I'm not a big fan of Jesse Jackson myself, but I have to side with Rev. Hymietown on this one.
http://releases.usnewswire.com/GetRelease.asp?id=40146NLPC Files Shareholder Proposal To End PepsiCo's Support of Jesse Jackson
11/29/2004 10:07:00 AM
To: National Desk
Contact: Peter Flaherty of the National Legal and Policy Center, 703-237-1970, Web:
http://www.nlpc.orgWASHINGTON, Nov. 29 /U.S. Newswire/ -- Peter Flaherty, president of the National Legal and Policy Center (NLPC), today announced that NLPC has submitted a shareholder resolution to PepsiCo, Inc. (NYSE: PEP) for consideration at its 2005 annual meeting. The proposal and supporting statement read:
Resolved, shareholders request the Board of Directors to establish a policy precluding future financial support of Jesse Jackson, the Citizenship Education Fund, Rainbow/PUSH Coalition, and/or any other nonprofit organization founded, headed or primarily identified with Jesse Jackson.
NLPC SUPPORTING STATEMENT:
PepsiCo, Inc. (the Company) is a major financial supporter of Jesse Jackson's nonprofit organizations.
Jesse Jackson has made statements that are offensive in the opinion of many Company shareholders, employees, business partners and customers. Jackson accused President Bush of pursuing the "ideology of the Confederacy." (CNSNews.com, Oct. 14, 2004) Jackson stated, "Democracy as we know it did not begin in Philadelphia, where a bunch of white men wrote the laws." (Speech at Michigan State University, quoted in The Washington Times, Sept. 16, 2002.) Of Bush's election Jackson stated, "He would preside but not govern because he took this by Nazi tactics." (Fox News Channel, interviewed by Rita Cosby, Dec. 11, 2000.) Jackson referred to Jews as "hymies" and New York City as "Hymietown." (The Washington Post, Feb. 13, 1984.)
The Company's relationship with Jesse Jackson creates controversy and impacts the Company's corporate image, brands and reputation. The news media has critically examined the relationship and will continue to do so as long as the Company is publicly identified with Jackson.
In order to demonstrate a sincere commitment to diversity, rather than supporting Jesse Jackson, the Company should support individuals and organizations that promote genuine civil rights and economic empowerment. (End of Supporting Statement)
Flaherty said, "Many PepsiCo shareholders will be dismayed to learn that PepsiCo is one of Jesse Jackson's biggest financial supporters. Jesse Jackson's real constituency is not African- Americans, but corporate America. We seek to make accountable the weak-kneed executives who submit to Jesse Jackson."
Flaherty continued, "Although it is not the subject of this shareholder proposal, Al Sharpton and Johnny Cochran serve on PepsiCo advisory committees. By involving these controversial and divisive figures along with Jesse Jackson, PepsiCo seems to promote unfortunate stereotypes of African-Americans and who they view their leaders to be."
According to media reports, then-PepsiCo CEO Roger Enrico directed that a portion of the 1999 Pepsi Bottling Group IPO be co-managed by Utendahl Capital Partners, in response to pressure from Jesse Jackson. John Utendahl is a long-time associate and financial supporter of Jesse Jackson. Enrico's own chief financial officer reportedly opposed the deal, which gave Utendahl a cut of the $19 million management fee.
In 2001, NLPC filed a formal IRS Complaint against the so- called Citizenship Education Fund (CEF), Jesse Jackson's largest nonprofit group. The Complaint alleges that Jackson, his family and friends have become wealthy through the operation of the CEF. The Complaint cites news articles detailing Jackson's "opulent lifestyle."
In 2002, Toyota stopped public support for Jackson's organizations in response to an NLPC request.
In 2003, NLPC organized and led a widely publicized protest of NASCAR's support for Jesse Jackson's organizations. NASCAR acknowledged on its own Web site that it was the most heated protest it had ever faced.
In late 2003, the New York Stock Exchange denied Jackson use of the Exchange floor for a fundraising event, in response to NLPC.
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NLPC promotes ethics in public life, and sponsors the Corporate Integrity Project.
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