Would you care for side of genocide with that?
This morning while taking the mail to the door, I casually looked over the proxy ballot my wife received from Fidelity Investments. She holds Fidelity Diversified International Fund in her 401(k). By law they are required to confirm new board members by a vote of the shareholders. Sometimes companies slip in 'pork belly' votes on the proxy ballot too. Nothing too shocking or that really really has to do with business. This one was different. The second question after confirming the board read:THE BOARD OF TRUSTEES RECOMMENDS A VOTE AGAINST THE FOLLOWING
5. Share holder proposal for Fidelity Canada Fund, Fidelity Diversified International Fund, Fidelity International Discovery Fund, Fidelity Mid-Cap Stock Fund, and Fidelity Overseas Fund concerning Board oversight procedures to screen out investments in companies that substantially contribute to genocide.
Wow! I had to read that twice. So, let me get this straight, the Board is against screening out companies that substantially contribute to genocide. Well I don't know about you but I for for one have always been against genocide. So (and this is where I believe they tried to pull a sneaky Pete) I voted for the oversight. Can you really argue that genocide is ok as long as we're making money? Come-on-people! Genocide is not ok! Genocide is not even close to ok. Even for billions and billions of dollars. People should not be legally allowed to own shares of, partner with, or even look at companies that substantially contribute to genocide (And I love too how how they slip in 'substantially' as a safe guard. I can hear the lawyers arguing already, 'Its really not a substantial amount of genocide. Its a small genocide really that we feel provides a high valuation for us.'). Genocide is bad. End of story. If you knowingly invest in companies that contribute to genocide I will not be a part of it.
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I'm not going to defend Fidelity in this case, but sometimes there is more to these votes than meets the eye. For example, the company may already be internally addressing the issue, so the board recommends a vote against the proposal because it would create a redundant effort or would result in board intervention into something that's already being addressed. One of the public SEC filings is a shareholder report that can include a statement from the board about WHY they make these recommendations. It's a shame this doesn't always accompany the ballot, but you might look into that filing in this case and see what they said.
'sometimes there is more to these votes than meets the eye' Very true. I hope that this is the case. There are many people who believe investing in a company does not tie you morally to actions of that company. That when you buy shares you are simply purchasing a commodity that may or may not go up in value. I believe we have a social responsibility to cast ballots with our dollars and buy shares, products, and in this case funds that align with our own values. In this case, I don't support genocide, and therefor would not like to be a part of a fund that purchases shares in company which does. I would like to hope that you are right and that there is more going on behind the scenes, but, I can see a board (at Fidelity or another high profile investment agency) turning the other cheek in order to make a substantial profit. I'm not saying that this is what they are doing, because I do not know, but it sure comes off that way.
As a side note, my wife suggested (jokingly) that we withhold taxes because so much of the money will go to funding this ridiculous war.
As a side note, my wife suggested (jokingly) that we withhold taxes because so much of the money will go to funding this ridiculous war.
Genocide is a mother not even twenty years of age carrying her half dead newborn down to the corner, with bloodshot red eyes that never stop crying, and a voice that never stops pleading for help.
Bud
Bud
# posted by 
: 12:23 AM
: 12:23 AM hi michael,
i wrote an almost identical post when my husband received his proxy ballot in the mail (www.anastamosis.blogspot.com). it's pretty ridiculous that Fidelity would try to pull one over on us like that. unfortunately, i'm pretty sure that there is NOT "more than meets the eye" in this case, as the Fidelity Board gives a clear explanation in the fine-print-packet about why they are opposed to taking moral issues (even something blatantly evil, like genocide) into account when making their investments.
they are clearly for making investments purely based on financial motives, and they even say they will make any investments that are legal regardless of whether that money will be used to fund genocide or war or whatnot.
in any case, good luck with socially-conscious investing!
i wrote an almost identical post when my husband received his proxy ballot in the mail (www.anastamosis.blogspot.com). it's pretty ridiculous that Fidelity would try to pull one over on us like that. unfortunately, i'm pretty sure that there is NOT "more than meets the eye" in this case, as the Fidelity Board gives a clear explanation in the fine-print-packet about why they are opposed to taking moral issues (even something blatantly evil, like genocide) into account when making their investments.
they are clearly for making investments purely based on financial motives, and they even say they will make any investments that are legal regardless of whether that money will be used to fund genocide or war or whatnot.
in any case, good luck with socially-conscious investing!
Kristin, thanks for going the extra mile and researching the proposal a bit. I'd really like to hear someone at Fidelity defend the decision that genocide is good for business. But I guess that's the beauty of it, without oversight, they can happily ignore the killing. The Board only needs to see the numbers and not the blood. I swear this world gets worse by the minuet.
Mike, I found this article:
http://www.dollarsandsense.org/archives/2007/0507sturr.html
and this one:
http://fidelityoutofsudan.googlepages.com/
Bud
http://www.dollarsandsense.org/archives/2007/0507sturr.html
and this one:
http://fidelityoutofsudan.googlepages.com/
Bud
# posted by : 1:36 PM
: 1:36 PM I got this one today and honestly I usually skim over it and vote, but I saw the same thing and then called everyone I knew to let them know to not just blindly vote on this one.
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