Release Date: Apr 22, 2004
New York, NY Abbott Laboratories (NYSE: ABT) shareholders will vote tomorrow on a proposal asking the board of directors to review the economic effects of the HIV/AIDS, tuberculosis, and malaria pandemics on the company's business strategy in southern Africa and other emerging markets. The proposal further asks for the board to review the company's initiatives on the pandemics to date, and to report to shareholders within six months following the 2004 annual meeting.
The proposal was filed by the Society of Jesus - Maryland Province, a member of the Interfaith Center on Corporate Responsibility (ICCR); and co-filed by 18 other funds, including Amalgamated Bank's LongView Collective Investment Fund. The proponents seek to establish a policy whereby Abbott Laboratories identifies and reports the impacts of these pandemics on the corporation's interests.
According to the Joint United Nations Program UNAIDS, the HIV/AIDS pandemic is "creating or aggravating poverty among millions of people, eroding human capital, weakening government institutions and threatening business activities and investment."
"HIV/AIDS is an economic, not just a humanitarian, crisis," said Amalgamated Bank's Chief Economist Melissa Moye. "Governments are under enormous pressure to take drastic measures to deter the potentially devastating threat of the pandemic on their people and their economies. In my view, pharmaceutical companies must dramatically scale up efforts to respond to the crisis if they are to retain credibility and some control over their investments."
"The investor-owners of Abbott need to feel confident that the board of directors has fully considered the risks and opportunities they face in relation to the pandemics in developing markets, and have implemented effective policies for dealing with the challenges," said Sister Doris Gormley, representing several provinces of the Society of Jesus.
The LongView Funds hold 660,000 shares of Abbott Laboratories common stock.
Founded in 1923, Amalgamated Bank invests workers' retirement savings through its LongView Funds. With $8 billion in assets under management, LongView actively votes its proxies and sponsors shareholder initiatives for corporate reform each year. Amalgamated Bank is available online at www.amalgamatedonline.com
