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A
shareholder proposal sponsored by The Ethical Funds Company calling
for Nortel Corp. to protect human rights in Tibet and China received
the support of 32.7% of shareholders at the company’s annual
general meeting June 29.
The
shareholder proposal asked Nortel to adopt a human rights policy
because of its ownership position in three subsidiary companies
located in China, and for its involvement in the controversial
Qinghai-Tibet Railway.
“This
vote demonstrates that shareholders want Nortel to protect and
promote international human rights standards in China,” said
Robert Walker, Vice President, Sustainability, at The Ethical Funds
Company.
Nortel
has not responded to earlier invitations by The Ethical Funds
Company to meet and discuss human rights issues in China.
“While
most people agree that governments bear the primary duty to ensure
protection of human rights, many – if not most – of the
world’s major firms are aware that they have human rights
responsibilities, have adopted human rights policies and practices,
think systematically about them, and have instituted at least
rudimentary internal and external reporting systems,” said
Jennifer Coulson, Senior Sustainability Analyst at The Ethical Funds
Company.
“We
will now go back to Nortel, armed with this result, and again invite
the company to sit down with us and other experts to discuss how the
company can ensure that its operations advance the observation of
international human rights standards.”
A
proxy alert published by the Shareholder Association for Research
and Education (SHARE) supported the resolution. SHARE said
Nortel’s activities in China could make it complicit in domestic
surveillance for state repression. It suggested this could leave the
company liable for prosecution or litigation under international
human rights legislation.
“In
light of the risks this situation poses to investors, we believe
Nortel should adopt a comprehensive human rights policy for its
operations in China and Tibet, and take action to implement and
report on that policy,” stated the SHARE alert.
For
more information, visit www.ethicalfunds.com.
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