Investor Advocates for Social Justice (IASJ) vehemently opposes the SEC’s announcement of its intent to rescind the shareholder proposal rule, breaking with over 80 years of precedent. 

For over 50 years, IASJ (formerly known as the Tri-State Coalition for Responsible Investment) has represented faith-based investors who have leveraged their holdings in companies to promote human rights, climate justice, racial equity, and the common good. Faith-based investors, including those whom IASJ represents, believe their investments should be made in accordance with the principles of their faiths – principles that uphold human dignity and care for creation. 

Shareholder proposals have been a pivotal tool faith-based investors have utilized over many decades to encourage companies to respect human rights and the planet, to improve corporate governance practices, and to ensure long-term shareholder value is prioritized over short-term gains. Rescinding the shareholder proposal rule would effectively cut off a vital channel through which many faith-based investors put their faith into practice in their stewardship. We believe rescinding the shareholder proposal rule would greatly undermine shareholder rights and significantly impede faith-based investors’ ability to invest and engage with companies in a manner aligned with their faith.  

IASJ will defend the shareholder proposal rule vigorously. We will continue filing shareholder proposals when we believe our dialogue approach is unfruitful. We will continue to engage with companies on the importance of the shareholder proposal process, for both investors and companies. And, we will continue to call on the SEC to carry out its stated mission “to protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation.”