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basic Linking Our Investments To Our UU Values Sponsored by the Powered By Docstoc
					 Linking Our Investments
    To Our UU Values
Sponsored by the UUA Committee
on Socially Responsible Investing

        Basic Workshop
Committee on
Socially Responsible Investing
Established by the UUA Trustees in 2001:
     • Joan Cudhea, Chair
     • Lucia Santini-Field, Chair UUA Investment
       Committee
     • Diane Olson, UUA Moderator and Trustee Liaison
     • Jim Gunning
     • Stephanie Leighton
     • John Keller
     • Pam Allen-Thompson, Board Liaison
     • Susan Leslie, Staff Liaison, Congregational
       Advocacy and Witness
     • Larry Ladd, UUA Financial Advisor, Ex-Officio
     • Jerry Gabert, UUA Treasurer, Ex-Officio
                                                        2
Your Presenters

   Fill in names here




                         3
Socially Responsible Investing
What Is It?


      Bearing witness with our
            investments,
        based on our values


                                 4
Why Social Investing?
   Demonstrate faith in action
       Tailor to fit your priorities
   Increased leverage for social change
       Your parish will make a difference
       You can make a difference
   Elimination of financial and fiduciary
    obstacles
   No compromise on financial return
                                             5
Where Are You in the Process?
   Just learning?
   Involved with SRI as an individual?
   Trying to get congregation interested?
   Trying to determine options?
   Talking to your/a financial advisor?
   Considering action or needing process help?
   Getting resistance or acceptance at church?
   Ready to act?
   Already engaged in the process?


                                                  6
Our Presentation Today

   Four Aspects of SRI: The Basics
   How Can Your Congregation UUA
    Screens and Social Activism




                                      7
Four Aspects of SRI
Four Aspects of SRI

#1 Screening Investments in your
     Portfolio
#2   Voting Shares Owned
#3   Petitioning Company Managers to
     be Better Citizens
#4   Investing in Community
     Development
                                       9
#1: Screening Investments
    in your Portfolio
Negative Screens -
Examples of industries
and companies to avoid:
   Tobacco
   Weapons and military contractors
   Gambling
   Nuclear energy

                                       10
#1: Screening Investments
    in your Portfolio
Positive Screens-
  Examples of company policies to
  favor:
 Positive employment policies and

  practices
   Sound environmental policies
   Good community relations
   Diverse boards
                                     11
#2 Voting Shares Owned

   Annual meeting proxy solicitations
   Legal and financial issues
   Corporate Governance /
    Accountability issues
   Social and environmental issues


                                         12
#2 Voting Shares Owned

Corporate Governance/Accountability:
 Board composition and diversity

 Independent Board members

 Selection of auditors

 Nomination committee composition

 and others




                                   13
#2 Voting Shares Owned

Social Issues:
 Equality in employment

 Corporate Accountability

 Militarism and weapons

 Health and tobacco

 Global Human Rights

 and others




                             14
#2 Voting Shares Owned
Environmental Issues:
 Global Warming

 Nuclear power

 CERES Principles

 Genetic engineering of food

 Waste disposal

 and others




                                15
#3 Petitioning Managers to be
   Better Corporate Citizens
   Identify issues, working with others
   Determine which companies to
    approach
   Open a dialogue with managers
   File resolutions for Annual Meetings
   Negotiate meaningful actions

                                           16
#4 Invest in Community
   Development
Examples:
 Affordable Housing

 Community Banks

 Local Community Development

  Organizations
 and others


                                17
#4 Invest in Community
   Development
Join the 1% for Community Movement
       1% of investments dedicated to your
        community
       Use Community Development Financial
        Institutions (CDFI’s)

   Matching funds available from UUA
       For new and existing investments



                                              18
#4 Invest in Community
   Development
Criteria for UUA Matching Funds:
   Loans must be listed with:
        The National Community Capital Association
        - Philadelphia
   Another source is the UUAHC
       Unitarian Universalist Affordable Housing
        Corp - Wash DC.



                                                    19
How Can Your Congregation
      Get Involved?
 There are different paths
      you can take
Set Your Own Path...
   Start in one area and expand
       Is one screen or area most important ?
   Look into Community Investing
       1% for community program

   Consider SRI Mutual Funds
       if moneys to be invested are < $750k
   Talk to your investment advisor about SRI.
    Set a new direction
       Or talk to an SRI advisor
                                                 21
Consider UUA Pooled Funds

   Consider investing along with UUA
    Endowment according to UUA SRI
    policies.
      • Go to UUA website or contact Treasurer’s
        Office for more information.




                                                   22
Where to Invest? Some Options
   Small Endowments
       UUA Pooled Funds
       SRI Mutual Funds
   Medium Sized Endowments
       SRI Mutual Funds
       Individual Securities
   Large Endowments
       Self Managed (by Investment Committee)
       Independent Investment Manager

                                                 23
Determine Church Team

   Local Parish Roles can vary church to
    church
       Investment Committee
       Board
       Social Justice Committee
       Minister
       Annual Meeting is good venue to discuss and
        vote


                                                      24
A Great Place to Start:
Link UU Values with Social and
  Environmental Investment Issues
   Follow guidelines set by UUA
    Investment Committee
       Screens for stock selection
       Targets for shareholder activism
See Handout of UUA Approved screens and issues

                                                 25
Which Issues Should You Pursue?

      Consider Following
         UUA Screens
Screens for Stock Selection
Approved by UUA Trustees
   Employee Impact
   Customer Impact
   Community Impact
   Environmental Impact




                              27
Employee Impact
Avoid companies that:
   Have a pattern of NLRB cases
   Are on the AFL-CIO boycott list
   Are egregious OSHA offenders
   Are directly involved in violations of basic
    human rights
   Use forced labor, child labor, sweatshops


                                                   28
Employee Impact
Favor companies that:
   Have above average women and
    minorities in workforce
   Strong awareness of affirmative action,
    diversity, antiracism
   Nondiscrimination policies include sexual
    orientation
   Positive union relations


                                            29
Employee Impact
Favor companies with:
   Above average compensation and benefits
   Demonstrated commitment to work-life
    balance
   Strong emergency and safety programs
   Explicit standards for their own and
    vendors' facilities here and abroad
   Transparency on workplace issue
    challenges
                                           30
Customer Impact
Avoid companies with:
   Significant weapons production
   Tobacco products
   Unhealthy products
   Misleading or irresponsible marketing,
       including stereotypical depictions of
    women or minorities



                                               31
Customer Impact
Favor companies that:
   Have safe and useful products of good
    quality
   Responsible pricing and marketing
    practices
   Good product safety concerns



                                            32
Community Impact
Avoid companies that:
   Fail to maintain good CRA ratings
   Engage in predatory lending practices
   Lack regard for community issues
    (pollution, land use)




                                            33
Community Impact
Favor companies that:
   Have "outstanding" CRA rating
   Good accountability with communities
    and the public
   Strong economic development programs
    (women and minorities)
   Innovative community involvement
       (sabbaticals, volunteers)

                                           34
Environmental Impact
Avoid companies that:
   Have serious environmental violations
   Have been negligent in dealing with
       environmental problems
   Have major environmental disasters
   Engage in global destructive practices
       (rainforest, ozone)
   Do not disclose environmental information

                                             35
Environmental Impact
Favor companies that:
   Reduce waste and conserve natural
    resources
   Innovate programs to reduce use of
    energy, water, land
   Good compliance record
   Strong environmental management
    systems
   Commitment to standardized
       environmental reporting

                                         36
Voting Proxies
   Security and Exchange ("SEC") rules
   Non-binding voting, but important PR
   Certain % needed to return on the issue
   Management controls most proxies
       Vote count of 5 - 10% is good first year
       10 - 15% is good in second year
       Recently have received votes of over 20% on
        some issues


                                                      37
Shareholder Activism
CSRI focused issues:
   Apply Affirmative action - disclosure of EEO data
   Promote the Glass Ceiling Commission's
    recommendations
   Reduce greenhouse gas emissions
   Implement a code of global human rights standards
   Prohibit discrimination based on sexual preference
   Protect bio-diversity, particularly in the Arctic
    National Wildlife Refuge
                                                        38
Some Companies
that Received Resolutions
Affirmative Action or Glass Ceiling:
American International Group Halliburton
ConocoPhillips               Johnson & Johnson
Dollar General               Merck
EMC                          Target Corporation
Fleet Bank



                                                  39
Other Companies That
Received Our Resolutions
Environmental Issues:
   Bristol-Myers Squibb - greenhouse gas
    emissions
   Chevron Texaco - greenhouse gas
    emissions
   AES Corp - greenhouse gas emissions
   BP Amoco - bio-diversity
                                            40
Additional Resolutions
Global Human Rights Standards:
   Home Depot
   Colgate-Palmolive
   Federated Department Stores
   H.J. Heinz

Non-Discrimination, Freedom of
 Sexual Preference:
   Exxon
                                  41
Socially Responsibly Investing

    Is WORTH doing
    There are many paths to success
        Choose the one that fits your needs
    Ask the UUA CSRI for help



                                               42
Thank You For Attending

      Questions?

				
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