Ethical Funds releases proxy voting guidelines

Ethical Funds Inc. has introduced a set of social guidelines for voting its shares in the companies it holds. The company is the first Canadian mutual fund company to publish its voting policies. 

Ethical Funds Inc. (EFI) released information on the policies May 29 as part of its launch of a new web site describing socially responsible investment. In late-June, EFI added details of the new policies on proxy voting guidelines and corporate dialogue. 

Bob Walker, Vice President, Socially Responsible Investment Policy and Research, said the guidelines are integral to the company's approach to social investment. 

"Ethical Funds regards the proxies we hold on behalf of our unitholders as significant corporate assets," he said. 

EFI will vote shares in companies it holds according to the company's ethical principles. "By voting shares in this way and by engaging companies in discussions concerning areas where they could be doing better in terms of social and environmental performance, we can more fully express our concerns and encourage companies to become more accountable to stockholders." 

Corporate dialogue is the process of communicating with companies on issues of social or environmental importance. Proxy voting is the process of voting shares held in companies. 

Last year Ethical Funds joined with other investors in voting proxies held on behalf of its unitholders to support a shareholder resolution at Home Depot asking the firm to report on its policy towards phasing out use of old growth wood. Several months later, the company publicly announced a plan to phase out sales of wood from endangered forests by 2002. For details on the new policy visit Ethical Funds

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