Proxy Voting Guide

As a socially responsible investor with fiduciary obligations, we endeavor to vote proxies in alignment with the financial interests of clients while honoring the Social Principles of The United Methodist Church. In keeping with this policy, we have developed a comprehensive set of guidelines that represent our position on a variety of proxy voting issues.

The guidelines cover:

• Issues relating to corporate governance
  • Board of directors
  • Stock distribution
  • Executive compensation
  • Mergers and acquisitions
  • Other proposals

• Social issues
  • Human rights
  • Equal employment/diversity (eeo) report/diversity on boards of directors government activities
  • Emerging markets
  • The environment
  • Sustainability reporting
  • Bank lending policies
  • Militarism
  • Health
  • Tobacco

A complete set of guidelines is also available.

Voting Guidelines

While our fiduciary obligations guide all of our investment and voting activities, our positions are informed by ¶163 and ¶163I, from the Social Principles of The United Methodist Church:

• We claim all economic systems to be under the judgment of God no less than other facets of the created order. Therefore, we recognize the responsibility of governments to develop and implement sound fiscal and monetary policies that provide for the economic life of individuals and corporate entities and that ensure full employment and adequate incomes with a minimum of inflation. We believe private and public economic enterprises are responsible for the social costs of doing business, such as employment and environmental pollution, and that they should be held accountable for these costs. (¶163)
• Corporations are responsible not only to their stockholders, but also to other stakeholders: their workers, suppliers, vendors, customers, the communities in which they do business, and for the earth, which supports them. We support the public’s right to know what impact corporations have in these various arenas, so that people can make informed choices about which corporations to support. We applaud corporations that voluntarily comply with standards that promote human wellbeing and protect the environment. (¶163I)

We have instructed Glass Lewis, our proxy voting agent, to vote in accordance with these guidelines; all proxy ballots are reviewed for compliance. Where no clear guideline exists, proxies are voted on a case-by-case basis, with consideration given to the recommendations of both the proxy voting agent and company management.