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Jesuit-led movement advocates Chevron human rights

Monday, June 02, 2008 Jesuit-led movement advocates Chevron human rights

(May 28) SAN RAMON, CA – The Jesuit led HUMAN RIGHTS resolution received a strong 24% vote at Chevron’s annual stockholder meeting. For the past four years, Jesuits and religious investors have engaged Chevron Corporation (CVX) on the need to develop a comprehensive, transparent and verifiable human rights policy to deploy throughout the 180 countries where they operate. The National Jesuit Committee for Investment Responsibility (NJCIR) with the support of the US and English Canada Jesuit Provincials, have focused on Human Rights as a core area of shareholder advocacy. This issue coincides closely to Jesuit apostolic concerns regarding the marginalization of Africa, the rights of indigenous people, economic justice and conflict & violence.

Led by the Wisconsin Province, this growing movement with Chevron now includes 30 institutional investors including every Jesuit province mentioned above, Creighton University, University of San Francisco and Gesu Parish (Milwaukee). In addition, many other religious congregations and two Catholic healthcare networks have filed their support. Along with Chevron, Jesuit provinces are also leading corporate dialogues with Monsanto (Missouri Province), Bristol Myers Squibb (New York Province), Occidental Petroleum (California Province) and OM Group (Detroit Province). Chevron is the only Jesuit-led resolution that went to shareholder vote this year.

Proponents appreciated the opportunity to interact with Chairman David O’Reilly and other Chevron board members before the meeting and also noted Mr. O’Reilly’s signal that Chevron is committed to the human rights dialogue with shareholders.

The shareholder coalition acknowledges some hopeful Chevron human rights initiatives over the past year, such as additional training, development efforts in the Niger Delta and the inclusion of a human rights statement in the Business Code of Conduct. However, Wisconsin Provincial Tom Krettek, S.J. maintains, “We believe the Company’s various human rights activities would achieve greater impact as a comprehensive policy with specific objectives, time frames, management accountability, performance metrics, guidelines, evaluation and reporting procedures for operating in high-risk environments.”
 
In her remarks at the annual meeting, Jesuit consultant for Socially Responsible Investing, Ms. Anna Bradley, referenced the work of UN special representative on Human Rights and Transnational Corporations, Dr. John Ruggie, “Companies need to adopt a human rights policy.
Broad aspirational language may be used to describe respect for human rights, but more detailed guidance in specific fundamental areas is necessary to give those commitments meaning.”  

Speaking in support of the Jesuit Human Rights resolution at the annual meeting, Fr. John P. Fitzgibbons, S.J. (University of San Francisco – USF – Vice President for Administration and Dean of the College of Professional Studies) referenced a recent USF law school symposium The Future of Corporate Accountability and Oversight which included panelists from extractive industries, investors and advocates from the crossroads of business and human rights. Fr. Fitzgibbons noted that the sustained and sizeable support for the resolution demonstrates that “the investment community is awakened to human rights and anticipates action and leadership from the board.”

While religious investors are clearly motivated by the humanitarian concerns, they must make a convincing fiduciary case to implement policy change on the corporate level. To this end, the resolution again received the support of two of the major proxy advisory services, Institutional Shareholder Services and Proxy Governance. Jesuit Conference Policy Director John Kleiderer adds, “This is not only the right thing to do, but it’s smart business. A human rights policy will address threats to shareholder value before they arise.” Furthermore, the list of co-filers has steadily grown over the years.

The energy sector is under mounting scrutiny for human rights practices. Increasingly, oil and gas resources are located in conflictive, repressive and deprived locations which can make operating environments more volatile. Only two weeks ago, a consumer campaign was launched against the French oil and gas company TOTAL, referencing human rights abuses, revenue transparency concerns and social-environmental impacts.  

The coalition also maintains that the establishment of a Human Rights policy will improve Chevron’s social license with host communities and position the company as partner of choice for all stakeholders.

John Sealey (Provincial Assistant for Social and International Ministries, Wisconsin province) added that Jesuits and co-filers will continue to press the company. “This effort is simultaneously in Chevron’s long-term interest as well the host communities who shoulder the costs but rarely realize the rewards of petroleum wealth. We are particularly grateful for the support of so many religious investors who bring such insight and on-the-ground perspective to our conversations with the company.”

NJCIR chair Fr. Mark Hallinan, S.J. (Provincial Assistant for Social Ministries, New York Province) offers a vision for the work ahead, “We hope that Chevron will work with us to transform their current human rights statement into a policy that will be fully integrated into all company operations.”