Cisco’s Shareholders Want Answers on Human Rights

Harington Investments, with the support of Boston Common Asset Management, has proffered a shareholder resolution that requests Cisco “amend the company’s bylaws to establish a board committee on human rights that is authorized to review the implications of company policies, above and beyond matters of legal compliance, for the human rights of individuals in the United States and worldwide. The shareholder believes that “the committee would be an effective mechanism for addressing the human rights implications of the company’s activities and policies as they emerge anywhere in the world. In defining “human rights,” the proponent recommends that the committee use the U.S. Bill of Rights and the United Nations’ Universal Declaration of Human Rights as nonbinding benchmarks or reference documents.”PROXY Governance, a proxy advisory service, frames the issue as a liability issue:“Our general position on human rights-related resolutions is that a company should provide shareholders with reasonable assurance that it has appropriate policies and management practices in place to safeguard long-term shareholder value from potentially material risks, including reputational or legal liabilities, related to the social impact of its operations.” The firm’s analysis goes on to caution that, “considering the level of legislative interest in the matter, and the recent legal action against Yahoo, we are also mindful of the potential legal and liability risks potentially involved.” Image source: blog.socialrisks.com. > Continue.

News selected by Covalence | Country: USA, China | Company: Cisco | Source: Social Risks LLC