Super funds get social conscience

SUPER funds are set to make sure companies they invest in take notice of social, environmental and corporate governance issues.

Super funds get social conscience

ARE you concerned about issues such as climate change, alcohol in Aboriginal communities or extreme rates of pay for senior executives and company directors?

Most people are concerned about social and environmental problems in our society but direct action such as street marches and protests are simply not everyone's cup of tea.

Now your super fund is set to get a lot more active on your behalf in ensuring that companies take notice of community concerns around social, environmental and corporate governance issues.

Industry funds have increased their investment in a research and advocacy organisation called the Australian Council of Superannuation Investors (ACSI).

This council's role is to monitor and question companies about issues such as rates of pay for executives, their contribution to climate change and how companies treat their employees, customers and creditors.

"ACSI looks at the governance of companies," says Ann Byrne who has just been appointed as its first full time chief executive.

"We have resourced ourselves up to be more effective now," she said.

"We ask companies to look at the full range of issues that affect their long-term investment."

In terms of governance issues, Ms Byrne wants to ensure that companies have independent directors, that remuneration for executives and directors is reasonable and that companies are always looking at their long-term strategies.

Ms Byrne names climate change as a major concern of ACSI.

However, she is unwilling to specify which social issues that may be on ACSI's agenda but says indigenous issues such as alcohol in communities could feature.

"If a company is having a negative impact on its customers then I would suggest it have a good look at that," Ms Byrne said.