Last week, representatives from Sprawl-Busters, as part of a larger coalition, attended the annual shareholders meeting of TIAA-CREF, the nation’s largest pension fund, with holdings of over $350 billion. CREF, the educator’s pension fund, holds at least $1.2 billion in Wal-Mart stock, yet tells the world that they are investing “for the greater good.” Sprawl-Busters helped organize a “dump Wal-Mart stock” rally outside CREF’s Boston office recently, handing out $20 bills with the face of Wal-Mart President Rob Walton, insisting that the pension fund divest its Wal-Mart holdings. The following statement was read by Sprawl-Busters representative Regina Discenza of New Jersey inside the TIAA-CREF annual meeting: “My name is Regina Discenza. I am a member of a grassroots citizens network called Sprawl-Busters…I live in Lacey, New Jersey, a town that has seen more than its share of inappropriate development from corporations like Wal-Mart. I am here today to urge TIAA-CREF to practice what you teach. In your Statement on Corporate Governance, you say that TIAA-CREF gives “careful consideration to issues of Social responsibility and the common good.” You say you support “efforts to promote good corporate citizenship.” You tell shareholders that you measure corporate citizenship:
?? By the environmental impact of the corporation’s operations
?? By Equal employment opportunities
?? By actions that do not negatively affect the common good of the corporation’s communities.
Yet TIAA-CREF has taken pensioners’ money, and bought more than 23 million shares of Wal-Mart, which, as of your last prospectus, had a value of roughly 1.2 billion dollars. Why are less than 2% of TIAA-CREF’s assets in a “social choice” fund? Does that mean CREF is 98% socially irresponsible?Your Wal-Mart stock is an investment in world-wide exploitation — from the sweatshops in Shenzhen, China, to the sales floor in Lacey, New Jersey. Wal-Mart has been internationally criticized for the working conditions of its factory labor in Third World countries; its harmful environmental and land use practices in the United States; its abusive track record with its own employees — sued for forcing off the clock work, for sexual, racial and disability discrimination; and for its war against small town quality of life. I watched Wal-Mart destroy an historic piece of property in my hometown — ironically known as the Good Luck Farm. It’s time to read the writing on the WAL. It’s time to hold Wal-Mart to basic ethical standards for socially responsible investments — or to divest your Wal-Mart stock. THAT would be a very powerful lesson to share with the thousands of educators who want to believe your TV ads that say you are “investing in the greater good.” It would be a far greater good… if you divest your Wal-Mart stock.”
The opposition to TIAA-CREF’s investment policies is being led by The Coalition to Make TIAA-CREF Ethical, of which Sprawl-Busters is a member. The Coalition has repeatedly asked CREF to drop Coke, Wal-Mart, NIKE, and other stocks from its portfolio of investments. CREF has done nothing to respond to the increasing pressure to clean up its holdings. For more background on the Coalition’s work, contact [email protected]
