Ethos publishes a new edition of its corporate governance principles and proxy voting guidelines. The 2012 version reinforces the attention paid to environmental and social challenges facing companies.
The new edition specifies that when the board's proposals constitute a significant environmental or social risk they cannot be approved. Also, the board cannot be discharged for its management of the company, when the company is involved in an accident that had a serious negative impact on employee health or the environment or when the company is accused of serious violations of employee or supplier social rights. In case of mergers or acquisitions, a proposal cannot be approved when the products or the corporate practices of the new entity do not respect the human or labour rights of the employees or seriously harm the environment.
Regarding shareholder resolutions, which are often tabled on the agenda of general meetings of US and Canadian companies, Ethos will support those that aim at improving the company's social responsibility. A list of environmental and social shareholder resolutions that Ethos approves in general is included in the document.
The corporate governance principles and proxy voting guidelines of Ethos underpin the analyses included in the proxy voting reports as well as Ethos' voting recommendations. They also constitute the reference for the dialogue between Ethos and companies.
