Activist organization, As You Sow has filed a second proposal concerning the use of plastic packaging to be considered by shareholders of Tyson Foods at the February 8th annual meeting. As You Sow is an influential nonprofit concentrating on environmental issues with a record of solid achievements in the E.U.
The Board of Tyson Foods has recommended rejection of the proposal, citing company efforts to reduce the use of plastic packaging and hence waste. As You Sow claims that Tyson is not sufficiently aggressive in their action and has failed to provide “substantive data and is lagging other companies in the exercise of Extended Producer Responsibility.” Although recognizing efforts made by Tyson Foods to reduce plastic waste, As You Sow is encouraging adoption of additional measures that would contribute to recycling. The Organization claims that the Company should set “quantifiable and time-bound goals for reducing the use of plastic packaging.”
Generally, shareholder resolutions from nonprofits and activists’ groups on ESG issues fail to gain traction. The fact that proposals are made should motivate boards to consider changes in policy and operations. Issues including welfare, worker wellbeing and sustainability are frequently raised. Companies now realize that stonewalling results in negative publicity that invariably impacts the ability to raise funds and ultimately contributes to a decline in image and share price.