Shareholder Shout-out

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Proxy Votes
Once you've invested, make your voice heard. Corporate management uses the proxy vote to affirm—or get permission for—its actions. As a result, proxy votes are vitally important tools to the conscientious shareholder. For mutual fund investors, know that the fund manager votes on your behalf. Because corporate managers typically recommend voting against resolutions dealing with social and environmental concerns, it is important to determine how your fund is voting. A simple call to your fund's investor relations department will yield the answer (see also "Mutual Interests: Finding Your Way to a Greener Retirement"). Director of Socially Responsible Investing for Rockefeller and Company, Joyce Haboucha, says that through proxy voting even the single shareholder can make a difference. "The power of the single voice added to other voices cannot be underestimated. When you get the proxies in the mail, instead of tossing them out, see if there is something there that is important and vote it. Having the ability to add another vote to these resolutions is very important."

Communication and Resolutions
Resolutions are where the real fireworks happen in the world of SRI. The first step a socially responsible shareholder can take in affecting corporate policy is to open a dialogue with management. This can be done through individual correspondence requesting a meeting with management or, most often, through a letter-writing campaign. Joining forces with other shareholders will strengthen your voice and the vast majority of shareholder resolutions are the work of groups of shareholders rather than individuals.

If requests for dialogue meet with no success, the next step is to draft and file a shareholder resolution to be voted on at the next annual meeting. Any shareholder who has owns at least $2000 worth of company stock for over a year can introduce a shareholder resolution, but the U.S. Securities and Exchange Commission (SEC) has imposed strict rules for filing. Follow guidelines in the proxy statement for filing and timing. Several organizations offer supplemental resources for investors interested in filing resolutions or joining forces with other shareholders or groups to file resolutions, including Co-op America (see Resources, below).

Lastly, it's important not to expect too much as the result of a single resolution. Exxon, for example, has been reported to fund the American Enterprise Institute, which offered $10,000 grants to scientists to dispute the January 2007 assessment from the Intergovernmental Panel on Climate Change.

Divestment
The ultimate way to voice your concerns about a company's business practices is also the tool of last resort: divestment. By selling off shares in a company in protest, investors can make a real impact. In fact, SRI was born when investors began divesting from companies involved in the Vietnam War.