For the second year in a row Nordstrom Inc., is coming under scrutiny by its shareholders that are asking for a report on the multi-channel marketer's efforts to deter abusive sweatshop practices.
The inquisition focuses on hundreds of Nordstrom's contract suppliers around the world. Domini Social Investments, which filed the resolution to request the report, manages a $1.7 billion family of socially screened mutual funds, and holds 37,700 shares of Nordstrom, according to Domini Social Investments.
Shareholders contend the company should be doing more to ensure that a code of conduct that Nordstrom has adopted is enforced at supplier plants around the world, and should provide a public report on its progress, Domini Social Investments said in a statement. Nordstrom settled a lawsuit in 1999 alleging illegal labor practices by its suppliers in the U.S. territory of Saipan.
