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October 04, 2005
ICCR Online Database Eases Access to Information on Shareowner Resolutions
by William Baue
EthVest, the new web-based tool from the Interfaith Center on Corporate Responsibility, provides
access to 2,000-plus shareowner resolutions and 12-plus years of shareowner action.
SocialFunds.com --
When the Interfaith Center on Corporate Responsibility (ICCR) first started coordinating shareowner activism more than
thirty years ago, shareowner resolutions addressing social, environmental, and corporate governance
issues were an obscurity on the corporate proxy ballot. Shareowner activism has gained a much
higher profile in the intervening three decades, especially since the US Securities and Exchange
Commission (SEC) recently started requiring all
mutual funds to disclose their proxy voting records every August. With resolutions in the
spotlight, what better time to facilitate the process of tracking resolutions, which until now has
been extremely arduous?
 ICCR is doing so with the launch of
EthVest, a subscription-based online database containing the full text of 2,000-plus shareowner
resolutions filed by ICCR members in the last dozen years, as well as related information.
"From my experience, there is an increasing interest in the so-called 'social resolutions' and
what is happening in the SRI field in general," said Pat Wolf, executive director of ICCR, a
coalition of 275 faith-based institutional investors and socially responsible investing (SRI) firms
with $110 billion in assets managed. "I think EthVest can inform decisions on proxy voting and
encourage subscribers to ask their mutual funds about how they voted on different issues."
While SRI mutual funds tend to sponsor and vote in support of social, environmental, and
corporate governance resolutions, recent studies of mainstream mutual fund voting records reveal
much rubber-stamping of corporate management recommendations to oppose resolutions. One goal of
EthVest is to provide the information necessary to counteract such complacency. The inspiration
for EthVest also grew out of the convergence of in-house technological developments and external
demand for information.
"In June 2004, ICCR completed the development of an online
interactive database for shareholder activity and housed it within the member section of our
website," Sister Pat told SocialFunds.com. "Our members can sign up to file shareholder
resolutions, enter pertinent data regarding any challenges to resolutions at the SEC, and so
forth--for our members it creates timely and accurate information about their work."
"At
the same time ICCR was receiving many phone calls regarding the history of shareholder activism;
the role of the faith community in it--for example, requests from reporters regarding the number of
resolutions filed in a given year and how that compared to previous years and who was filing the
resolutions," said Sr Pat. "It occurred to us that much information was available on our database
but not available to the public."
Those who have tried to find accurate, timely, and
comprehensive information on shareowner resolutions know how difficult the task can be. Currently,
ICCR's website posts information on resolutions filed by its members dating back to the 2000-2001
proxy season, while EthVest extends back to 1993-1994. Furthermore, when similar resolutions are
filed at multiple companies, ICCR's website links to a generic version of the resolution, whereas
EthVest contains the exact resolution as filed with each company.
In addition to enhancing
accuracy, EthVest also enhances timeliness.
"Whereas ICCR posts resolutions on the website
just prior to the proxy voting season, EthVest makes the resolution text available once the
resolution is actually filed and received by the company," said Sr. Pat.
After shareowners
vote on resolutions at corporate annual meetings, EthVest tracks vote tallies.
"We post
the unofficial vote tally on EthVest as soon as we get it from the filer, usually the day of the
meeting," said Sr. Pat. "Then we go through a definitive process to make sure that the final vote
we post is accurate."
EthVest subscribers can also opt to receive email alerts of
developments in shareowner action based on selection criteria, such as the issues addressed by
resolutions, resolution filers, or target companies. Subscription rates vary from $2,500 for
corporations, financial analysts, university endowments, and other like organizations to $1,000 for
nonprofits.
"We recognize that the needs of students and media are unique and we are
prepared to address their needs as well," Sr. Pat added.
©
SRI World Group, Inc. All Rights Reserved.
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