Posts tagged with: As You Sow

No! Not the Dark Money!

No! Not the Dark Money!

“Dark money” sounds menacing and foreboding – a financial nomenclature suggestive of gothic masterpieces like “The Raven” and “The Black Cat.” Whereas Poe’s tales actually contain sinister elements, the phrase dark money is employed by activist shareholders much like the villains of countless “Scooby Doo” cartoons devised illusory ghosts, werewolves and vampires. The evildoers wanted to scare those meddlesome Mystery Machine kids from nefarious moneymaking schemes.

The anti-capitalism messages of “Scooby Doo” are repeated by those ominously intoning the perceived evils of so-called dark money in politics. In ordinary political usage, dark money refers to funds raised to finance an election campaign or ballot initiative without any requirement of public disclosure before voters decide the question.

Shareholder activists have torn a well-worn page from the “Scooby Doo” playbook by adopting the tactics of the show’s bad guys. These tactics include attempts to frighten voters with the dark money bogeyman, who lurks behind other pet issues such as genetically modified organisms and fracking (hydraulic fracturing). (more…)

Astute Acton readers more than likely are aware already that U.S. Sen. Dick Durbin (D-Ill.) has fired another salvo in the ongoing battle to silence conservative voices. Durbin joins our progressive friends in the Interfaith Center on Corporate Responsibility and As You Sow – both involved in proxy shareholder resolutions that would force companies to disclose donations to nonprofits – in their attempts to declare lights-out on the American Legislative Exchange Council.

At issue for Durbin is ALEC’s draft legislation called the “Castle Doctrine Act,” based on Florida’s “Stand Your Ground” law. Apparently, Sen. Durbin doesn’t like either, in much the same fashion ICCR and AYS dislike ALEC’s stand on climate-change, genetically modified organisms, Citizens United  and “Castle Doctrine.”

In his letter sent last week to right-of-center and free-market think tanks across the country, Durbin demands “yes or no” answers. The numbered questions below are lifted directly from the Aug. 6 letter sent to the Center of the American Experiment in Minneapolis:

  1. Has Center of the American Experiment served as a member of ALEC or provided any funding to ALEC in 2013?
  2. Does Center of the American Experiment support the “stand your ground” legislation that was adopted as a national model and promoted by ALEC?
  3. (more…)

There has been ample evidence presented in the past several years to suggest shareholder activism exhibited via proxy resolutions not only wastes time but, as well, corporate funds. And yet, unions and “social justice” advocates such as the Interfaith Center on Corporate Responsibility and As You Sow perpetuate the practice to the detriment of targeted companies.

And, according to a recently released study, this activism also works to the shareholders’ detriment as well. In effect, these proxy resolutions shoot the shareholder perpetrators in their own collective foot by reducing the profitability of the companies in which they hold stock – while simultaneously wounding other shareholders who don’t necessarily share the whole leftist/liberal magilla against hydraulic fracturing, free political speech and genetically modified organisms while advocating for network neutrality.

“Analysis of the Wealth Effects of Shareholder Proposals – Volume III” was released by the U.S. Chamber of Commerce’s Workforce Freedom Initiative on May 2. The study was conducted by Navigant Consulting’s Allan T. Ingraham, Ph.D., and Anna Koyfman, whose analysis of proxy resolutions by shareholder activists concludes:

[T]here is no conclusive evidence of measurable improvements in (short-term or long-term) stock market or (long-term) operating performance in target companies as a result of shareholder proposals. Therefore, we find no evidence that shareholder activism has a positive impact either on firms or on the entities offering shareholder resolutions. (more…)

The Dow Chemical Co., along with E.I. Du Pont de Nemours, has come under fire from the Adrian Dominicans and the Sisters of Charity due to the companies’ production of genetically modified organisms.

No, the sisters aren’t mounting the barricades outside the two corporations to protest what they might term “Frankenfoods,” but they have submitted proxy shareholder resolutions to demand, among other things, the companies review and report by November 2013 on:

  1. Adequacy of plans for removing GE [genetically engineered] seed from the ecosystem should circumstances require;
  2. Possible impact on all Dow seed product integrity;
  3. Effectiveness of established risk management processes for different environments and agricultural systems.

According to the As You Sow 2013 Proxy Preview, Harrington Investments – described in the preview as “religious investors” – are pressing Monsanto to provide even more detailed reports by July 2013.

AYS, for its part, is taking on Abbott Laboratories with a resolution seeking the company remove all GMOs from the company’s Similac Isomil infant formula “with an interim step of [requiring] labeling” that Isomil includes GMOs. The resolution reads, in part, that Abbott: (more…)

It often comes to light over matters of disagreement that one side attempts to shut down the debate by emulating Ring Lardner’s father in The Young Immigrants: “’Shut up,’ he explained.” Of course, this isn’t at all a real explanation, but it sure does slam the door on any further discussion.

This disingenuous tactic is witnessed again and again in the climate-change debate. Most notably it appears in the tactics of those who believe the science is settled, a scientific consensus exists and global warming indeed poses a serious catastrophic threat to our planet – as evidenced by a March 7, 2013, webinar conducted by As You Sow for proxy shareholder resolutions.

As You Sow – which says 18 percent of its members are faith-based organizations – seeks to prompt corporate boards in which it owns stock to adopt its view of climate change. One method to achieve this goal is shutting down the debate completely. As noted in its 2013 “Proxy Preview,” AYS and a “very broad coalition of investors is continuing a vigorous initiative to make companies be more transparent about how they spend corporate treasury money on political campaigns and lobbying.” (more…)

Religious groups seeking to serve myriad liberal agendas during the 2013 shareholder proxy resolution season look no further than As You Sow, a group dedicated to “large-scale systemic change by establishing sustainable and equitable corporate practices.”

AYS will unveil its Proxy Preview on March 7. Trumpeted as the “Bible for socially progressive foundations, religious groups, pension funds, and tax-exempt organizations” by the Chicago Tribune, this year’s preview predictably includes such “issues” as hydraulic fracturing; e-waste recycling; waste disposal; and pushing coal-fired utilities to adopt more stringent environmental standards than required by law.

Nowhere does AYS mention companies’ fiscal responsibility to return profits to shareholders. Neither does it mention how adherence to these progressive shibboleths might negatively impact the world’s most economically disadvantaged by reducing corporate profitability. (more…)