Posted: January 29, 2003

Caterpillar Amends EEO Policy to Protect Gay and Lesbian Employees

Peoria, Illinois- Caterpillar amended its non-discrimination policy to include sexual orientation at the urging of socially responsible portfolio management company, NorthStar Asset Management, Inc. and the Equality Project, a shareholder activist group covering sexual orientation issues in the workplace. Julie Goodridge heads the Boston-based portfolio management company which filed the shareholder resolutions with each company this past fall.

In all but 23 states and 266 cities, it is perfectly legal to fire someone because they are gay, lesbian, or bisexual. Therefore, corporate non-discrimination policies must specifically include "sexual orientation" to protect all employees from harassment and discrimination.

The resolution brought before Caterpillar asked the company to amend its written equal employment opportunity policy to explicitly prohibit discrimination based on sexual orientation. After discussing the issue with Ms. Goodridge, the company agreed to amend its non-discrimination policy. NorthStar then withdrew the resolution.

"Every company, whether public or not, has employees who are gay or lesbian in all levels of the company. To not include sexual orientation in the long list of attributes in a non-discrimination policy is ceasing to value these important and productive members of the corporate community," said Ms. Goodridge. Caterpillar joins 304 other Fortune 500 companies that have in place non-discrimination policies that include protections for gay and lesbian employees.

Equality Project members view the adoption and enforcement of non-discriminatory policies as a positive sign of exceptional management practices. The most far-sighted businesses recognize that they must be positioned to hire and retain the best talent, and that means committing to a workplace environment in which harassment and discrimination are not tolerated. The Equality Project is currently organizing support for the New York City Employee Retirement System's shareholder resolution at ExxonMobil which asks the company to restore the former Mobil's sexual orientation non-discrimination policy which was rescinded when Mobil merged with Exxon. More information is available at www.equalityproject.org.

Since 1990, NorthStar Asset Management, Inc. has provided personalized, socially screened portfolio management. NorthStar creates portfolios that bring a client's social concerns and financial objectives into balance. Our clients are encouraged to take action through investment, divestment, shareholder action and philanthropy.