Showing posts with label walmart boycott. Show all posts
Showing posts with label walmart boycott. Show all posts

Friday, January 6, 2012

Pension Fund Shuns Walmart

Years ago, when Maple Leaf Foods was demanding deep concessions from its workers in Burlington, Ontario, many teachers tried to get the Ontario Teachers Pension Plan to divest itself from the company. We were unsuccessful, the response being that the Plan had a fiduciary responsibility to its members to maximize earnings, so ethical considerations could not be an influence in investment decisions.

It is good to know that not all pension funds think this way. The €239bn Dutch civil servants and teachers pension fund ABP has announced that it will no longer invest in U.S. retail giant Walmart, arguing that it persists "in behaviour that runs counter to the UN Global Compact's principles in the areas of human rights, labour, anti-corruption and the environment."

One of the reasons for the divestiture is Walmart's well-known anti-union stance, coupled with tactics that punish, usually by dismissal, those who try to unionize a store, and in extreme cases, by store closures:

ABP has excluded Walmart over of its personnel policy, which "violates international directives, particularly with regard to working conditions and the opportunity for employees to unionise."

It's sad that taking a principled stand against corporations that exploit their workers makes the news because such ethical behaviour is the exception, not the rule, in investment decisions.