Contact: Jack Ucciferri – (707) 252-6166
FOR IMMEDIATE RELEASE
August 13, 2007
Napa, California
Shareholder Proposal Would Heighten Corporate Director Responsibility at Monsanto
Napa, California -- Harrington Investments, Inc., (HII) a socially responsible investment advisory firm, has introduced a binding by-law amendment that would limit Monsanto Corporation's ability to protect directors when they violate their fiduciary duty in cases resulting in 'harm to the natural environment, public health, or human rights.'
"Monsanto has a long history of selling potentially dangerous chemicals and genetically engineered products that may negatively impact human health and the global environment, as well as impair shareholder value," said John Harrington, President and CEO of Harrington Investments. "Corporate directors need to take personal responsibility in overseeing management to insure that the corporation's actions speak louder than the CEO's words."
Hugh Grant, Monsanto's CEO, has recently written that "an unwavering commitment to integrity in all business operations is at the core of our corporate behavior. We must never take this commitment for granted. Integrity means doing what is right even when we are faced with situations not governed by any specific law or regulation. Sometimes the right thing to do is not clear, but at Monsanto our job is to seek and find the right answer in every business situation."
Harrington echoed Grant's statement; adding "The bylaw amendment that we are proposing will assist Monsanto's management in the fulfillment of its stated commitment by reducing the likelihood that Monsanto's board of directors will tolerate practices that might tarnish their image or lead to damaging lawsuits."
The proposed amendment is particularly relevant to Monsanto's board of directors. Monsanto has long been criticized for a wide array of alleged misconduct. In recent years, Monsanto has paid a $1.5 million fine for bribing Indonesian officials, been accused of illegally importing genetically modified seed into the European Union, been found guilty of false advertising, paid tens of millions of dollars in fines for cleanup of pollution, and been fingered for illegally dumping toxic waste near a residential area.
This resolution is the latest in Harrington Investments' long ownership advocacy relationship with Monsanto management. Last year, a similar proposal to restrict board indemnification was withdrawn on technical grounds. A 2005 resolution called for the formation of an ethics oversight committee in response to Monsanto being fined for violating the Foreign Corrupt Practices Act. That resolution never made it to the shareholder ballot because Securities and Exchange Commission staff allowed Monsanto to omit it from the proxy, deeming it "ordinary business." In prior years, HII has filed several proposals urging Monsanto to disclose its policies toward the sale of potentially carcinogenic pesticides. HII has also participated in a long-standing campaign to end the company's involvement with child labor in India.
For the past 25 years, Harrington Investments, Inc. has been a pioneer in socially responsible investing and shareholder advocacy. HII manages approximately $200 million in assets for institutional and individual investors concerned with the social and environmental, as well as financial performance.
In addition to Monsanto, Harrington has introduced several other binding corporate bylaw amendment resolutions this year. If approved, these bylaw proposals would result in such innovations as the creation of corporate human rights committees.
Harrington concluded by saying: "As a responsible fiduciary, it is my job to promote corporate policies that will increase long-term shareholder value as well as protect global human rights and promote a safe and healthy environment."
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