05377
July 13, 2005

‘Big-box’ ethics

Investment firms issue behavior guidelines
for big retailers like Wal-Mart

by Hugh S. Moore
Religion News Service

WASHINGTON —Two ethics-oriented financial-management companies with investments in large-scale stores such as Wal-Mart have issued guidelines intended to minimize the community opposition that often arises against new “big box” retail outlets.    

     Christian Brothers Investment Services (CBIS) and Domini Social Investments have large-scale retail investments in their portfolios and control nearly $6 billion in assets. CBIS manages Roman Catholic institutional investments for various dioceses, educational and religious institutions. Domini manages mutual funds for investors “seeking to create a positive change in society,” according to the report.       

     CBIS Corporate Advocacy Coordinator Julie Tanner said store siting is a central component of a retailer’s business plan, and the implications can be far-reaching. She insisted that ethical considerations make good financial, as well as moral, sense.       

     “Conflicts can damage a company’s reputations and impact consumer confidence,” Tanner said. “As retailers expand throughout the United States and abroad, we believe they must take proactive steps to engage with communities and ensure that their cultural and environmental heritage remains intact.”      

     Domini General Counsel Adam Kanzer said the guidelines should serve as a useful “starting point” for companies facing site-selection issues.       

     “Companies have damaged their relations with communities by contributing to urban sprawl, siting stores on land sacred to indigenous peoples, and circumventing the open market by acquiring land through eminent domain proceedings,” Kanzer said. “We believe these problems can be avoided.”     

     In one controversial case, the town of Dunkirk, MD, passed a law restricting the size of retail outlets to 70,000 square feet after Wal-Mart announced it would build in the area. Wal-Mart’s response was to draw up plans for two stores next door to each other. But in May, Wal-Mart abandoned the idea in the face of intense community opposition.      

     The guideline headings proposed by CBIS and Domini include:      

• social and environmental diligence;
         
• transparency;  
   
• community consultation; 
     
• relations with governments;  
    
• respect for indigenous cultures;    
    
• preservation of cultural heritage;   
   
• environmental stewardship;   
      
• protection of biodiversity; and  
   
• smart growth.