included climate change, human trafficking / labor rights, water stewardship and food justice.

MCRI continued to work with Ameren concerning their disposal of coal ash. A 2018 resolution received 53% vote, a rare majority for a shareholder resolution!  The coalition worked with Monsanto for several years on water issues. The company now uses low drip and recycling of water in their labs after a 2010 successful withdrawal of a resolution. After many years of engagement with Boeing, the company hired a third party auditor to delve into their supply chain for labor infringements.     

So, the work will go on….and with a more supportive business atmosphere than in 1977.   What has changed?   A greater awareness of the risks posed by climate change? Recognition of the liability posed by pollution?  Understanding that companies can outsource manufacturing but not the responsibility associated with it? The internet and social media together with increased societal expectations has placed more responsibility on corporations to account for their environmental and social impacts.

Each of the nine MCRI members (SSND, GSPMNA, CSJ, CPPS, OSU, SJ, SM, CSJ Congregational Center, and JAG Capital Management) will continue in corporate engagements as part of SGI’s coalition. I ask that you please stay active to bring the faith-based investor voice to corporate board rooms.

As for me, I have joined the SGI Board of Directors and will continue to remain active in this work. I was proud to be part of this journey and thank you for your support. 

Fr. Mike Crosby receives ICCR Legacy Award

On September 28, Fr. Dan Crosby, O.F.M. Cap., accepted ICCR’s Legacy Award on behalf of his brother and SGI’s founder, Fr. Mike Crosby, O.F.M. Cap., together with Sr. Patricia Daly, O.P., Tri-State Coalition for Responsible Investment.  The event was held at New York’s historic Riverside Church.  Fr. Dan Crosby accepted his brother’s award with humility and gratitude in the same way Mike approached his work. “The corporate executives whom Mike engaged always respected him because he was never trying to attack them,” he said. “He was just trying always to speak the truth in love.”

ICCR informed Fr. Crosby that he was receiving this year’s Legacy Award shortly after he began hospice treatment last June.   Fr. Mike shared at the time, “I want to finish my remarks with a word to the young people in the audience. You are the ones that inspired me to do this work. It was for you and future generations that inspired me. It is now your turn to carry this work forward to bring good news to the poor and God’s creation. God bless you all.”

Donations in honor of Fr. Mike Crosby

We have received inquiries about how a person might honor Fr. Mike Crosby, O.F.M., Cap., who passed away on August 5th. ICCR, for example, has encouraged its members to donate to SGI, and we are grateful for the support. They wrote:

Many of you know that Mike was instrumental in helping to recruit Catholic congregations into the ICCR fold and organizing them under regional coalitions for responsbile investment or “CRIs”. Mike himself was the Executive Director of the Midwest CRI also known as the Seventh Generation Interfaith CRI.

Seventh Generation Interfaith CRI is a 501(c)(3) public charity almost entirely based on member dues. If you would like to contribute to its mission in memory of Fr. Crosby, please, make your tax deductible check out to Seventh Generation Interfaith Inc. and send it to the following address:

Seventh Generation Interfaith Coalition for Responsible Investment
1015 N. 9th Street
Milwaukee, WI 53233

“Well done, good and faithful servant”

With sadness, we share the news that Fr. Mike Crosby, O.F.M., Cap. has died. In December of 2016, a CT scan and subsequent testing resulted in a diagnosis of cancer of the esophagus. In April, just after Easter, Fr. Mike underwent surgery after a course of radiation treatment and chemotherapy. While the initial prognosis looked positive, another CT scan in June revealed that the cancer had returned with force, and Fr. Mike entered hospice care in Detroit early that month.

Michael Crosby died on 5 August 2017 at the age of 77, after suffering with cancer.

Michael Crosby was born on 16 February 1940, the son of Hugh and Blanche Crosby of Fond du Lac, Wisconsin. He was invested in the Capuchin Order on 31 August 1959, perpetually professed his vows on 1 September 1963, and was ordained on 6 October 1966.

A writer and speaker, Michael was also the executive director of the Seventh Generation Interfaith Coalition for Responsible Investment, which focuses on social ministry and activism through investment. Michael did pastoral ministry at St. Elizabeth Parish (now St. Martin de Porres Parish) in Milwaukee from 1968-1973. From 1973 until his death, Michael ministered in the area of corporate responsibility. Additionally, he was a collaborator for the canonization cause of Capuchin friar Solanus Casey.

Michael is survived by his brother Daniel (also a Capuchin friar), as well as his many Capuchin brothers with whom he lived, prayed and ministered during the past 58 years.

Visitation:
Thurs., Aug 10: St. Bonaventure Monastery, Detroit, 5-8 pm,
with service at 7 pm.

Friday, Aug 11: St. Francis Parish, Milwaukee, 5-8 pm, with service at 7 pm

Liturgy of Christian Burial:
Sat., Aug 12, St. Lawrence Seminary, Mt. Calvary WI; 10:30 am, with viewing beforehand.

Burial in Capuchin cemetery, Mt. Calvary WI

Fr. Mike’s reflections, and those of his brother Fr. Dan, are found on a Caring Bridge site.