wfn.org | NCCCUSA Pulls Citigroup Resolution

[CAROL_FOUKE.parti@ecunet.org (CAROL FOUKE)]

National Council of the Churches of Christ in the USA
Contact: NCC News, 212-870-2227
Email: news@ncccusa.org  Web: www.ncccusa.org

29NCC3/16/99 FOR IMMEDIATE RELEASE

NCC Withdraws Shareholder Resolution from Citigroup Inc.
 
 NEW YORK CITY - The National Council of Churches has 
withdrawn a shareholder resolution from Citigroup Inc. after 
the corporation agreed to engage in a "good faith" dialogue 
regarding the endorsement of the "CERES Principles."

CERES (the Coalition for Environmentally Responsible 
Economies) is a 10-year-old partnership among some of the 
largest investors (with $200 billion in stock), 
environmental groups (with 14 million members) and leading 
corporations in the country.  The Principles ask for full 
disclosure of environmental costs, benefits and impact as 
part of a commitment to environmental improvement and 
transparency.

 Citigroup includes includes Citibank and Travelers 
Group.  "While this is not a pledge to endorse, it is a 
commitment to engage in serious discussions with us as 
shareholders," commented Dr. Ariane van Buren, Environment 
Director of the Interfaith Center on Corporate 
Responsibility, a coalition of religious investors in which 
the NCC participates.  ICCR coordinates corporate 
responsibility work for 275 U.S. churches and faith 
communities.

 "The NCC, as part of its social responsibility in 
investment and our economic justice agenda, files 
shareholder resolutions with companies to urge them to act 
in a more socially responsible manner," said Timothy Smith, 
ICCR's Executive Director.  "Our goal in filing these 
resolutions is to affect change in a company." 

 In addition, the NCC has been using its shares to 
challenge companies on a variety of other issues.  For 
example, the NCC sponsored a resolution to Lucent 
Technologies asking the company to prepare a report for 
shareholders dealing with diversity issues.  The company, a 
recent spin-off from ATT, agreed after dialogue to do the 
report requested.  As a result, the NCC withdrew the 
resolution.

 However, NCC and other sponsors have been less 
fortunate with Home Depot, where shareholders with over $30 
million of stock have asked the company to do a similar 
diversity report.  Home Depot settled a lawsuit alleging 
gender discrimination for more than $100 million, 
precipitating the resolution.  The company has declined to 
disclose any hard data on its employment of women and 
minorities.  This resolution goes to a vote at Home Depot's 
stockholders' meeting in Atlanta this spring.

 The NCC also has been involved in shareholder 
resolutions with Mobil Oil, challenging its contributions to 
global warming.  On other environmental issues, the NCC has 
co-sponsored resolutions to Abbott Laboratories and Gillette 
requesting they endorse the CERES principles.  In addition, 
the NCC is one of a number of co-sponsors of a resolution to 
General Electric challenging GE's pollution of the Hudson 
River through PCBs.

 Finally, on international issues, the NCC has co-
sponsored a resolution to Wal-Mart, dealing with the issue 
of "sweatshop" conditions in factories overseas providing 
products to Wal-Mart, and a resolution to Unocal, 
challenging their operations in the military dictatorship of 
Burma.

 The NCC also has a commitment - as do many other 
religious investors - to earmark a portion of their 
investment capital to support community development efforts.  
Most recently, the Council agreed to make a modest $10,000 
investment in Shared Interest, a fund which guarantees loans 
for community development investing in South Africa's black 
community.

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