SOCIAL TOPICS (Archive): ENVIRONMENT

Published, July 1998

       Since our last Values article highlighting the addition of British Petroleum to USTC’s approved list, we have been in discussions with company officials. In June, BP America’s Environmental Health & Safety Director and BP Chemicals’ External and Regulatory Affairs Manager volunteered to meet with us in our offices. At the meeting we discussed BP’s intentions concerning development in the Arctic National Wildlife Refuge (ANWR). We also addressed BP Chemical’s community relations and environmental record in Lima, Ohio, where a local community group feels that BP can and should be doing a better job.

       Prior to our meeting we had sent BP management a letter outlining our view that developing ANWR would be contrary to BP’s environmental goals. The environmental community vehemently opposes the opening of ANWR. The area includes the last ten-percent of undeveloped Alaskan coastline. Indigenous people and wildlife are dependent on the ecological health of this area for survival.

       Our concerns about ANWR have been heightened by recent news that BP and Chevron Corporation have renewed a long-term oil exploration lease on privately owned land within ANWR. A related press release quoted BP’s Vice President of Exploration as saying, “ANWR offers the greatest potential for a world-class oil discovery on the North Slope. We continue to strongly support environmentally sound access to ANWR.”

       BP has thus far been very receptive to our questions and challenges. At our June meeting, we underscored a call from the environmental community for BP to help keep ANWR closed to all development.

       Earlier this year, BankBoston, Coca-Cola and Interface Corporation each announced that they have endorsed the CERES Principles. We wrote to the three companies, thanking management for their commitment to environmental leadership and welcoming them to the CERES Coalition. BankBoston has also recently announced the extension of health benefits to cover dependent parents of employees and all adult partners, going well beyond same-sex partner benefits found at an increasing number of companies.

       Sealed Air Corporation has acquired W.R. Grace’s packaging business, Cryovac. Though we have come to appreciate Sealed Air’s commitment to environmental solutions concerning the production and disposal of its products, W.R. Grace has had a history of lackluster environmental performance. Sealed Air’s Chairman has assured us that Cryovac had cleaned up its act considerably in recent years and that the unit will be run according to Sealed Air’s strict environmental policies.

       AFL-CIO researchers have confirmed for us that McClatchy Newspapers now has some of the best labor relations in the embattled publishing industry. This is a great improvement from recent years. Within weeks of closing an acquisition of Cowles Media earlier this year, McClatchy constructively negotiated several long-term union contracts. We have congratulated McClatchy’s CEO for his leadership and have encouraged the company to continue its openness to issues raised by organized labor as the company completes the negotiation of several other union contracts.

       Last year, we were surprised to learn of a Department of Labor (DOL) complaint against Nationsbank, alleging the company had engaged in discriminatory hiring practices. We recently learned from Nationsbank that the U.S. District Court enjoined DOL from proceeding with the charge. The matter is now pending review before the Fourth Circuit Court of Appeals. Nationsbank has otherwise seemed to have a strong record on workplace issues. The company has been on Working Mother magazine’s “100 Best” for several years, has received praise in the Glass Ceiling Commission report for efforts to advance women and minorities into management positions, and has been honored by the National Supplier Development Council for its commitment to minority vendors.

       Bristol-Myers Squibb has extended its leadership in addressing wage gap issues by initiating a second round of universal stock options to all employees worldwide. The first round, granted in 1995, has placed in excess of $1 billion of equity value in employees’ hands. This program has been particularly beneficial to company employees working in less industrialized countries, where gains from option grants have far surpassed many employees’ annual salaries.

       USTC recently downgraded Delta Airlines, deciding the company does not pass muster from a social performance standpoint. Labor relations, customer service, and the company’s workplace culture have suffered from layoffs and other cost-cutting measures implemented by previous management. Numerous discrimination lawsuits have been filed against the company, including most recently a class action suit led by the women’s organization 9-to-5, alleging race, sex, and age discrimination. Under new management since last summer, the company has announced a renewed commitment to employees and customer service. We await evidence that this pledge has been put into practice.