Committee Chairman Brian Ellison called the outcome a “glowing example of the potential for the work of MRTI,” which works with corporations in which the Presbyterian Church (U.S.A.) owns stock to ensure the companies meet ethical standards.
In Time Warner’s case, MRTI began engagement about four years ago. Time Warner licenses vendors to produce toys and other merchandise featuring its cartoon characters, and MRTI wanted to ensure that the company had a policy outlining and monitoring fair labor practices.
In the years since MRTI’s initial engagement, Time Warner went through several changes, including the hiring of a new CEO, Ellison said.
With these changes, MRTI was unclear on whether Time Warner was still dedicated to the ethical sourcing guidelines it had set years before. Last fall, MRTI filed a shareholder resolution calling for a review and transparent reporting on these guidelines.
After the resolution was filed, MRTI agreed that it would be withdrawn under four conditions: the CEO’s letter to stockholders in Time Warner’s annual report would affirm the company’s commitment to its guidelines; MRTI would speak about the need for such guidelines at the annual stockholders meeting this spring; Time Warner would share with MRTI a confidential draft of its sustainability report for review before publication; and Time Warner and MRTI would meet in the fall to evaluate progress.
