Chevron (CVX) Must Include Burma Resolution on Its Ballot

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Chevron (CVX) Must Include Burma Resolution on Its Ballot

Written by Miranda Marquit

Monday, 05 May 2008 12:13

Chevron (CVX) is one of the major investors in the Yadana gas field and pipeline project. This pipeline transports gas to Thailand and, reportedly, pays a rather large chunk to the military regime in Burma.

Photo:C4Chaos, Creative Commons, Flickr

Many social conscious investors have been concerned about the fact that Burma's human rights record is exceptionally dismal, and groups have been trying to get CVX to include a resolution this proxy season requiring Chevron to develop country selection for investment projects in terms of human rights. The AFL-CIO was part of the effort, and offers this:

BE IT RESOLVED: the shareholders request the Board to review and develop guidelines for country selection and report these guidelines to shareholders and employees by October 2008. In its review, the Board shall develop guidelines on investing in or withdrawing from countries where:

the government has engaged in ongoing and systematic violation of human rights

a government is illegitimate

there is a call for economic sanctions by human rights and democracy advocates and/or legitimate leaders of that country

Chevron’s presence exposes the company to the risk of government sanctions, negative brand publicity, and consumer boycotts

The fact that the SEC has issued an opinion in this case to the effect that Chevron must include this in its proxy season voting is a victory for many socially conscious investors concerned about human rights. The date of the vote is May 28.

For a related article, check out David Neubert's A Protest Against Chevron Paying Royalties to Burmese Government: What Should A Shareholder Do? and for more information on other socially conscious corporate proxy voting measures, take a look at the Proxy Season Preview 2008.

Disclosure: I do not own CVX. I am not a member of the AFL-CIO.

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