A shareholder resolution sponsored by The Ethical Funds Company calling on Power Corp. to address human rights issues in China received 10 per cent support by investors, a significant level of support among the non-majority-owner investors.

The proposal called on Power to protect and promote human rights in Tibet and China. It filed the proposal because of Power’s participation in a joint venture with Bombardier for the construction of rail cars that will be used on a controversial railway linking China and Tibet.

The resolution received 10 per cent of support by investors. The resolution was on the agenda of the company’s annual meeting  May 10.

"Given that the Desmarais family controls more than 63% of Power Corporation's voting rights, this result means that a significant proportion of shareholders want Power to address the human rights issue," said Robert Walker, Vice President of The Ethical Funds Company.  

In a release, The Ethical Funds Company said Tibetans fear that the railway will have negative environmental impacts as well as extend the ability of the Government of China to assert its authority and control in Tibet. China has a well documented history of human rights violations both within China and in Tibet. Power Corporation has yet to develop a policy to help promote and protect human rights in countries where human rights violations occur.

In concluding the meeting, Chairman and Co-CEO Mr. Paul Desmarais, Jr. acknowledged that Power is willing to examine existing voluntary frameworks for promoting and protecting human rights. The United Nations Global Compact was identified as one possibility for moving forward on the issue. The Global Compact asks companies to adopt and implement 10 universal principles in the areas of human rights, labour rights, environmental protection, and anti-corruption.

"The Ethical Funds Company is not asking for Power Corporation to divest from China," said Walker. "We are asking that Power Corporation begin to systematically assess the human rights implications of its investment activity and implement a human rights policy to mitigate these risks. This is both warranted and prudent given the company's exposure to investments in China and Tibet.”

For more information: http://www.savetibet.org/documents/document.php?id=34.

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