Flowering on Wall Street: activists' clout

Still, the private sector is where social activists see an opportunity. The Investor Responsibility Research Center says shareholders are bringing 348 resolutions on social issues, about the same number as last year, to annual meetings this spring. Leading the way with 65 resolutions are environmental issues, where activists see corporate America moving in a more hopeful direction than regulatory Washington.

Over the past 18 months, for instance, institutional investors and environmentalists have argued that any role companies might have in global warming could make them a target for future lawsuits or tough regulations. Some seem to be listening. Three power companies - Cinergy Corp., American Electric Power, and TXU Energy - have analyzed their risks relative to climate change. Southern Co. and Ford Motor Co. have agreed to do the same.

"We have gotten enormous traction with business and investors, not because it's a clever tactic, but because the economic risks are inordinate," says Mindy Lubber, president of CERES, a coalition of environmental, public interest, and investor groups.

Encouraged by progress in framing climate change as a threat to companies' bottom lines, advocates are bringing some new issues before shareholders this season. Those who own stock in Exxon Mobil or ChevronTexaco, for instance, will vote on whether to call on management to report on the likely environmental impact of drilling in Alaska's Arctic National Wildlife Refuge. A leading lobby group to preserve the ban, US Public Interest Research Group (US PIRG), now dedicates half its resources on the issue toward lobbying companies instead of Congress.

Some of its methods are unorthodox, such as recruiting anthropologists to write British Petroleum President John Browne, urging him to consider the Gwich'in tribe that lives in the region. Whatever the impetus, BP said a year ago it has no plans to drill in the refuge. On another issue, US PIRG has been calling on Congress since 2001 to require stricter storage standards at chemical plants where, it says, a terrorist attack in some instances could kill 1 million or more people. Yet because Congress has declined to impose such regulations, the group over the coming year will team up with a network of investors for the first time to help nudge management.

"We've been fighting defensively ever since [President] Bush came to office, but the corporate arena allows us to be more proactive," says Athan Manuel of US PIRG's Alaskan wilderness campaign.

Not every activist group gets a welcome reception at corporate meetings, Mr. Manuel says. Those with no credentials for doing levelheaded policy analysis seldom get a hearing. What's more, some organizations that often do get a hearing say their membership is sometimes wary.

"There are many in the environmental community who do worry about our involvement with the corporate sector," says Kevin Knobloch of the Union of Concerned Scientists. "They worry about us compromising our values."

But activists agree that if they can make a solid case for a policy proposal that makes business sense, executives are often willing to listen. On this score, Friedrich says PETA persuaded McDonald's to adopt a more humane slaughtering method at a cost of $1 million per slaughter line by showing the investment would pay off economically: fewer worker-compensation claims, higher carcass quality, and a higher meat yield.

Similarly, US PIRG believes it can help oil companies tune in to American consumers who don't want oil drilling in the Alaskan refuge. "Maybe the greatest irony is that environmental groups are engaged with corporations where we could help their bottom line," Manuel says. Some 15 years ago, "no one ever would have thought US PIRG would be helping BP bolster its image as a green company. But if they earn it, we're happy to compliment them for it."

Page: 1 | 2