SOCIALLY RESPONSIBLE INVESTING APACHE CORPORATION (APA) CLIFFS NATURAL RESOURCES (CLF) FIRST CASH...

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SOCIALL

Y RESPO

NSIBLE

INVESTI

NG

APAC

HE C

OR

PORAT I O

N (

APA

)

CL I F

F S NAT U

RAL R

E S OU

RCE S (

CL F )

F I RS T C

AS H

FI N

AN

CI A

L SE RV

I CE S

( FC

F S )

RUBRIC (CONDENSED)

Community Charity

Diversity Equal OpportunityBoard of Directors- 1/3 of the directors are a minority or women

Employee Relations Employee Involvement- Communication/Benefits/Safety

RUBRIC CONTINUED…

Environment Pollution Control/Recycling/Proper Management

Product Quality/Fairness/Non-Monopolistic/Law-Abiding

OtherLaw-Abiding (Taxes)/Management Fair Wage

RUBRIC CONTINUED…

Exclusionary Screens Tobacco Alcohol Nuclear Energy Gambling Military Abortion Contraceptives Sweat shop Obesity

Percentage of involvement if possible to determine will be taken in to account

GRADING SCALE FROM RUBRIC

We used a grading scale from 1-51 being very poor3 being neutral5 being excellent

Apache Corporation- 4Background One of US biggest oil companies Involved with 6 different countries Included on Ave Maria Mutual Fund

CHARITYApache Corporation Environmental Matching employee donations Employee volunteering Corporate Grants 3/5 for Charity

Diversity- 1 Board of Directors only one women and

one cultural difference

Chansoo Joung

Patricia Albjerg Graham

Diversity- 1 Top management only 4 women out 33

positions from CEO to staff officers. In careers section of their website they

claim that their workforce is diverse.

Employee Relations- 5 “Safety is not a negotiable and will not

be compromised.” –Apache They offer a wide variety benefits from

health care and insurance to time off and retirement plans.

Have chance to earn compensation for hard work and performance.

Environment- 4 Being an oil company and having to drill

would seem negative They make strong efforts to reduce

impact of greenhouse gases Search for alternative resources and

replacement of harmful equipment

Product- 3 There products include and resource

that can be produced from oil As you probably know they are an oil

drilling company

Exclusionary Screens- 5 Apache doesn’t have operations in any

of the motioned categories If they do its small and unrecognizable There still are a oil company that drills

OV E RA L L C O M PA N Y RA N K I N G : 4

FIRST CASH FINANCIAL SERVICES, INC.

COMPANY INFO

• Founded in 1988 • Principal office in Arlington, TX• Operations in U.S. and Mexico

• Financial Services Company:• Short-term loans through pawning• Check cashing• Credit Services

• Found in:• Russell 2000 Index• S&P Small Cap 600 Index• LKCM Aquinas Small Cap Fund

CHARITYFIRST CASH FINANCIAL SERVICES

• Community Development

• Support the poor

• Equal opportunity

• 2/5 for Charity

DIVERSITY

• Board of Directors• ~1/4 Diverse

• Equal Opportunity Employer• Overall Ranking: 4

EMPLOYEE RELATIONS

• Strengths:• Employees involved in workplace• Employee discounts and benefit packages

• Concerns:• Possible unsafe working environment• No defined pension plan except for 401(K)

• Overall Ranking: 2

ENVIRONMENT

• Not directly involved with pollution• Possible problems with recycling • Especially outside of U.S.

• Overall Ranking: 3 (Neutral)

PRODUCT

• Product is priority• Help economically disadvantaged• Not a monopoly• Overall Ranking: 5

OTHER

• Executive Compensation has lots of elements• 2009 Compensation for CEO was 1.7 million total

• Overall Ranking: 5

EXCLUSIONARY SCREENS

• Haven’t found any direct involvement in any:• Tobacco• Alcohol• Nuclear Energy• Gambling• Military• Abortion• Contraceptives• Sweat Shops• Obesity

• Overall Ranking: 5

CLIFF NATURAL RESOURCES

CLF

Background

164 years company -1847 Cleveland, Ohio Specializes in the mining of iron ore and

the mining of coal Does business in US, Canada, Australia,

and Brazil On the NYSE- S&P 500 (standard and

poor) 4,000 employees

CHARITYCliffs Natural Resources

Education Gift matching Helping the less fortunate Helping cultural institutions 4/5 for Charity

Diversity

CFO is a woman 3/12 board members are women 11/12 are independent members not

related with co. (CEO) Others are CEO of other co, prof at Yale,

or retired

Employee Relations

Co does a pay mix program where there are 3 ways to pay the top employees

Base salary, annual incentives, and long-term incentives

Good 401K plan for all employees 100% match hours CEO=5.5M other 4 important members

are around 2M

Environment

Going beyond compliance Anticipating and addressing potential

impacts before they occur Personal accountability Operating to preserve the

environment for future generations.

Product

Even though they are a mining company that contributes to greenhouse gases they go beyond compliance

CLF’s produces fair products in a non-monopolistic market place

proxy

Vote on CEO pay By doubling amount of stock available Frequency of CEO pay Voting on BoD Vote on accounting firm

Cliffs Natural Resources. Annual Report, 2010 Web. 11/20/2011

Cliffs Natural Resources. Sustainability report, 2010 Web. 11/20/11

 Wood, Kerry. “Observation Trail and Recreation site” "Journal

of Park & Recreation Administration. Article. 2006. 11/20/11"Cliffs Outlines Base Case For Ontario Chromite Project."

Engineering & Mining Journal (00958948) 212.2 (2011): 4-5. Academic Search Complete. Web. 20 Nov. 2011.

 “Vision.” Apachecorp.com. Apache, 2011. Web. 15 Nov. 2011.

http://www.apachecorp.com/Resources/Upload/Sustainability/vision/index.html

Bibliography

“Oil Stock Investors Hit a Gusher, Can it Last?” ChicagoTribune.com. Chicago Tribune Business, 2006. Web. 17 Nov. 2011. <http://www.chicagotribune.com/business/sns-yourmoney-0416watch,0,6324988.story>

Orr, Douglas. "First Cash Financial Services, Inc. - Form DEF 14A." Edgar Online. Edgar Online, 30 Apr 2010. Web. 30 Nov 2011. <http://idc.api.edgar-online.com/efx_dll/edgarpro.dll?FetchFilingConvPDF1?SessionID=OEzCHxlAeZc_YIS&ID=7215938>.

First Cash Financial Services, Inc.. First Cash Financial Services, Inc. , 2007. Web. 16 Nov 2011. <www.firstcash.com>.

Continued…

Orr, R. Douglas. "2010 Form 10-K." First Cash. N.p., 25 Feb 2011. Web. 19 Nov 2011. <https://materials.proxyvote.com/Approved/31942D/20110425/10K_87570/HTML2/default.htm>.

Gastaldo, Evann. "In 2010, Average CEO pay was...." Newser - Read Less Know More. Newser, LLC. , 10 Apr 2011. Web. 01 Dec 2011. <http://www.newser.com/story/116050/executive-pay-in-2010-average-ceo-compensation-was-96m.html>.

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