By JOANN LOVIGLIO
Associated Press Writer

April 1, 2002, 5:39 PM EST

PHILADELPHIA -- In an action reminiscent of the anti-apartheid movement two decades ago, Swarthmore College is using its stockholder status to press Lockheed Martin Corp. into adopting a nondiscrimination policy based on sexual orientation.

The Quaker-founded college in suburban Philadelphia has submitted a resolution calling on the defense giant to add language to its equal employment opportunity policy specifically stating the company does not discriminate against homosexuals, bisexuals and transgender people. Shareholders will vote on the measure at an April 25 meeting in San Diego.

"We hope that our actions will not only lead to change at Lockheed Martin but will also exert pressure on other Fortune 500 companies to update their policies and encourage colleges to use their power as shareholders for social good," said Morgan Simon, a Swarthmore sophomore who will represent the college at the meeting.

Swarthmore, an exclusive liberal arts college with 1,450 students, was founded in 1864 by members of the Religious Society of Friends. Officials did not say how much of Swarthmore's $950 million portfolio was invested in Lockheed Martin.

Lockheed Martin already has a comprehensive nondiscrimination policy in place that, though it does not explicitly mention sexual orientation, is all-inclusive, company spokesman Jim Fetig said Monday.

The college's Committee for Socially Responsible Investing, established four years ago and made up of students, college administrators and other officials, drafted the resolution.

It marks the first time a college or university has solely initiated a resolution since schools nationwide campaigned against companies who invested in South Africa before apartheid was lifted in 1994, said Carolyn Mathiasen of the Washington-based Investor Responsibility Research Center, which monitors shareholder and management proposals.

"These resolutions never get very large votes -- it's good if you get a 15 percent vote (in favor of) a social issue -- but don't think that means corporations don't pay attention to them," Mathiasen said. Some companies have changed policies through negotiation before a proxy vote is ever held, though they aren't required to do anything, she said.

Swarthmore chose Lockheed Martin because of the perceived impact such a policy change would cause at a large, high-profile company, Simon said. The school also believes the change would enhance Lockheed's competitive edge by "joining the ranks of major competitors guaranteeing equal opportunity for all employees," the resolution states.

Lockheed Martin competitors, including Boeing, Honeywell and Raytheon, already have such policies in place.

After a resolution is submitted to and approved by the Securities and Exchange Commission, it must be circulated to all shareholders for a vote at the annual meeting. Nonvoting shareholders are considered to vote in favor of management.

To file a resolution, a shareholder must have at least $2,000 invested in the company for at least one year. They or a representative must also attend the company's annual shareholder meeting.

On the Net:

Swarthmore University resolution, http://www.sccs.swarthmore.edu/users/02/rkondrad/sri.html

Lockheed Martin proxy statement, http://www.lockheedmartin.com/investor/annualreport/proxy2002.pdf

Investor Responsibility Research Center, http://www.irrc.org