Azzad’s updated proxy voting guidelines

Azzad engages in shareholder advocacy on behalf of our clients including proxy voting and filing resolutions and sending investor letters. Corporations have a role to play in some of the most significant challenges in the United States – from income inequality to climate change. In pursuing a fiduciary responsibility to shareholders, they can become detached from their duties as corporate citizens. We believe that is our duty to encourage these corporations to act more responsibly in those instances where they fall short. The proxy voting process is part of this effort. We view the right to vote proxies for our clients as a responsibility to help ensure that the conditions that allowed companies to thrive in the first place continue to do so–for the benefit of shareholders and stakeholders for generations to come. Last month, our board of directors voted to update our proxy voting guidelines. We’re proud to announce this enhancement to our clients and shareholders. Azzad’s commitment to socially responsible investing remains as strong as ever. We vote proxies related to securities held by any client in a manner solely in the interest of the client and consistent with our investment philosophy. Our proxy voting guidelines focus on

September 5, 2019 No Comments

Azzad commends Chevron’s work on Myanmar

Activist investors withdraw human rights shareholder resolution following ‘constructive dialogue’ Falls Church, Virginia, April 11, 2019 — A coalition of socially responsible investors led by Azzad Asset Management announced today that it has withdrawn a shareholder resolution filed with Chevron Corporation. The proposal pushed the energy giant to evaluate its business with governments engaged in conflict areas. This announcement follows a years-long dialogue between concerned stakeholders and the oil and gas company, which has operations globally, including in regions experiencing internal strife. The resolution, which was filed by Azzad for a third time last year, asks Chevron to evaluate a policy of cutting ties with governments engaged in genocide or crimes against humanity. It cites specifically the nation of Myanmar (Burma), whose military stands accused of committing atrocities against the Rohingya ethnic minority. Preferring instead a policy of engagement with local government and civil society, Chevron responded to shareholders with a set of initiatives and specific actions the company has undertaken or planned to undertake aimed at addressing the humanitarian crisis. Among other things, these include engaging with political leaders on U.S.-Myanmar policy, training representatives of private security companies on what Chevron expects of them by way of a commitment to respecting

April 11, 2019 No Comments

People debating Nike’s Kaepernick ads are missing an opportunity: Using shareholder activism to make their voices heard.

Sportswear company Nike has received both praise and condemnation for its decision to make former NFL quarterback and racial justice advocate Colin Kaepernick the face of its 30th anniversary “Just Do It” campaign. Many astute commentators have already noted that Nike, as a giant, publicly traded corporation, is laser-focused on making profits and maximizing value for its shareholders. From making political donations to Republicans and Democrats in roughly equal amounts to simultaneously sponsoring both Kaepernick and the league that has allegedly colluded to keep him off the field, Nike has shown that it is an equal opportunity offender–spreading its bets around for the higher purpose of making money for company owners. One of the narratives being pushed in the now-politicized world of business is that companies must take a side on contentious issues. Doing so cements their reputations as either “good” or “bad” to many consumers, depending on their perspectives; they may then support or boycott products accordingly. So, is Nike good or bad? Conservatives can find much to dislike about the company’s recent decision to give Kaepernick a more high-profile role in its ad campaign. Liberals can find fault with Nike’s failure to live up to internationally recognized labor

September 11, 2018 No Comments

Azzad asks Alphabet to adopt Holy Land Principles

Falls Church, Va., 1/5/16 – Azzad Asset Management and a nonprofit organization focused on workers’ rights have filed shareholder resolutions with Alphabet (formerly Google), calling on the company to implement fair hiring practices with respect to the Arab Palestinian population working at its offices in Israel. Azzad co-filed in support of the lead filer, The Holy Land Principles, Inc., which was founded by Father Sean McManus, an activist who opposed British discrimination against Catholics in Northern Ireland in the 1980s. The Holy Land Principles are inspired by The MacBride Principles, which Fr. McManus used to advocate for fair employment in Northern Ireland. They eventually became the congressional standard for economic dealings with Northern Ireland and were adopted by dozens of U.S. cities, companies, and institutions. The shareholder proposal submitted to Alphabet is intended to guard against the unequal treatment of workers in Israel-Palestine. Alphabet is one of 546 U.S. companies operating in Israel. Filing the shareholder resolution is not intended as an indictment of the firm’s current employment practices. It reads in part: ” that Alphabet benefits by hiring from the widest available talent pool. An employee’s ability to do the job should be the primary consideration in hiring and promotion

January 5, 2017 No Comments

Buy stock. Save the world.

We’ve been talking a lot about shareholder advocacy at Azzad recently–and about how it’s a largely untapped way for concerned citizens to take action on issues we care about. For those who aren’t familiar with it, shareholder advocacy refers to actions taken by stock investors (shareholders) to ask the companies whose stock they own to improve or change behavior for the public good. Think of asking an energy company to use more renewables or a technology company to end purchases of conflict minerals. If you invest in stocks, you can participate in shareholder advocacy. We recently used shareholder advocacy to take action on an issue many people feel isn’t getting the attention it should – the human rights abuses faced by the Rohingya minority in Burma at the hands of its government. In November 2016, the United Nations said that abuses perpetrated against the Rohingya by the Burmese military may amount to crimes against humanity. The U.S. Holocaust Memorial Museum has reported that the Rohingya are “at grave risk of additional mass atrocities and even genocide.” During the fall filing season, Azzad partnered with a Catholic religious organization, the Ursuline Sisters of Tildonk, to file the first shareholder resolution submitted

December 30, 2016 No Comments

First shareholder resolution on Rohingya presses Chevron on business ties to Burma government

Resolution asks oil giant to halt business with regimes engaged in genocide or crimes against humanity Falls Church, Va., 12/12/16 – A socially responsible investment firm and a Roman Catholic international religious congregation announced today that they have filed the first shareholder resolution focused on the persecuted Burmese Rohingya minority, calling on California-based Chevron Corporation to evaluate a policy of not doing business with governments that are believed to be engaged in genocide or crimes against humanity. Filed by Azzad Asset Management and the Ursuline Sisters of Tildonk, U.S. Province, the proposed resolution urges the oil giant to halt its relationship with the government of Burma (Myanmar) until that country ends the state-sanctioned violence against its Rohingya minority. It is the first time a shareholder resolution focused on the Rohingya has been submitted to a U.S. corporation. The proposal was prepared in consultation with the International Campaign for the Rohingya and is expected to be voted on by stockholders at the Chevron annual meeting in May 2017. It describes the recent violence by Burma’s army against the ethnic Rohingya people in Rakhine state in western Burma. Through its subsidiary Unocal Myanmar Offshore Co., Ltd., Chevron entered into a production sharing

December 12, 2016 No Comments

Azzad Signs Statements in Support of Environmental Safeguards

Investor statements appeal to private and public sectors to combat climate change Azzad recently joined two initiatives targeting climate change. The first is a business and investor statement to President-elect Donald Trump in support of U.S. participation in the Paris Climate Agreement. Organized by Ceres, a coalition of sustainability-focused groups, the statement is intended to show broad support from large and small businesses and investors for continuing with the Paris accord, which has been signed by 193 countries so far, including the United States. The statement says in part: “We want the US economy to be energy efficient and powered by low-carbon energy. Cost-effective and innovative solutions can help us achieve these objectives. Failure to build a low-carbon economy puts American prosperity at risk. But the right action now will create jobs and boost US competitiveness.” Starbucks, Gap, Nike, L’Oreal, and hundreds of other American businesses signed the statement to tell the incoming administration that they are committed to fighting global warming. See: Business backs low-carbon USA The second initiative is an investor letter calling on more than 100 public companies to demonstrate their plans for the adoption of science-based targets for greenhouse gas emissions. Those companies, which include such

November 23, 2016 No Comments

Make investing great again

Why a Muslim investment company thinks shareholder activism is what this country needs right now As President-elect Trump goes about the task of putting his administration and cabinet in order, one thing looks certain: corporate lobbyists are setting their sights on the political novice and his team. I read with great concern a recent article on the coterie of influence peddlers lining up to sway the new administration (“With Trump’s Election, a Bonanza for Washington Lobbyists,” The New York Times, November 10, 2016). Doubtless the pernicious influence of lobbyists was present during the Obama years, but for the anti-establishment candidate who staked his political reputation on “draining the swamp,” the hypocrisy is particularly striking. It is not surprising that corporate interests exercise power whenever and wherever possible in order to maximize profits, and by extension, value for shareholders. That value can take many forms, however, and there are often competing definitions of the word itself. Corporations make many of the most consequential decisions in today’s society, and in a Trump administration the private sector may well take on an outsized role. Those who feel disempowered after last week’s election result may want to turn to shareholder advocacy as a way

November 14, 2016 No Comments

Azzad signs statement calling for reforms in Bangladesh manufacturing sector

Investor statement comes after September factory fire kills 35 workers FALLS CHURCH, VA – (October 27, 2016) – Azzad Asset Management, investment advisor to the Azzad Funds, announced today that it has joined a coalition of investors calling on multinational corporations to enact greater protections for factory workers in Bangladesh. This follows a September 10 boiler explosion at the Tampaco Foils Ltd. factory in Bangladesh, which resulted in a fire and building collapse that killed 35 people and injured more than 50 others. The call comes in the form of an investor statement organized by the Interfaith Center on Corporate Responsibility (ICCR), a coalition of faith and values-driven organizations that engage multinational corporations to promote sustainable and fair business practices. ICCR sent the statement, representing 66 organizations with $2.3 trillion in assets, to two major Tampaco Foils customers, British American Tobacco and Nestle. The statement says in part: Urgent steps need to be taken … to avoid further loss of life, not only in factories in Bangladesh, but throughout the full reach of global supply chains. We specifically call for: Comprehensive fire and safety inspections that include thorough inspections of boilers. Worker training on fire and safety procedures and worker/management safety

October 27, 2016 No Comments

Azzad joins call for food industry to end use of antibiotics on livestock

FALLS CHURCH, VA, September 19, 2016 — Azzad Asset Management, investment advisor to the Azzad Funds, announced today that it has joined a consortium of responsible investors and shareholder advocacy groups in support of a United Nations’ call to end antibiotic use in global food supply chains. Organized by the Interfaith Center on Corporate Responsibility (ICCR), Farm Animal Investment Risk & Return (FAIRR), ShareAction, and As You Sow, the global investor statement on antibiotic use in livestock is intended to raise awareness of investors’ work on this issue. The statement comes as the UN High Level Meeting on Antimicrobial Resistance (AMR) convenes this week in New York. The letter states in part: As shareholders we urge animal health and food companies, including meat producers, restaurants and retailers, to end the use of antibiotics important to human medicine in their operations and global supply chains. Given the overuse of antibiotics’ contribution to AMR, we view this meeting as a potential watershed moment for concerned stakeholders and for the industry. As part of achieving the objective of the High-Level Meeting, we believe it is important to highlight the impact of livestock production on rising antibiotic resistance. And in particular, shine a light

September 19, 2016 No Comments

Global warming’s best friend: the megabank

Most of us are aware of the existential threat that climate change poses to our species. The immediate impacts of a warmer planet range from melting polar ice caps to drought, famine, and extreme weather events globally. Google the phrase “Kiribati climate change” to read more about the people whose country is expected to be the first to disappear due to rising sea levels. If greenhouse gas emissions continue at their current pace, experts warn that widespread catastrophe looms by the beginning of the next century. The most notorious culprit in this drama is carbon dioxide (CO2). Most CO2 emissions come from the burning of fossil fuels. Thus, fossil fuel companies have been the target of a sustained divestment campaign by the socially responsible investment industry. While divestment is impactful, there is a critical but often overlooked driver of investment in the fossil fuel industry that has only now begun to get the collective attention of the environmentally conscious: big banks. Banks play an essential role in allocating financial resources for the private sector. They do this through their lending and investment operations. For example, coal-fired power plants, the nation’s top source of CO2 emissions, are costly to build, typically

May 6, 2016 No Comments

Azzad renews appeal to apparel makers to protect worker rights

FALLS CHURCH, VA, April 25, 2016 — Azzad Asset Management, a faith-based socially responsible investment firm and investment advisor to the Azzad Funds, reiterated today its call for ongoing reforms in the Bangladesh garment sector, three years after an eight-story factory collapsed in the capital of Dhaka killing more than 1,100 workers and injuring 2,500. The firm said in a statement: “In the wake of the largest garment factory accident in history, we have made only marginal progress toward a culture of safety and respect for worker rights in Bangladesh. The reforms that have been achieved, though admirable, have been slow to come about and much more needs to be done. “Underlying issues such as insufficient resources to improve workplaces, factory-controlled worker safety committees, and a lack of support from American apparel retailers for the Accord for Fire and Building Safety do a disservice to the memories of the victims and their families. We call on all parties involved to redouble their efforts to bring about a lasting solution to the problem.” Azzad noted that, although more than 200 companies from 20 countries signed the Accord for Fire and Building Safety, most North American retailers did not join, with companies

April 25, 2016 No Comments

Azzad joins call to investigate ExxonMobil over climate change

FALLS CHURCH, VA, April 6, 2016 — Azzad Asset Management, investment advisor to the Azzad Funds, announced today that it has added its voice to a growing campaign to investigate whether Exxon Mobil Corp. intentionally misled the public and its shareholders about the risks of climate change. In April, a group of socially responsible investment managers, including Azzad, sent a letter to the United States Department of Justice calling for an investigation. It read in part: “Recent reports have shown that Exxon knew about the threat of climate change decades ago. Yet over the course of nearly forty years, the company has contributed millions of dollars to think tanks and politicians that have done their best to spread doubt and misinformation — first on the existence of climate change, then the extent of the problem, and now its cause. If Exxon intentionally misled the public about climate change and fossil fuels, then they should be held accountable. We are calling for an immediate investigation.” The letter from investment industry leaders follows recent action by state law enforcement officials to put pressure on the energy company. Last month, a coalition of attorneys general announced their support for New York Attorney General

April 6, 2016 No Comments

Azzad calls for DOL to reinforce shareholder rights for pension plans

FALLS CHURCH, Va., March 22, 2016 — Azzad Asset Management, investment advisor to the Azzad Funds, announced today that it has joined a coalition of socially responsible financial firms in calling for the U.S. Department of Labor (DOL) to rescind a bulletin that undermines the exercise of shareholder rights by fiduciaries. Organized by the Forum for Sustainable and Responsible Investment (US SIF), of which Azzad is a member, the campaign is intended to persuade the DOL to explicitly permit retirement plan sponsors to address sustainability concerns by engaging directly with publicly traded companies in which they invest. The group argues that issues such as climate change, human rights abuses, and excessive executive compensation should be addressed by retirement plan fiduciaries in the interest of capturing the long-term socioeconomic benefits that can accrue to plan participants. In a letter to Labor Secretary Tom Perez, US SIF CEO Lisa Woll states that, “202 institutional investors or money managers representing $1.72 trillion in U.S.-domiciled assets filed or co-filed shareholder resolutions on issues at publicly traded companies from 2012 through 2014.” She goes on to argue that, although many asset managers are engaged in active ownership, pension plans are absent because the bulletin in question

March 22, 2016 No Comments

Get out the (proxy) vote!

With the 2016 elections still months away, the wall-to-wall media coverage may leave you itching to cast your vote early. Consider putting that energy to good use by making your voice heard on corporate issues. Today, corporations make most decisions of consequence in our society. As the owner or shareholder of a stock or shares of a mutual fund, you are part owner of a corporation. That means you have both rights and responsibilities. You have the right to sit with management, be an insider, and work for change through constructive activism. Part of that activism means understanding how your mutual fund company votes on matters pertaining to the individual companies they invest in. During corporate America’s “proxy season,” which is between April 15 and June 30 each year, most of America’s largest publicly traded corporations hold their annual meetings to vote on company business as well as various proposals introduced by shareholders, which appear on proxy ballots. Resolutions are voted on during a company’s annual meeting and often deal with issues of importance to values-conscious investors–like human rights issues. And it’s not necessary to be present to vote. Mutual fund companies vote proxy ballots in absentia on behalf of their investors.

March 14, 2016 No Comments

Q&A: Shareholder activism and proxy voting

Today, corporations make most decisions of consequence in our society. As the owner or shareholder of a stock or shares of a mutual fund, you are part owner of a corporation. That means you have both rights and responsibilities. You have the right to sit with management, be an insider and work for change through constructive activism—in short, to enjoin the good and forbid wrongdoing. We sat down with CCO Manal Fouz to learn more about how Azzad Asset Management pushes for positive change at the corporate level. Can you give us a brief explanation of shareholder activism and how it works at Azzad? Shareholder advocacy is essential for any socially responsible investment firm. At Azzad, it is enshrined in how we do business. It is the fifth tenet of our Seven Tenets of Halal Investing. And it helps us further our company’s goal of making investing ethical. An important part of shareholder activism is voting on shareholder resolutions through proxy ballots. Resolutions are voted on during a company’s annual meeting and often deal with issues of importance to values-conscious investors such as labor or human rights. Shareholders do not need to be present to vote. Unmarked proxy ballots are

April 9, 2015 No Comments

Interfaith Center on Corporate Responsibility welcomes 1st Islamic financial firm to its shareholder coalition

(New York, NY, 4/9/15) – Representatives from the Interfaith Center on Corporate Responsibility (ICCR) and Azzad Asset Management announced today that Azzad will join ICCR as its newest member—the first Islamic firm to be affiliated with the group. As the premier member organization focused on corporate social responsibility and environmental advocacy, ICCR leverages the influence of its shareowner members to enact change. Azzad’s addition to the growing list of members is a testament to ICCR’s universal appeal for collective action on issues of importance to people of all faiths. The two organizations expressed optimism about the opportunities this collaboration affords. In a statement, ICCR Executive Director Laura Berry said: We are delighted to announce that Azzad Asset Management has joined the Interfaith Center on Corporate Responsibility (ICCR). For more than forty years, ICCR has been a faithful voice for justice, engaging in shareowner advocacy with the goal of encouraging greater corporate responsibility on a host of social and environmental concerns. ICCR members include religious organizations, universities, unions, banks, foundations, asset management companies and other institutional investors who believe companies with more just and sustainable operations are more profitable over the long term. We are pleased to count Azzad Asset Management

April 9, 2015 No Comments