Lockheed Martin's recently reported decision to bar discrimination based on sexual orientation demonstrates the influence colleges and universities can exert to bring about social and ethical change in society, according to Swarthmore College officials.
Swarthmore on Nov. 18 informed Lockheed Martin of its intent to refile a shareholder resolution urging the company to bar discrimination on the basis of sexual orientation in its equal employment opportunity policy. Three days later [as reported in the Washington Post], the company announced in an e-mail to employees its plans to add sexual orientation to the policy.
"We commend the people at Lockheed Martin on their decision and look forward to receiving a copy of their new policy from them," says Suzanne Welsh, Swarthmore vice president for finance and treasurer. "This really shows the power shareholders have to bring about positive social change. Among colleges and universities with significant endowments, our status as shareholders is an opportunity to influence society. I hope the college's action helps lead the way for similar efforts in the future."
The college first presented its resolution at the company's annual shareholders meeting in San Diego on April 25. Although the resolution was rejected by the majority of shareholders, it exceeded the minimum percentage of votes required for the College to resubmit it.
The resolution -- the first in the country solely initiated by a college or university since the anti-apartheid movement in the 1980s* -- is the work of the college's Committee for Socially Responsible Investing. The committee, chaired by Harvard University Business School professor emeritus and college board member Samuel L. Hayes III '57, is comprised of students, college administrators, and members of the investment committee of the board. The committee prepared the resolution in consultation with the Equality Project, a non-profit organization in New York devoted to securing equality in the workplace for lesbian, gay, bisexual, and transgendered employees.
Since the college introduced its resolution, Lockheed has faced increased pressure to change its policy from its employees in GLOBAL [Gay, Lesbian or Bisexual at Lockheed Martin]. In August, the company also received a zero rating from the Human Rights Campaign, a Washington, D.C.,-based gay rights advocacy group.
To file a resolution, a shareholder must have $2,000 or more invested in the company and must have held it for at least a year. Lockheed Martin is only one of the many companies in which Swarthmore holds stock. As of Nov. 30, 2002, Swarthmore's endowment is valued at approximately $850 million.
Located near Philadelphia, Swarthmore is a highly selective liberal arts college with an enrollment of 1,450. Swarthmore is consistently ranked among the top liberal arts colleges in the country.
* according to Carolyn Mathiasen at the Investor Responsibility Research Center, 202-833-0700
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