EthInves ver 2.0 The On-disk Almanac of Ethical Investing copyright 1988 Jerry Whiting PO Box 20821, Seattle, WA 98102 >>> >>> RESOURCES <<< <<< You want your personal beliefs guide your investment decisions because you care about how your money is working for you. You need hard data upon which to base such important decisions. EthInves provides you with just such data. Facts on ethical investment vehicles like mutual funds & money market accounts; lists of companies that still do business in South Africa; major nuclear weapons contractors; the top Dept. of Defense contractors; utilities that own nuclear power plants and much much more. This is an imperfect world we live in. Nothing is black and white. Everything is complicated. You should sit down and list your priorities and concerns. How do you want your money to work? What companies or industries would you like to avoid? Which do you want to support? In short, what are your priorities? Now is a good time to sit down with a pencil and paper and make a list. Number the issues 110. What are you prepared to compromise on? What are your non-negotiables? Possible criteria for evaluating a potential investment might include: * Defense-related activities, including the manufacturing of arms, radar or communications equipment, aircraft, ships, submarines, missiles, etc. and/or research on any of the above * South African investments or trade. The last year has seen a continued departure of American firms from South Africa. Not all opponents of apartheid support the complete withdrawal of American companies from South Africa, believing that the presence American companies can provide a positive and constructive influence. How do you feel about firms that are still in South Africa but have signed the Sullivan Principles? (Rev. Sullivan himself has changed to a position of advocating the withdrawal from South Africa. See his 6/3/87 statement elsewhere in this issue of EthInves.) How do you feel about companies that have no more "direct" investments but have set up franchises or other alternatives to continue to have a business presence in (and profit from) South Africa? * Pollution and environmental track record. Does the company in question pollute, strip mine, dump toxic waste, manufacture pesticides/herbicides/insecticides, etc.? * Labor history. Is the company known for its poor labor record, breaking strikes, not negotiating in good faith, hiring outside union busting firms, discrimination against minorities and/or women, etc.? * Nukes, commercial or military. Involvement in the resarch, design, manufacturing, construction and/or maintenance of nuclear power plants? Exploration, mining and/or refining of uranium, plutonium or other nuclear material? Research, design, manufacturing, installation, maintenance, and/or delivery of nuclear weapons? There are those who purchase minimal amounts of a company's stock in order to participate in stockholders' protests. Others use proxy voting. Several religious and divestment groups have used this tactic with great success. If you have the time and energy to devote to this more activist approach, it can raise social, environmental and political issues at annual meetings. Such stockholders' actions have pressure firms to leave South Africa. >>> READING LIST <<< >>> Articles <<< This reading list includes articles that have appeared in 1987. Consult EthInves ver 1.3 for references to older articles. Articles about South Africa and divestment continue to be so frequent that I have only included selected articles. If you still need background reference material on aparthied and the divestment movement, spend an afternoon or evening at your local public library. With the New York Times or Wall Street Journal, page numbers may differ slightly between regional editions. Business Week, 10/26/87, p76 profile of Laura Scher of Working Assets Changing Times, 11/87, p134 good overview of socially responsible investing Economist, 1/31/87, p56 the book Rating America's Corporate Conscience reviewed New Age, Jan/Feb 87, p49 good overview of socially responsible investing with extensive resource list New York Times, 7/25/87, p20 brief intro to socially responsible investing New York Times, 7/27/87, p21 excellent article on impact of divestment from South Africa New York Times, 8/28/87, p9 a very interesting article on military contractors' PACs; the 10 leading military contractors contributed $2.9M in FY86 New York Times, 9/5/87, p14. Frank Weeden Foundation has an innovative solution involving bonds to address to urgent global issues: third world debt and preserving endangered ecosystems New York Times, 9/7/87, p37 as US firms leave SAfrica, Japanese companies move in to fill the void New York Times, 9/20/87, The Business World Part 2, p30 if there's only one article you read this year about the ethical investing, this is it NY Times of 9/27/87, Section 3 p 1 There's a very interesting if depressing article in the that discusses the impact of a nuclear weapons treaty on the stock price and earnings of major weapons contractors. Since conventional weapons sales are likely to go up in the aftermath of a nuclear weapons treaty and conventional weapons have a higher profit margin than nuclear weapons, major defense contractors may stand to make more money *after* a nuclear weapons treaty between US & USSR. Let's hope the author's thesis is flawed. New York Times, 10/4/87, p16 A unique program to encourage small organic farmers to stay in business. End consumers pay for produce up front to ensure farmer's survival. In effect, organic produce futures. An idea that could easily catch on and be a grass roots (pun intended) program that supports organic farmers around the world. New York Times, 10/5/87, op-ed page, Turn Up Heat on Pretoria article by executive director of TransAfrica calling for sanctions with a bite New York Times, 11/19/87, p4 very interesting article on Korean kye, traditional mutual savings associations; definitely food for thought New York Times, 12/25/87, p23 no longer will American firms earn US tax credits for taxes paid in SAfrica, further reducing the profits of doing business there; article discusses potential impact Personal Investing, 9/23/87, p142 good overview of socially responsible investing Time, 10/27/87, p74 US News & World Report, 1/26/87, p50 Wall Street Journal, 1/16/87 the book Rating America's Corporate Conscience reviewed Wall Street Journal, 5/20/87, p37/41 overview of socially responsible investing Wall Street Journal, 8/24/87, front page an excellent article on the impact and implications of US firms divesting from South Africa Wall Street Journal, 9/10/87, p35 The Community Reinvestment Act is being used by community activists to pressure banks to "serve the convenience and needs" of local communities: low-cost housing loans, small business loans, etc. Wall Street Journal, 9/21/87, p20 Columnist reviews impact of US trade sanctions against South Africa. Doesn't take into account how ineffectual they are in light of US companies "divesting" but arranging franchise, licensing, etc. deals on the way out that undermine the whole effort Wall Street Journal, 9/30/87, p 6 Defense contractors are changing the way they do business to conform to a new business climate and as a result are cutting cost and becoming more competitive. The outcome: decreased profits and lower stock prices Wall Street Journal, 11/2/87, p28 There's an interesting article on the increasing clout of pension funds that discusses the social activism found in some pension funds Wall Street Journal, 12/23/87 Ford may have violated 1986 anti-apartheid law >>> READING LIST <<< >>> Books <<< Ethical Investing, Amy Domini with Peter D. Kinder Addison-Wesley Publishing Rating America's Corporate Conscience Steven Lydenberg, Alice Tepper Marlin & Sean O'Brien Strub Addison-Wesley Publishing Socially Responsible Investing, Rob Baird Center for Urban Education 1135 SE Salmon St. Portland, OR 97214 $5 24 ppd Earthbank Guide to Sustainable Economics Catherine Burton & Geralynn Rackowski PO Box 87 Clinton, WA 87236 Corporate Public Affairs 1985 Columbia Books, 1350 New York Ave., Washington DC, 20005 The Corporate Conscience: Money, Power and Responsible Business, David Freudberg American Management Assoc. 135 W.50th St. New York, NY 10020 $18.95 >>> READING LIST <<< >>> Periodicals, Publications, etc. <<< Write for current prices. Boycott Census RFD #1 Box 3445 Norway, ME 04268 clearinghouse for consumer boycott information Carhart Associates 1715 D St. NE Washington, DC 20002 202 544-4262 publishes Productivity Investor newsletter Center for Corporate Public Involvement 1850 K St. NW Washington, DC 20006 202 862-4047 Assoc. of insurance companies concerned with social involvement publishes Response, monthly Clean Yield Publications, Ltd. PO Box 1880 Greensboro Bend, VT 05982 802 533-7178 publishes The Clean Yield Conscience & Military Tax Campaign 4534-1/2 University Way NE, #204 Seattle, WA 98105 206 547-0952 information on tax resistance Co-op America 2100 M St. NW, #310 Washington, DC 20063 800 424-2667 202 872-5307 A clearinghouse for alternative businesses (coops, collectives, worker-owned businesses, medical insurance, etc.) Publishes Building Economic Alternatives, quarterly Council on Economic Priorities 30 Irving Place New York, NY 10003 212 420-1133 publishes Council on Economic Priorities Newsletter & other publications Covenant for a World Free of Nuclear Weapons 2406 Geddes Ann Arbor, MI 48104 313 662-2111 publishes list of top 30 nuclear weapons contractors Data Center 464 19th St. Oakland, CA 94612 415 835-4692 publishes Corporate Responsibility Monitor (monthly), a quarterly newsletter and other publications Energy Investment Research Inc. Glenville Station PO Box 73 Greenwhich, CT 06830 publishes Envest (semi-monthly), a newsletter covering alternative energy, cogeneration, waste mgmt., etc. Franklin Research and Development 711 Atlantic Ave., 5th fl. Boston, MA 02111 800 345-8112 800 662-2444 in PA 617 423-6655 publishes Insight: The Advisory Letter for Concerned Investors (quarterly), Insights (monthly) & Vital Industry Reports (quarterly) Funding Exchange/National Community Funds 666 Broadway, 5th fl. New York, NY 10012 212 260-8500 publishes Directory of Socially Responsible Investments, $5 Good Money Publications Inc. Box 363 Worcester, VT 05682 800 535-3551/223-3911 publishes Good Money, Netback and other publications. Inform 381 Park Ave. S. New York, NY 10016 212 689-4040 publishes Inform Reports & other publications Interfaith Center on Corporate Responsibility 475 Riverside Dr., #566 New York, NY 10115 212 870-2316 The Corporate Examiner and other publications Investor Responsibility Research Center 1755 Massachusetts Ave. NW, Ste. 600 Washington, DC 20036 202 939-6500 IRRC News for Investors Modern Technology Press 40-19 164th St., Ste. 634 Flushing, NY 11538 publishes The Ethical Investor: The Newsletter of Politics & Personal Finance, monthly Multinational Monitor PO Box 19405 Washington, DC 20036 biweekly National Action/Research on the Military Industrial Complex 1501 Cherry St. Philadelphia, PA 19102 215 241-7175 publishes a variety of publications National Boycott Newsletter 6506 28th Ave. NE Seattle, WA 98115 206 523-0421 publishes newsletter on consumer boycotts National War Tax Resistance Coordinating Committee PO Box 2236 East Patchogue, NY 11772 516 654-8227 information on tax resistance Nuclear Free America 325 East 25th St. Baltimore, MD 21218 301 235-3575 publishes a variety of publications Nukewatch 315 West Gorham St. Madison, WI 53703 publishes Invest in Peace Renewable Resource & Conservation Report 311 Miramar Rd. Rochester, NY 14624 716 247-8197 bimonthly Resource Publishing Group 1401 Wilson Blvd., #101 Arlington, VA 22209 703 524-0815 publishes Concerned Investors Guide: Non-Financial Corporate Data The Social Investment Forum 711 Atlantic Ave. Boston, MA 02111 617 423-6655 socially responsible investing trade association (individual memberships available). $36/year membership includes quarterly with monthly updates