ACSR Backs More Disclosure In SEC Rules

The Advisory Committee on Shareholder Responsibility (ACSR) recommended yesterday that Harvard support a move requiring corporations to disclose information on the progress they have made in minority and female hiring.

At the same time the ACSR recommendation University support for measures that would force corporations to disclose at shareholder request, the environmental impact of their activities, and to publish "a detailed statement" of company political contributions."

The committee stopped short of recommending disclosure on all social issues, confining its recommendations to issues that have been the focus of major national legislation. Sabino Redriguez III '74.4, a member of the ACSR said yesterday.

The 14 member committee approved the recommendations proposed by a two member subcommittee with only one dissenting vote.

The committee's recommendations came in response to a U.S. Securities and Exchange Commission request for investor opinion on possible changes in the corporate disclosure sections of the SEC regulations.

Corporations are currently not required to disclose information on their hiring of minorities and women their political contributions in most state and local campaigns, of the environmental impact of their activities.

The ACSR drafted a letter to the SEC containing its recommendations. The Harvard Corporation's subcommittee on Shareholder Responsibility will consider the draft next Monday and inform the SEC of the University's stand on the proposed changes by May 15.

A source close to the ACSR said yesterday that the Corporation subcommittee will probably approve the ACSR's proposed letter with "possible minor changes."

In its proposed letter, released yesterday, the ACSR said that its decision on corporate disclosure was intended to help corporate investors be "responsible shareholders," particularly in voting on proxy issues concerning the luring environmental and political stances of an individual companies.

But assures close to the ACSR said yesterday that several members of the committee favored corporate disclosure because it would shame certain companies into better performance on socially important issues.

The source added that the ACSR did not include the possible social benefits at corporate disclosure in its proposed letter because the SEC is mainly interested in improvements in investors information and not in social benefits.

The ACSR recommended that corporate annual reports summarize their "trends" in hiring of women and blacks and that political contributions and that environmental impact statements which corporations are usually required to make confidentially to local state and federal governments be made available on shareholders requests.

In another action the committee yesterday recommended University support of a shareholder resolution directing the International Telephone and Telegraph Corporation to list in several large newspapers its contributes to political parties and its attempts to influences legislative.

The committee also recommended University absolute on two shareholders resolutions directed at the Kennecoff Corporation calling for cumulative voting for its board of directors and the disclosure of information about its stripping activities in Appalachia