The litany of alleged
offenses follows a script: fragile ecosystems, environmental devastation,
irresponsible investment, huge profits, human rights violations, indigenous
people imperiled. So do the demands: transparency, accountability, ethics,
social responsibility.
The tactics are equally familiar. Launch website, issue denunciations. Enlist grade school teachers
whose students can write letters to the CEO. Harass the CEO at home. Stage
protests at corporate offices. Claim to be stakeholders who must be given
a role in all decisions, so that company policies henceforth reflect activist
demands.
Confrontational? Disingenuous? Of course. Effective? Absolutely.
The World
Bank caved in several years ago, followed by Citigroup, Bank of America,
and a few oil and mining companies. Now JP Morgan Chase and other companies
are in the crosshairs of activist groups like Rainforest Action Network.
RAN’s
focus is on rainforests and fossil fuels. But its websites and rhetoric show
that is just the tip of the iceberg. The group’s Global Finance Project director
told Wall Street Journal business analyst Alan Murray, “I personally do not
want them to lend to oil companies.” Mining and timber companies are also
high on her list.
Moreover, RAN is just one element in what Professor Jarol Manheim (author of Biz Wars and Death of a Thousand Cuts)
calls an elaborate network of foundations, advocacy groups, unions and other
institutions. All are determined to advance their anti-corporate, anti-development
agenda, which includes strident opposition to pesticides, biotechnology,
electricity and other modern technologies.
All employ
economic, legal, political, media and psychological warfare, to convince
companies that surrender is preferable to continued resistance. And all launch
their attacks under the banner of sustainable development and corporate social
responsibility -- as defined and interpreted by the activists.
The attacks
sully reputations and impact bottom lines. Less obvious but more insidious
is their effect on investment, innovation, employment, and our economic future
and standard of living. Worst of all, the campaigns trample on the human
rights of the world’s most destitute people, keep them impoverished, and
send many to early graves.
Worldwide,
2 billion people still don’t have electricity, water purification, sewage
treatment or refrigeration. Indoor pollution from their wood and dung fires
causes 4 million deaths a year from lung infections and tuberculosis, while
unsafe water and spoiled food cause intestinal diseases that kill another
6 million.
Over
800 million people are chronically undernourished, and 200 million children
suffer from Vitamin A Deficiency. A half-million children go blind annually,
and 2 million die from diseases they would likely survive with better nutrition.
Malaria,
sleeping sickness and other insect-borne diseases infect half a billion people
every year in sub-Saharan Africa -- killing 4 million and contributing massively
to the region’s economic devastation.
Abundant,
reliable, affordable electricity would generate jobs and prosperity, dramatically
reduce lung and intestinal diseases, and help preserve woodland habitats
and wildlife. Biotechnology would reduce crop losses from insects and plant
disease, help alleviate hunger and malnutrition, and decrease the amount
of land that must be cultivated to feed growing populations. Pesticides would
control mosquitoes and flies that spread killer diseases.
But extremist
groups -- and the foundations, companies and governments that support them
-- viscerally oppose fossil fuel, nuclear and hydroelectric power projects,
biotechnology, pesticides, and bank financing of projects that would generate
jobs and hope for the future.
To deflect
criticism over their callous policies, they promote solar panels that power
a light bulb and radio in mud huts; wind turbines that spoil scenic vistas
and kill birds; subsistence farming that is land and labor intensive, and
subject to massive crop loss; and bed nets that are at best 40% effective
in reducing malaria.
“What
right does RAN have to dictate choices for poor people, who never enjoy the
safe water, plentiful food, nice homes and modern technologies these protesters
take for granted?” Uganda-native Diana Koymuhendo demands.
The Congress
of Racial Equality went head-to-head with RAN demonstrators April 12 in front
of JP Morgan’s Manhattan headquarters, to spotlight the truth behind these
campaigns. Up to now, the bank has had the courage and ethics to resist their
pressure tactics, and recognize that the real stakeholders are poor people
whose needs, wishes and rights are violated by the radical groups. We hope,
and the Third World prays, that the bank will not lose its resolve.
Rainforest
Action wants JP Morgan to change its business practices and standards, and
give the activists a principle advisory role -- even effective veto power
over lending decisions. This is the shameful arrangement the World Bank agreed
to and, as Washington Post journalist Sebastian Mallaby has shown, the decision has seriously compromised its functions.
With
Citigroup and Bank of America having done likewise, the cumulative effect
of these capitulations could be disastrous for poor developing countries.
They need serious investment, not a few eco-tourism or eco-activist jobs.
Their principle resources are oil, timber, minerals and hardworking people
-- and RAN and its colleagues are strangling their financial options, and
prolonging the Third World’s misery, malnutrition, disease and death.
JP Morgan’s
standards already meet or exceed modern social norms. That they don’t reflect
RAN’s eco-centric agenda is irrelevant. Indeed, it is the protesters’ --
and their financial backers’ -- morals, practices, and standards of honesty,
transparency and accountability that merit scrutiny and reform.
RAN hectoring
corporate America about ethics and human rights is like Jeffrey Dahmer lecturing
ministers about the sanctity of human life. Putting RAN on a company’s CSR
advisory panel is akin to having Cuba, Sudan and Zimbabwe on the UN Human
Rights Commission -- and granting it favored tax treatment as a 501(c)(3)
educational charity is equally absurd.
Why, then, have these pressure campaigns been so successful?
First,
even the corporate targets don’t grasp the true nature and scope of this
global war on business and development. Neither they, the general public
nor rank-and-file environmentalists realize how harmful these eco-imperialist
policies are to the world’s poorest people.
Second,
incessant attacks over many years -- coupled with the minimal respect that
people now have for corporations and their leaders in the wake of recent
scandals -- have left too many CEOs without the courage, credibility or Churchillian
spirit to fight on. Instead, they seek a Neville Chamberlain solution: peace
for their time, feeding the crocodile and hoping it will eat them last.
Third,
the public, regulators and environmentalists alike often employ a monstrous
double standard. Where American or European lives are at risk -- even from
speculative or specious threats like arsenic in drinking water, pesticide
residues on grapes or a droplet of mercury from a broken thermometer -- no
law is too tough, no cost too high, to safeguard the populace. But when Third
World lives are threatened by real, immediate, life-or-death dangers that
kill literally millions year after year, inaction prevails.
Fourth,
few of today’s urbanites understand how our economy works, or where their
consumer products, health and prosperity really come from: land and holes
in the ground, through an often messy business that extracts and transforms
basic resources into valuable, life-giving technologies. That ignorance makes
them easy prey for eco-charlatans who need recruits to harass and intimidate
companies.
Last,
few are willing to challenge the radicals to put their money, their lives
-- and their children’s lives -- where their mouths are. To go native --
all the way. To live in Africa or the Amazon rainforest, among millions of
mosquitoes and tsetse flies, without benefit of electricity, refrigeration,
clean water, pesticides, insect repellents, screens, medical care or automobiles.
It’s
easy to idealize and idolize Nature and indigenous lifestyles. Until one
has to live that life. Only then does one realize, in the words of Kenyan
Akinye Arunga, that it means “indigenous poverty, indigenous malnutrition,
indigenous disease and childhood death.”
So CORE
salutes JP Morgan Chase and CEO William Harrison for having had the courage
and morality to stand up to radical activists and their lies and pressure
tactics. We only hope you won’t go wobbly on us.
Niger Innis is national spokesman for CORE. Paul
Driessen is senior policy advisor for the Congress of Racial Equality, Committee
For A Constructive Tomorrow and Center for the Defense of Free Enterprise,
and author of Eco-Imperialism: Green Power, Black Death.
Email Paul Driessen
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