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Norway wealth fund to vote for labour rights motion at Starbucks AGM
Global Banking & Finance Review®
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OSLO (Reuters) – Norway’s $1.3 trillion wealth fund, one of the world’s largest investors, will vote in favour of a shareholder motion calling on Starbucks to report on how it respects labour rights, the fund’s manager said on Thursday.
OSLO (Reuters) – Norway’s $1.3 trillion wealth fund, one of the world’s largest investors, will vote in favour of a shareholder motion calling on Starbucks to report on how it respects labour rights, the fund’s manager said on Thursday.
The Norwegian fund owns 1.05% of Starbucks’ shares, worth $1.2 billion at the end of 2022, according to fund data. It is the company’s tenth-largest shareholder, according to Refinitiv Eikon. Starbucks is due to hold its annual meeting on Thursday.
Over the years, Schultz helped Starbucks build a reputation as a progressive employer, offering higher salaries and more benefits – including company stock and health insurance – than other restaurant chains.
But the company’s response to a growing union campaign, as well some of Schultz’s public comments, have been described by some critics, including some shareholders, as overly aggressive.
Norges Bank Investment Management (NBIM), which operates the Norwegian wealth fund, said it would vote in favour of commissioning a third-party assessment of Starbucks’ commitment to freedom of association and collective bargaining rights.
In a separate opinion piece published on Thursday, NBIM’s Chief Governance and Compliance Officer, Carine Smith Ihenacho, and Caroline Eriksen, a senior fund official, said NBIM had grown concerned over the issue.
“Freedom of association and the right to collective wage bargaining are fundamental employee rights – and human rights,” they said.
Starbucks was not immediately available for comment.
(Reporting by Gwladys Fouche, editing by Terje Solsvik)
Human rights are the basic rights and freedoms that belong to every person in the world, from birth until death, including the right to life, freedom of expression, and the right to work.
Investment management is the professional management of various securities and assets to meet specified investment goals for the benefit of investors, including individuals and institutions.
Social responsibility is the idea that businesses should balance profit-making activities with activities that benefit society, ensuring ethical practices and contributing positively to the community.
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