Pro-democracy campaigners yesterday welcomed a move by eight fund managers to highlight the dangers to shareholders of companies operating in Burma.
But activists from the Burma Campaign said the initiative did not go far enough and should have called on companies such as Premier Oil, BAT and Sea Containers to pull out of the country.
"The funds have given a clear warning that there are serious risks and repercussions for companies who choose to work in Burma and this is very welcome," said John Jackson, director of the Burma Campaign UK. "Their analysis is good but their recommendations aren't far-reaching enough. Given the risks, they should be calling for disinvestment."
At the weekend, financial institutions with £400bn worth of investments under management warned that companies operating in unstable political environments risked damaging their reputations and their share prices.
They fell short of calling on operators to leave such countries, saying detailed risk as sessments and social programmes should be undertaken.
Premier Oil yesterday reiterated its belief that it could help in the development of Burma through its massive investment project in gas production and pipelines. Executives said a recent report from the International Labour Organisation recognised that economic modernisation was crucial to changing the political and social environment there.
John van der Welle, financial director of Premier, said: "The attitude of the international community towards Burma is changing towards constructive engagement. We have always believed in that and have been using independently assessed social audits and human rights training to help the situation there."
The campaign questioned whether Premier could meet the criteria for good practice in the fund managers' statement. It said the British oil group had not sought investigation or prosecution of security forces protecting its pipeline, which had committed abuses.
"You can't operate in Burma without financing its appalling dictatorship," Mr Jackson said.
