Fifty-five years ago, The Episcopal Church became the first institutional investor to file a shareholder resolution on a social issue, calling on General Motors to stop doing business in South Africa. In May 1971, then-Presiding Bishop John Hines presented the resolution at the General Motors annual meeting in Cobo Hall in Detroit.
Soon after, The Episcopal Church and other Protestant denominations and Roman Catholic orders formed the Interfaith Center on Corporate Responsibility, as investors concerned with ethical and faithful investing. Since then, The Episcopal Church has continued to participate in the shareholder proposal process, benefiting as an investor from the governance reforms, policy changes, and increased transparency.
The Securities and Exchange Commission (SEC) has proposed to rescind Rule 14a-8, which, if repealed, would prevent shareholders from participating in the shareholder process. Shareholder resolutions help expose financial risks, strengthen corporate governance, and protect long-term value. Removing these resolutions would decrease transparency, preventing shareholders from identifying problems and giving corporate executives more power.
We join our partners from the Interfaith Center on Corporate Responsibility, Presbyterian Church U.S.A., and other faith communities in calling for you to submit a public comment in opposition to this proposed change. The SEC is accepting public comments on this proposal until Nov. 20. Please join us in submitting a public comment opposing the rescission of Rule 14a-8.
You can use the suggested language below, though we strongly encourage you to edit your submission. You can mention how you individually, or your church or mid-council, relies on proxy voting guidance from The Episcopal Church, if you do.
“Dear Securities and Exchange Commission:
I oppose the SEC’s proposal to eliminate the shareholder resolution rule. Shareholders are owners, and owners deserve a voice in the companies they invest in.
I choose to invest in a way that aligns with my values and that creates long-term shareholder value. I view investments not just as vehicles for financial returns, but as an expression of my faith. The Episcopal Church has been using its voice as a shareholder for over 55 years and has engaged hundreds of companies on issues that affect the company’s long-term financial value and that elevate issues of importance to the church. These have often led to constructive discussions prompted by the filing of a shareholder resolution.
I urge the SEC to reject this proposal and preserve shareholder rights.”
Submit your comment at this link.
Additional resources:
- Interfaith Center on Corporate Responsibility (ICCR)
- ICCR – What is Shareholder Engagement
- Regulations.gov – Writing an Effective Comment
General Convention and Executive Council resolutions:
- 2024-A028: Support the Consideration of Ethical Issues in Investing
- 2024-A163: Affirm the Ongoing Consideration of Ethical Issues in Investing
- EXC0220002.18: Support for Socially Responsible Investing
