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Article

3 Aug 2010

Author:
Sigrid Rausing, in Ethical Corporation

The Vedanta case: A CSR wake-up call for sleeping investors

Vedanta Resources…has come under international scrutiny for its plans to mine bauxite in the Indian state of Orissa. Responsible investors have been engaging with the company, and some of these have divested…Other investors have taken the decision to vote against…[resolutions] at the company's AGM this week. This is already new territory for shareholders who are usually cautious about sending such strong public signals of disapproval to companies that they invest in…Investors sometimes argue that they are ethically neutral… Is the case of Vedanta the exception that proves the rule? Or are the sands beginning to shift in a way that might have considerable ramifications for the investment community as a whole…?...Dutch pension manager PGGM divested their £11m stake in the company earlier this month...