Climate and Sustainability Shareholder Resolutions Database | Ceres

Establish board committee on human rights (PM, 2017 Resolution)

Industry Tobacco
Sector Consumer Staples
Filed By Michael Crosby
Votes 3.57%
Status Vote
View Memo

Organization: Philip Morris International, Inc.

Year: 2017

Whereas: Whereas: In 2011 the United Nations released Guiding Principles on Business and Human Rights. Among peoples basic rights are the right to life and liberty, education and welfare, including the right to health. In an effort to abide by these Principles, PMI became a member of the UN's Global Compact on Human Rights on June 19, 2015. Later, The New York Times featured extended articles outlining how PMI, through its involvement in the United States Chamber of Commerce, has undermined nations efforts to protect their citizens from smoking related harm and deaths (U.S. Chamber of Commerce Works Globally to Fight Antismoking Measures, June 30, 2015; U.S. Chamber Fights Smoking Laws While Hospitals and Insurers Sit on Its Board, July 1, 2015; Big Tobacco's Staunch Friend in Washington U.S. Chamber of Commerce, October 9, 2015). The Times noted this effort involves a three pronged strategy in the Chamber's global campaign to advance the interests of the tobacco industry in face of countries efforts to curb the use of tobacco 1) the Chamber lobbies alongside its foreign affiliates to beat back antismoking laws; 2) in trade forums, the Chamber pits countries against each other and 3) in the widely reported efforts of the Chamber to defend the ability of the tobacco industry to sue under future international treaties, notably the Trans Pacific Partnership (TPP). A February 25, 2015 Washington Post piece reported that a section of the then proposed TPP's Investor State Dispute Settlement (ISDS) was used by Philip Morris to stop Uruguay from implementing new tobacco regulations intended to cut smoking rates. However, when this issue was taken to the World Bank's International Center for Settlement of Investment Dispute, it decided in favor of Uruguay's right to regulate tobacco packaging for the public health and has ordered PMI to pay $7 million to cover fees and expenses (https business humanrights.org en intl tribunal rules uruguay has right to protect public health through tobacco regulation in case brought by philip morris). Commenting on Big Tobacco's controversial, ailing crusade such as the above, The Economist noted (August 6, 2016) that such avenues may be closing due to recent rulings by the World Bank and the European Court of Justice that make it likely that more governments will in future prioritize public health over IP. PMI has a right to protect and ensure its intellectual property rights (IP). However, the proponents of this resolution believe any related rights are secondary to human rights, especially peoples right to health and governments rights to ensure their citizens health, especially when the degree and expanse of this global corporate industry effort to undermine such governments efforts is not publicly known. RESOLVED that PMI's independent directors create a Review Committee to review, adapt, and monitor the Company's human rights policy to ensure that its global and national lobbying and marketing practices, as well as those of industry bodies to which it belongs, are not undermining efforts of sovereign countries to protect their citizen's health. This Review Committee shall report its findings annually in conjunction with PMI's annual meeting.

Resolved: Resolved: That PMI's independent directors create a Review Committee to review, adapt, and monitor the Company's human rights policy to ensure that its global and national lobbying and marketing practices, as well as those of industry bodies to which it belongs, are not undermining efforts of sovereign countries to protect their citizen's health. This Review Committee shall report its findings annually in conjunction with PMI's annual meeting.

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