Church Groups Ask Firms to Cut Ties to South Africa

Church-related groups have filed a record number of stockholder resolutions challenging U.S. business practices in South Africa, the National Council of Churches reported.

The Interfaith Center on Corporate Responsibility, which is related to the council of churches, said this week that 69 companies have received 75 shareholder resolutions from about 100 religious organizations.

Timothy Smith, executive director of the center, said 12 firms were the targets of church-related shareholder resolutions on South Africa, including three in which the church agencies are being joined by the New York City Employees’ Retirement System.

Firms involved in the co-sponsored resolutions include Phibro-Salomon Inc., Motorola Inc., and Manufacturers Hanover Trust. The resolutions ask the companies to stop sales to the South African police and military, banks to end loans to the government and companies to sign the Sullivan principles--a set of guidelines established by the Rev. Leon Sullivan to promote racial and economic equality by U.S. firms.

Churches and church agencies are also filing resolutions with Texaco Inc., Chevron Corp. and Newmont Mining Corp., saying that unless South Africa takes steps to dismantle apartheid--steps specifically outlined by Nobel Peace Prize-winner Bishop Desmond Tutu--the firms should withdraw.

A resolution citing the Raytheon Co. asks the firm to end sales to the South African government, Singer Co. and Nalco Chemical Co. are pressed to make greater progress in implementing the Sullivan principles, and Cigna Corp. is urged to terminate its South African insurance business.