Corporate Responsibility and the Passionist

(The Interfaith Center on Corporate Responsibility (ICCR) is begining to celebrate its 40th anniversary. ICCR has been the organizational giant that has led religious communities here in the United States in developing the ministry of corporate responsibility. The Passionist have played a role in this social ministry by addressing issues that are of particular concern to us, our international community, and our spirituality. Fr. Michael Hoolahan, CP has worked with ICCR since the late 1970′s. What follows is his article on the Passionist relationship with ICCR and this social ministry.)

Corporate Responsibility has a long history in Holy Cross. In the early 1970’s the province, under the leadership of Fr. Neil Parson’s its Treasurer, began the development of an investment fund to support its ministries. At the same time some protestant churches led by the Episcopalians and United Methodists began to see the connection between their economic power as shareholders and the ability to change corporate policies and behavior. The catalyst was a request from the churches of South Africa that the international community join the fight against apartheid. Large transnational corporations were seen has supporting the white government’s suppression of the black population. A movement began here to ask large US corporations such as General Motors and Ford to leave South Africa. The large New York banks were asked to cut off lending.

Shareholders are the real owners of corporations. Shareholders elect the corporation’s Board of Directors who in turn hires top management to operate the company. The church shareholders felt the need to coordinate their efforts and set up in NYC the Interfaith Center for Corporate Responsibility.

In 1969 the Passionists had renewed their Constitutions. The new Constitution spells out in a forceful way that the Passion of Christ continues in the world today in the oppression of the poor, in the denial of basic human rights, in the violence of war, and even in the destruction of the earth’s environment. Fr. Parson’s realized the province’s investment portfolio could address this contemporary Passion of Christ. He began to relate to ICCR and heard about the situation in Chile where a coup against the socialist government of Aliende had installed a military dictator. What concerned him even more was that a large US transnational corporation, International Telephone and Telegraph (ITT), was accused of using money funneled by our CIA to finance the coup. The allegation was that they were afraid the socialist government would nationalize their operations in Chile. This corporation was owned in the Passionist investment portfolio.

Fr. Parsons realized he was in no position to investigate the truth of this accusation. but the Passionists could as shareholders ask the corporation to investigate what happened in Chile and report it to the shareholders and more importantly to adopt a corporate wide policy that they would not fund the violent overthrow of governments where they operated, especially in the third world. With the help of ICCR a resolution was written and sent to the company to be voted upon by all the shareholders at the next annual meeting.

Fr. Parsons asked me to attend the ITT annual meeting in Pittsburgh to move our resolution. I felt very intimidated walking into this enormous hall. There were several other members of ICCR there ready to support and talk very eloquently on this issue. To this day I do not remember the vote. But the important thing was that a light had been thrown on this issue. ITT had to stand up in public to deal with it. Hopefully they would not repeat these actions in other countries of the world. Today corporate management knows that there are shareholders moved by faith that will speak the truth to power.

Fr. Parsons left his position soon after this happened, but I remembered it very well.  In 1987 I was appointed Treasurer. One of my first actions was to have our province join ICCR as a full member.