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US sustainable asset manager Boston Common has divested from Cisco Systems over concerns about its management of human rights risks, alleging also that the firm ‘deceived’ investors on proxy voting.
Boston Common had been leading an investor coalition, collectively accounting for 20 million shares, which has been engaging with the company on its human rights record, but said that, ultimately, ‘when pressed for details on how Cisco addresses these risks, they come up short’.
The asset manager had even written to an independent board member of Cisco before the divestment, pleading for ‘meaningful dialogue’ with the company and its shareholders on human rights. It says that, despite the huge political sensitivity of the computer networking industry, the firm has done nothing to engage investors on improving its own transparency and management systems.
The investor, which did hold $3.6million-worth of holdings in Cisco, also alleges that Cisco misled investors over the number of votes cast in favour of certain shareholder-sponsored proposals on the proxy ballot, accusing the company of using different methods to calculate the results.
Cisco has responded by dismissing Boston Common’s accusations out of hand, adding that its products have been crucial to ‘providing access, expression and community across the globe’.
Boston Common had been leading an investor coalition, collectively accounting for 20 million shares, which has been engaging with the company on its human rights record, but said that, ultimately, ‘when pressed for details on how Cisco addresses these risks, they come up short’.
The asset manager had even written to an independent board member of Cisco before the divestment, pleading for ‘meaningful dialogue’ with the company and its shareholders on human rights. It says that, despite the huge political sensitivity of the computer networking industry, the firm has done nothing to engage investors on improving its own transparency and management systems.
The investor, which did hold $3.6million-worth of holdings in Cisco, also alleges that Cisco misled investors over the number of votes cast in favour of certain shareholder-sponsored proposals on the proxy ballot, accusing the company of using different methods to calculate the results.
Cisco has responded by dismissing Boston Common’s accusations out of hand, adding that its products have been crucial to ‘providing access, expression and community across the globe’.
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