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11 July 2002, Update
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BART AND JOHN'S UPDATE ON CORPORATE REFORM

by Bartlett Naylor, Director, Green CAP and Dr. John Osborn, Chair (Railroads & Clearcuts Campaign)

Summer, 2002

Dear friend of the Green Corporate Accountability Project:

Our efforts at corporate accountability won special attention from investors and media this spring.

BOISE CASCADE: At Boise Cascade, we tied the record for annual meeting votes, winning 80% on a proposal calling for annual director elections. We also scored a victory on a second accountability initiative, this one aimed at removing a layer of insulation of management known as a "poison pill." Both efforts drew coverage in the Idaho Statesman:

"[JUSTIN] HAYES said the board´s stance on opposing the so-called roadless initiative is a perfect example of how the board is out of touch with its shareholders and consumers." Hayes is program director for the Idaho Conservation League. Improving accountability, we argue, is necessary to improve corporate behavior on all fronts, including environmental obligations.

WEYERHAEUSER: we also won a resolution for annual director elections. The Seattle Post-Intelligencer: "Resolutions supporter SAMANTHA MACE said Weyerhaeuser's logging history and practices, particularly in the Coos Bay, Ore., region, have been far from sustainable' and the company has demonstrated 'lackluster environmental stewardship'."

Thanks Sam and Justin for representing these initiatives so articulately.

POTLATCH: we scored an impressive 13% for a resolution calling on the company to explain the relationship of its dividend policy--they've been paying more in dividends then they earn for several years--and the Weyerhaueser family ownership, estimated at more than 40%. This 13%, representing $100 million worth of stock, shows that our concerns are shared by a sizeable number of shareholders who aren't in the family.

Why is the Weyerhaeueser family important? This family exercises enormous control over the destiny of Snake River salmon, since the company is a prime beneficiary of the dams threatening extinction to this western emblem. The Spokesman Review published several stories:"Our effort is to find common ground between people concerned with the environment and Wall Street investors. Oftentimes, environmental problems are symptomatic of an underlying problem with corporate accountability," said Osborn, co-founder of the Spokane-based Lands Council.

PLUM CREEK AND GEORGIA PACIFIC: we scored respectable votes on the CERES principles, aimed at improving dialogue between management and the community.

Thanks MARY KIESAU national coordinator for the Lewis & Clark Bicentennial Campaign of the Sierra Club, for your presentation at Plum Creek's meeting. An excerpt: "At Lolo Pass on the Idaho-Montana border thousands of Americans will be retracing the steps of Lewis & Clark. In Idaho is one of the last remaining sections of the trail that is as wild today as it was 200 years ago. Here are the nurseries for Pacific salmon, blue ribbon trout fisheries, and bountiful herds of elk. What Americans will see along the Idaho-Montana border will shock them. Plum Square has logged square mile clearcuts on incredibly steep mountain slopes."

Thanks MELINDA RIDER for your expert presentation at Georgia Pacific in Augusta, Ga..

Thanks also to an important funder who made a well appreciated contribution that helped make our efforts possible.

Perhaps the most pungent summary of our efforts--an editorial from The Idaho Falls Post Register:

"Here's an unexpected headline: Boise Cascade Corp. pledges not to cut down trees 200 years of age and older. Now here's the story behind it: Conservationists . . . [have] begun to invade the corporate boardrooms, holding management accountable to shareholders and other clients - who believe corporate profits and wise stewardship of natural resources are not mutually exclusive. Conservationists used the stockholders' meeting to spotlight Boise Cascade's hostile lawsuit against the federal initiative to protect 58 million acres of roadless forests. And they reminded Weyerhaeuser shareholders of what was described as "a devastating legacy of clear-cutting damage and chemical water pollution," particularly near the Oregon coast. . . . John Osborn, a Spokane physician who organized the Lands Council to fight "hit-and-run" foresting in northern Idaho and Washington nearly a decade ago, originated this green invasion of natural resource company boardrooms. . . . Osborn's tactic is getting through - however slowly. The surest proof is Boise Cascade's decision to spare old growth. No government regulation forced the company to take that step. It acted in its own best interests."

In the coming months, we aim to continue outreach to potential allies, and advantage the nation's newly keen interest in corporate accountability. Have a happy summer exploring (what's left of) America's natural majesty.