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Calvert Links Amid Strong Governance And Shareholder Value

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Written by Subhasis Chatterjee   
Saturday, 26 May 2007

It has come to the knowledge from the latest report of the Calvert Socially Responsible Investing that companies with the best corporate governance, environmental, and social standards are strongly positioned for long-term success. According to its report, in a span of the last few years, the saga of poor corporate governance has threatened the US economy to the greatest extent, rendering into large scale reduction of employment and the employees without their retirement savings, thereby smashing up the prospects of companies in general.

It has been stated that the Calvert keeps a close watch on the copious aspects of corporate governance that takes account of management and board compensation, diverse and independent boards, and affirmative programs to protect civil liberties. The most important apprehension to the Calvert in this area is political contributions that corporations make with shareholder dollars, has been avowed.

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According to the latest Mason-Dixon survey conducted for the Center for Political Accountability, among approximately 85 percent of respondents there is a general agreement that that shareholder value gets threatened utmost through the paucity of transparency and oversight of corporate political contributions. It is due to this, the shareholders in general are concerned about the concept whether corporate political expenditures are in apposition to enhance a company's interests driven towards the emergence of a greater accountability and board oversight of corporate political activity. The Company is stated to believe that there happens to be an urgent need for the companies to make obvious that management and directors have adequate management systems in place, along with the necessitate to divulge a transparent and thorough depiction of political expenses to shareholders. The scrawny corporate management of political spending, however, is in a position to metamorphose a company susceptible to fines and lawsuits while damaging its reputation at best.

The Calvert having an intense intention to recognize companies having brawny governance practices have been working with companies that are strong in other areas of the Company’s social criteria, when they fall short. It has been mentioned in this regard, that Unisys, an S&P 500 company operating in the information technology sector proficiently, stands out in many social areas, to be precise in the environmental realm. The said company has been upbeat in the reduction of its environmental footprint and implementation of numerous programs to reduce energy consumption.

In the recent years a number of US companies have been found adopting forward-looking policies in the realm of political spending like Pfizer. This is a premiere company with which the Calvert was engaged through a shareholder resolution in 2007.


 
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