Release Date: May 14, 2004
New York, NY Dillard's Inc. (NYSE: DDS) shareholders will vote tomorrow on a proposal asking the company to implement a Code of Conduct for its international facilities and suppliers, and to commit to a program of outside, independent monitoring of compliance with such a Code. As the basis for the Code of Conduct, the resolution recommends using the International Labor Organization's (ILO) human rights standards and the United Nations' Norms on the Responsibilities of Transnational Corporations with Regard to Human Rights.
The proposal was co-filed by the New York City Pension Funds, Amalgamated Bank's LongView Collective Investment Funds, and Christian Brothers Investment Services. The resolution was initially filed in 2003 and received 15.7% of the votes cast.
According to an April 22, 2004, Investor Responsibility Research Center (IRRC) report on Dillard's, the company does not have a consolidated public document that details its practices on global labor standards and associated monitoring and enforcement mechanisms. In addition to not having a unified policy, Dillard's does not provide regular reporting on human rights matters, although some of its competitors have already implemented independent monitoring programs. Understanding how a company deals with human rights is the single most important social issue in non-financial reporting for stakeholders, as stated in ECC Kohtes Klewes "Global Stakeholder Report 2003."
"A piecemeal transmission of information does not substitute for thorough and regular independent auditing and disclosure," said John K.S. Wilson, the director of Socially Responsible Investing at Christian Brothers. "Reporting can identify practices that pose liabilities, allowing the company to resolve issues before they result in problems, such as costly legal actions."
According to the IRRC report, violations of Dillard's labor policies "can be potentially embarrassing to the company."
"Corporations expose themselves to undue risk when they fail to monitor labor standards throughout their supply chain," said Amalgamated Bank's Chief Economist Melissa Moye. "As the global media focus on human rights transgressions, implementing these policies may help protect our company's reputation and ensure that it is not associated with unethical practices."
Dillard's will hold its annual shareholder meeting tomorrow morning in Little Rock, Arkansas.
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. Amalgamated Bank is available online at www.amalgamatedonline.com
