PLANO, Texas, MAY 7 /PRNewswire/ -- Concerned PepsiCo (NYSE: PEP)
shareholders garnered 7.5 percent support for a resolution voted on today at
PepsiCo's annual meeting in Plano, Texas, that called on the soft drink giant
to report on how it plans to deal with the business and employee impact of the
AIDS pandemic in Africa. A first-year support level of 3 percent is required
by the U.S. Securities and Exchange Commission (SEC) for this proxy resolution
to be reintroduced at PepsiCo in 2004.
Mark Regier, stewardship investing services manager for MMA, said, "This
is an extremely encouraging outcome and one that exceeds our expectations,
which were modest. During a resolution's first year, you work hard just to
make sure people know the issue exists. But this resolution seemed to strike
a chord immediately with many shareholders. People understand that this is
both a business and a humanitarian issue for PepsiCo. More shareholders now
want to know how this pandemic will affect PepsiCo's business throughout
The resolution was filed by MMA along with the Congregation of the Sisters
of Charity of the Incarnate Word, School Sisters of Notre Dame Cooperative
Investment Fund, Sisters of Mercy of the Americas, Sisters of St. Dominic of
Caldwell New Jersey, and ASC Investment Group. On March 4, 2003, the SEC
rejected a PepsiCo effort to kill the proxy measure.
The proxy resolution stated: "Shareholders request the Board of Directors
to report on: the effect of the health pandemic on the company's operations in
Sub-Saharan Africa; the Company's response to the pandemic; and, that the
report would be made available to shareholders by October 2003 (omitting
proprietary information and at reasonable cost)."
Regier noted, "Other companies operating in Africa, including PepsiCo's
direct competitors, have recognized the importance of this issue and are
responding to shareholders' concerns about how they are dealing with it. At
MMA, we are responsible as shareowners to call on PepsiCo to take the same
ABOUT MMA and MMA PRAXIS MUTUAL FUNDS
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stewardship investing, a philosophy that balances a need for productive use of
financial resources with a deep-seated concern for others. For more
information on MMA Praxis, visit http://www.mmapraxis.com.
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practice biblical stewardship through its expertise in insurance, financial
services, charitable-giving programs, and educational resources. For more
information, visit http://www.mma-online.org.