The United States is known to have the most efficient financial markets in the world. It owes its premier status principally to its high standards of financial disclosure, which are stronger than anywhere else in the world. That may seem like cold comfort in the aftermath of Enron’s bankruptcy and other recent examples of substantially overstated earnings. But the shock wave created by Enron will likely bring needed reforms that, in the end, will strengthen an already robust system of required information disclosure.

What may be less well known is that the US also leads the world in access to information about corporate social and environmental performance. A great deal of this information is freely available over the Internet, from the Labor Department, Environmental Protection Agency (EPA), and Occupational Safety and Health Administration. Under the Freedom of Information Act, Americans can receive extensive data and documentation on corporations’ activities and policies.

In fact, much of the information we at Calvert Group use to assess companies’ environmental impact, labor practices, protection of worker safety, treatment of unions, product safety, and other aspects of social performance comes from these sources. This data, even in raw form, is “worth its weight in rubies,” particularly when we contrast it to what is available overseas, even in other developed nations.

Unfortunately, access is now threatened. The dreadful events of September 11 have rippled throughout the country and the economy in countless ways. One of the ripples was the removal of information on corporate performance from many agencies’ Web sites and, in some cases, from other forms of public access.

For example, the EPA removed from its Web site information on Risk Management Plans, which described the risks involved in chemical accidents, hazard assessment, and emergency response plans. The Agency for Toxic Substances and Disease Registry dropped a report on site security at chemical plants; and the Federal Aviation Administration removed data on enforcement actions from its Web site. And last October, the attorney general urged all federal agencies to exercise greater caution in disclosing information under the Freedom of Information Act.

These actions were taken in the name of national security, and surely concern is warranted. But concern for security and privacy must also be weighed against other outcomes when businesses’ social and environmental practices are concealed. It has taken many years, and sadly, many lives to win the standards of protection and disclosure we now enjoy, and we should not be quick to sacrifice that progress.

There has never been a time when socially responsible investing was more needed than now. Much of Calvert’s shareholder activism in 2002 is focused on disclosure. This year, Calvert has filed over two dozen shareholder resolutions -- and conducted many company dialogues -- on disclosure issues ranging from greenhouse gas emissions, to the design and recycling of electronic equipment, to global labor accountability and standards.

Last year, Calvert urged the Financial Accounting Standards Board (FASB) to develop accounting standards for intangible liabilities, such as environmental and labor liabilities, and FASB recently launched the study. Calvert has petitioned the EPA to make greater environmental compliance and enforcement information publicly available. Later this year, the agency is expected to announce that this information will be made public.

National security is about far more than terrorism. It is about freedom from many kinds of threat, including the threat of disease caused by poisoned soil and water, and from unsafe workplaces and workplace exploitation. One of the best means we have to protect ourselves is disclosure. Sunlight, it is often said, is the best disinfectant.

As leaders in socially responsible investing, Calvert will continue to urge full disclosure on the part of the government and corporations. Ultimately, restricted access to information could adversely affect not only Calvert’s ability to assess and invest in companies whose policies and practices we support, but the profitability of the companies themselves, and the vitality of our markets.

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Dr. Julie Gorte is Interim Director of the Social Research Department at Calvert Group Ltd. © 2002 Calvert Asset Management Company, Inc.