Daily News Archive
Firm Publicizes Risks to Dow Shareholders
Dow officials say Innovest’s 100-page document lacks objectivity and was prepared for the sake of issues advocacy. Despite these claims, the companies’ shareholders are responding to the issues in the firm’s report. Three shareholders submitted a resolution that calls for Dow to "institute new initiatives to address the specific health, environmental and social concerns of the (Bhopal) survivors.” They are proposing Dow release a report that assesses the impacts that the matter could pose to the company, its reputation, its finances and expansion in Asia and elsewhere. The resolution is up for a vote at the company’s annual meeting on May 13.
Dow denied responsibility for the Bhopal disaster when it acquired Union Carbide, the Indian plant’s parent company, in 2001, and continues to deny responsibility today. Dow’s board of directors is recommending the proposal be rejected. However, as detailed in Innovest’s report, Bhopal is one of its most potentially expensive liabilities. The report argues that shareholders and potential investors should be made aware of any known trends and or uncertainties that could have an impact on the company’s overall financial performance. The firm said environmental matters could black list the company for investors who value social responsibility.
are not limited to Bhopal. Other liabilities the company faces include
costs to remediate dioxin contamination in the Tittabawassee River,
the Saginaw River and in Midland soils. The Innovest report says Dow
statements omit mention of the potential class action lawsuit by Tittabawassee
River flood plain property owners pending in Saginaw County Circuit