RESOLUTION

WHEREAS, Socially Responsible Investment (SRI) is the rapidly growing practice in the United States of basing investment decisions on considerations of societal values and concerns as well as financial returns, thus balancing the investor's financial aims and needs with an investment's impact on society by the operations of the corporation or entity in which the investment is made; and

WHEREAS, distinct but related aspects involved in an SRI strategy are:

WHEREAS, SRI has its roots in the colonial era when abolitionist Quakers refused to invest in any business associated with slavery, and blossomed in the 1970s, influenced by strong social movements focusing on the environment, fair employment practices, the military-industrial complex, and the rights of minorities and women; and

WHEREAS, in the 1980s, anti-apartheid activists brought the idea of SRI into full public view by insisting that their schools and churches stop investing in companies which did business in or with South Africa; and

WHEREAS, this very successful campaign to remove capital from South Africa marked a powerful new era for SRI, and helped lead to changes in South African policy, bringing down the walls of apartheid; and

WHEREAS, on September 11, 2001, the United States witnessed the most horrific acts of terrorism ever brought against our nation, killing thousands of innocent people, and severely impacting the economy of the entire country; and

WHEREAS, in response to these violent acts of terrorism, federal, state, county, and local governments became responsible for completing the monumental task of developing and implementing America's response to violent acts of terrorism and preparing an extensive network of security and intelligence to meet both national and international needs, as well as the needs of all of the citizens of our nation; and

WHEREAS, American citizens have learned to adapt to an ever-changing world; a world that will never be the same again; and

WHEREAS, many countries around the globe participate in acts of terrorism, either directly through direct funding or harboring of terrorists within their borders, or indirectly through their support of groups that are known to practice and promote terrorist acts against innocent people; and

WHEREAS, American companies, especially those with international business interests, may inadvertently be supporting such terroristic activities through their business dealings with countries sponsoring terrorism; and

WHEREAS, the Employees' Retirement System, may inadvertently have investments in companies that have business relations with countries that support terrorism; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-second Legislature of the State of Hawaii, Regular Session of 2003, the Senate concurring, that the Employees' Retirement System is requested to review its investment practices, determine whether any investments are being made with companies based in countries that support terrorism, and rethink its investment policies regarding these companies; and

BE IT FURTHER RESOLVED that the Administrator of the Employees' Retirement System report to the Legislature on its investment policies no later than 20 days before the convening of the Regular Session of 2004; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Governor and Administrator of the Employees' Retirement System.

Report Title:

Requesting the Employees' Retirement System to review its investment practices, determine whether any investments are being made with companies based in countries that support terrorism, and rethink its investment policies regarding these companies.