SOCIAL TOPICS: HISTORY OF WALDEN ASSET MANAGEMENT/SRI

Published, Spring 2001

       Ultimately, success is not and should not be measured by the quantity of corporate dialogues and shareholder resolutions. What really matters is our ability to have an impact on company behavior. How is Walden making a difference?

       Walden is changing corporate practices. CVS and Longs Drug are phasing out the sale of mercury thermometers because of Walden’s advocacy and technical assistance from Healthcare Without Harm. Mercury, a neurotoxin with extremely harmful effects on fetal and child brain development, is at dangerous levels in water bodies across our nation. While good alternatives to mercury thermometers exist, they are still a significant contributor to mercury pollution via municipal and medical waste.

       On the international front, Walden helped focus public and media attention on unfair labor practices of a French building materials firm, Imerys, by having a union delegate represent our concerns at its annual meeting. Subsequent increased scrutiny of Imerys led the firm to back down from an aggressive posture against union organizing at an Alabama plant, and ultimately aided the union in winning certification.

       Walden is changing company policies. When companies commit themselves publicly to new goals and policies, improved practices will often ensue. After leading a large coalition of institutional investors in a multi-year dialogue with Coca Cola about its lack of commitment to use recycled plastic in its plastic beverage containers, the company pledged to incorporate 2.5 percent recycled plastic content in its bottles. While indeed a modest step, this is an important starting point and Walden, the Grass Roots Recycling Network, and others continue to urge Coca-Cola to raise the standard. Walden also works with the Equality Project to target companies for dialogue on including sexual orientation in their non-discrimination policies. American International Group (AIG) agreed to amend its policy as requested, prompting Walden to withdraw its resolution.

       Walden is promoting greater corporate transparency. Walden believes that information is powerful. If meaningful, reliable, and comparable information is available and accessible —regardless of the issue—then companies will be accountable to the public and consequently will strive for continuous improvement. MBNA agreed to release comprehensive equal employment opportunity (EEO) data for the first time and took the extra step of posting it on its web site. Bank of America also has pledged to provide EEO data to investors beginning this year. Lehman Brothers shared with us its internal standards for ensuring that it does not securitize predatory loans. We have urged Lehman to make their standards more widely known, which would serve as a basis to encourage others in the business to follow suit.