The Ethical Funds Company reports that a shareholder proposal it sponsored, calling for Power Corp. to protect and promote human rights in Tibet and China, has received the support of 10% of shareholders.

The firm explains that it filed the shareholder proposal because of Power Corp.’s participation in a joint venture with Bombardier for the construction of rail cars that will be used on a controversial railway linking China and Tibet. “Tibetans fear that the railway will have negative environmental impacts as well as extend the ability of the Government of China to assert its authority and control in Tibet,” it says. “China has a well-documented history of human rights violations both within China and Tibet. Power Corporation has yet to develop a policy to help promote and protect human rights in countries where human rights violations occur.”

“The Ethical Funds Company is not asking for Power Corporation to divest from China,” says Robert Walker, vice president of Ethical Funds. “We are asking that Power Corporation begin to systematically assess the human rights implications of its investment activity and implement a human rights policy to mitigate these risks. This is both warranted and prudent given the company’s exposure to investments in China and Tibet.”

Walker adds, “Given that the Desmarais family controls more than 63% of Power Corporation’s voting rights, this result means that a significant proportion of shareholders want Power Corporation to address the human rights issue.”

It reports that Power’s chairman and co-CEO Paul Desmarais Jr. acknowledged that the firm is willing to examine existing voluntary frameworks for promoting and protecting human rights. The United Nations Global Compact was identified as one possibility for moving forward on the issue, it adds. The Global Compact asks companies to adopt and implement 10 universal principles in the areas of human rights, labour rights, environmental protection and anti-corruption.