Issues List
Based on the Wesleyan perspective that faith and practice go hand-in-hand, the Social Principles and The Book of Resolutions of The United Methodist Church address many of the complex issues facing society today. They provide the starting point for all General Board investing. Among the many issues they address, the General Board has identified the following as deserving special attention:
Climate Change
Not everyone agrees how climate change takes place, but the scientific community overwhelmingly has acknowledged the reality of global warming. Based on data obtained by the Global Atmosphere Watch of the World Meteorological Organization (WMO), an agency of the United Nations, atmospheric levels of greenhouse gases are the highest ever recorded. Greenhouse gases, primarily carbon dioxide, methane and nitrous oxide, are naturally-occurring substances found in the earth's atmosphere that help regulate the earth's temperature by trapping infrared radiation that has bounced off the earth's surface.
The amount of greenhouse gases found in the atmosphere has been increasing steadily since the Industrial Revolution. Emissions of carbon dioxide alone, largely through the burning of fossil fuels for energy use, have increased 35% since the late 18th century. Higher levels of greenhouse gases enable the atmosphere to absorb more infrared radiation, thus increasing the surface temperature of the earth and resulting in global warming.
Global warming has become a serious environmental issue. In response, The United Methodist Church has declared its support of "social policies that...de-emphasize or eliminate energy-producing technologies that endanger the health, the safety, and even the existence of the present and future human and nonhuman creation" (¶160B, The Book of Discipline 2004).
In addition, the Church has called for the "control of global warming" (Resolution 5.8, The Book of Resolutions 2004), to move beyond "dependence on high carbon fossil fuels that produce emissions leading to climate change" (Resolution 6.1), to "support measures calling for a reduction of carbon dioxide, methane, nitrogen oxides, and sulfur dioxide, which contribute to acid rain and global climate change" (Resolution 7) and to "give special attention to the long-term effects of air pollution, such as the depletion of the ozone layer, global warming, and acid rain" (Resolution 10).
Global warming and climate change pose special challenges to companies. Many companies contribute directly to global warming through greenhouse gas emissions. All are susceptible to the effects of global warming. Anticipating how global warming and climate change may affect a company's ability to do business into the future is a serious issue for shareholders. Accordingly, the General has filed shareholder resolutions calling upon companies to report on their response to issues relating to global warming and climate change.
Back to top
Sustainability Reporting
Sustainability, a concept that is gaining wider acceptance in the corporate world, most commonly refers to "development that meets the needs of the present without compromising the ability of future generations to meet their own needs." This is the definition developed by the World Commission on Environment and Development, sometimes knows as the Brundtland Commission, in 1987. When applied to companies, sustainability involves conducting business so as not to negatively affect long-term viability, shareholder value, the environment or stakeholders (including consumers, employees and local communities).
Both investors and consumers are increasingly interested in a company's sustainability and many companies have responded by improving their disclosure of business policies, practices, goals, opportunities and challenges related to environmental and social issues. A sustainability report provides a means for companies to report sustainability indicators and to discuss how their business practices address sustainability issues.
The United Methodist Church recognizes that "[c]orporations are responsible not only to their stockholders, but also to other stakeholders: their workers, suppliers, vendors, customers, the communities in which they do business, and for the earth, which supports them. We support the public's right to know what impact corporations have in these various arenas, so that people can make informed choices about which corporations to support" (¶163I, The Book of Discipline 2004).
Following Church teaching and believing that sustainable companies offer greater shareholder value, the General Board has filed a number of resolutions calling for the preparation of sustainability reports.
Back to top
Labor Standards/Human Rights
Globalization has made us aware that, around the world, people work under vastly different circumstances. In some factories, particularly in developing countries, there are reports of forced overtime, low wages, unsafe working conditions and child labor.
Methodism's first social creed, adopted in 1908, was largely concerned with labor issues. Echoing concerns still keenly felt today, the Church called "for a living wage in every industry," "the abolition of child labor," "for the principle of conciliation and arbitration in industrial dissensions" and, ultimately, "equal rights and complete justice for all men in all stations of life" (¶59, Appendix, The Book of Discipline 1908).
Today's Church continues in this tradition. The Social Principles assert that "every person has the right to a job at a living wage" (¶163, The Book of Discipline 2004), "the right...to organize for collective bargaining" (¶163B) and the right "to refuse to work in situations that endanger health and/or life" (¶163C).
Accordingly, the General Board is an advocate for workers' rights. Of special concern are the working conditions in the overseas factories that supply American companies with manufactured goods. The General Board believes that companies should maintain and enforce clear codes of conduct for their various suppliers and global facilities. These codes are meant to guarantee that workers are treated humanely, compensated fairly and allowed to organize without fear of intimidation or reprisal.
Recognizing that "persons and groups must feel secure in their life and right to live within a society if order is to be achieved and maintained by law" (¶165D), The United Methodist Church also has affirmed "the basic rights of all persons to equal access to housing, education, communication, employment, medical care, legal redress for grievances, and physical protection" (¶162). As an advocate for human rights, the General Board is especially sensitive to those regions of the globe experiencing political and civil unrest. By holding corporations accountable for the implementation of their codes of conduct in these locations, the General Board gives voice to the Church's commitment that humanity be affirmed in all places.
Back to top
HIV/AIDS
Despite advances in the treatment of HIV/AIDS, this world-wide pandemic continues to devastate communities across the globe. According to United Nations sources, more than 40 million people were infected with HIV in 2005, including 17.5 million women and 2.3 million children. Of these, more than 60% are in sub-Saharan Africa where only 10 percent receive any kind of treatment. World-wide, new infections totaled almost 5 million.
The United Methodist Church has said that heath care "is a basic human right" and that "countries facing a public health crisis such as HIV/AIDS must have access to generic medicines and to patented medicines without infringing on a pharmaceutical company's patent/licensing rights" (¶162T, The Book of Discipline 2004).
Accordingly, the General Board has been an advocate through dialogues and shareholder resolutions for the availability of low-cost HIV/AIDS medications and for workplace policies that stress education and non-discrimination based on status. It also has asked companies to give serious consideration to the effects the HIV/ADIS epidemic will have on business operations.
Back to top
The Environment (Water)
United Methodist statements on the environment are many and stem from the basic conviction that "All creation is the Lord's, and we are responsible for the ways in which we use and abuse it" (¶160, The Book of Discipline 2004).
Recognizing the responsibility to support a more ecologically equitable and sustainable world, the Church has voiced its support for the:
- elimination of chlorine in the paper manufacturing process,
- disclosure of toxic wastes,
- reduction of greenhouse gas emissions, and
- protection of water resources.
Specifically relating to water, The United Methodist Church recognizes that "Water is an integral part of God's radical expression of God's love to all humanity. Water cannot be monopolized or privatized. It is to be shared like air, light, and earth. It is God's elemental provision for survival for all God's children together on this planet" (Resolution 13, The Book of Resolutions 2004).
Accordingly, the General Board has challenged efforts by private companies to assume greater control of local water resources.
Back to top
Corporate Governance
Traditionally, corporations have operated without much scrutiny from shareholders or the general public, but such recent corporation failures as Enron and WorldCom have increased the calls for greater corporate accountability and more open and transparent governance. The United Methodist Church has stated that "Corporations are responsible not only to their stockholders, but also to other stakeholders: their workers, suppliers, vendors, customers, the communities in which they do business, and for the earth, which supports them. We support the public's right to know what impact corporations have in these various arenas" (¶163I, The Book of Discipline 2004).
Accordingly, the General Board is very interested in how corporations are governed. In particular, the General Board believes that:
- boards of directors should reflect the diversity of our society (more representation by women and minorities),
- directors should be more accountable to shareholders through majority vote and annual elections, and
- the majority of directors, as well as the board chairperson, should be independent of company management (not employed by the company).
Back to top
Diversity/Cultural Sensitivity
"We affirm all persons as equally valuable in the sight of God. We therefore work toward societies in which each person's value is recognized, maintained, and strengthened" (¶162, The Book of Discipline 2004). The United Methodist Church strongly supports diversity and equal rights both in the Church and in society at large. Recognizing that racism is a sin, the Social Principles recognize such tools as affirmative action to address "the inequalities and discriminatory practices within our Church and society" (¶162A). Specifically, the Social Principles affirm the rights of racial and ethnic persons, women, religious minorities, children, the elderly, persons with disabilities and homosexuals.
Accordingly, the General Board has called upon companies to embrace equal employment opportunity, use of minority-owned vendors and greater representation of women at all employment levels.
In connection with equality of opportunity, The United Methodist Church recognizes that some communities have been victimized in ways that go beyond the economic. Native American communities, in particular, have seen their historic cultures devalued by the appropriation of native names and symbols and the violation of sacred sites. Resolution 131, The Book of Resolutions 2004, denounces "the continued use of Native American names as nicknames for sport teams as racist and dehumanizing." while Resolution 148 calls for the strengthening of "the American Indian Religious Freedom Act of 1978" and the preservation of "the God-given and constitutional rights of religious freedom for American Indians, including the preserving of traditional Native American sacred sites of worship."
The General Board continues to advocate for greater cultural sensitivity among corporations, specifically discouraging the use of negative Native American imagery in the marketing of products and calling upon corporations to respect Native American lands and sacred spaces when making business location decisions.
Back to top
Genetically Modified Organisms and Product Labeling
Genetically modified organisms (GMO) are organisms whose genetic structure has been altered by the introduction of non-related genetic material. This cross-species genetic manipulation is meant to enhance or improve the original organism. In the case of agricultural products, crops can be genetically modified to, for instance, improve taste, increase nutrients, resist traditional pests or tolerate the application of herbicides.
GMOs represent an ever-growing segment of all U.S. agricultural production. According to the Pew Initiative on Food and Technology, the U.S. accounts for nearly two-thirds of the world's production of genetically modified crops. The largest U.S. genetically modified crops are corn, cotton, soybeans, canola, squash and papaya. In 2004, 85% of all soybeans, 76% of all cotton and 40% of all corn grown in the U.S. represented genetically modified varieties.
Supporters of genetically modified crops claim they can help eradicate world hunger, improve efficiencies, reduce pollution hazards and raise nutritional levels.
Opponents are concerned that food processed from genetically modified varieties has not been adequately tested for food safety, may produce as yet unknown allergic reactions, may reduce biotic diversity and may result in control of food production by a few companies.
Though The United Methodist Church "welcome[s] the use of genetic technology for meeting fundamental human needs for health, a safe environment, and an adequate food supply," it also calls for "effective guidelines and public accountability to safeguard against any action that might lead to abuse of these technologies" (¶160M, The Book of Discipline 2004).
More specifically, the Church calls for "policies that protect the food supply and that ensure the public's right to know the content of the foods they are eating. We call for rigorous inspections and controls on the biological safety of all foodstuffs intended for human consumption.... We call for clear labeling of all processed or altered foods, with premarket safety testing required. We oppose weakening the standards for organic foods. We call for policies that encourage and support a gradual transition to sustainable and organic agriculture" (¶160F).
Accordingly, the General Board has filed resolutions calling for the labeling of food products that have been processed using genetically modified ingredients.
Back to top
Predatory Lending
Predatory lending is a term describing a type of lending that takes advantage of people with poor credit history or little financial education. Usually characterized by unscrupulous or unethical practices, predatory lending can include the application of excessively high fees and interest rates, the use of balloon payments, flipping (successive refinancing of the original loan at increasingly higher rates), packing (linking the issuance of the loan to the purchase of some form of insurance) and steering (directing otherwise credit-worthy borrowers into high-interest loans). Most commonly, predatory lending targets the elderly, the poor and minorities.
Lenders may be involved in predatory lending either directly or through loan securitization. The securitization of loans is a process whereby one financial institution buys the loans of another, repackages them and then sells them to investors. Securitization provides lenders with new capital, thus allowing them to make additional loans.
Financial institutions engaged in loan securitization may be implicated in predatory lending if they have not sufficiently evaluated the loans they are securitizing to ensure predatory loans are not present.
The United Methodist Church has directed all general agencies to invest in banks that have "policies and practices that preclude predatory or harmful lending practices" (Resolution 213, The Book of Resolutions 2004). Accordingly, the General Board has encouraged lending institutions to develop policies and evaluative procedures to ensure that loans, either direct or securitized, are not predatory.
Back to top
| 
