Wal-Mart Shareholders Seek Human Rights, Social Impact Reviews

ELLIOT ZWIEBACH

BENTONVILLE, Ark. — Shareholders of Wal-Mart Stores here have proposed that the company establish a human rights committee. Proponents of the proposal, to be voted on at the retailer’s June 6 annual meeting, said in the company’s proxy statement that such a committee “would rectify the failure of corporate governance [to] review and make policy recommendations regarding human rights issues raised by the company’s activities and policies … that damage our brand and thereby long-term shareholder value.” In opposing the measure, Wal-Mart said it already has ethical standards in place that address the treatment of its own employees and those of its suppliers; it also said it believes the board of directors as a whole should continue to be the primary body “to oversee and monitor our actions and efforts in the matter of human rights.” Another shareholder proposal asks the company to issue a report on “the negative social and reputational impacts” of off-the-clock work and other instances of lowering employee pay or mistreating workers — allegations that have led some consumers to stop shopping at Wal-Mart, proponents indicated. Wal-Mart said it opposes that proposal as well, explaining, “We have vigorously defended ourselves against and consistently denied allegations of non-compliance with legal and regulatory controls in legal proceedings brought against our company based on labor law-related claims. This proposal … proceeds from the assumption our management has not complied with those controls and standards.”

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