In light of the University's recent divestment from Unocal, a controversial company involved in energy speculation in Burma, the Student Affairs and Athletics Committee of the Board of Visitors heard on Friday a student presentation regarding ethics in University investment.
The University needs a "plan for institutionalized ethics in investment," said Student Council President Abby Fifer. "We are delighted that the University divested from Unocal; we look at it as a case study."
The University's divestment sets an example and is a "small step to provide inspiration to take a leap" toward an international code of ethics in investing, she said.
Unocal is an oil company that has been accused of hiring corrupt Burmese soldiers to protect a natural gas pipeline in Southeast Asia. A California federal judge has ruled that evidence suggests soldiers have raped, murdered and enslaved local villagers. The judge declined to rule that Unocol intentionally encouraged these practices.
Although the University only owned 0.02 percent of Unocal's publicly traded stock, the divestment had tremendous symbolic impact, said Andrew Price, President of the Free Burma Coalition.
News of the University's divestment has been broadcast on Radio Free Asia and has inspired real hope in Burmese people, he said.
He added that divestment helped put the reputation of ethically questionable companies on the line, he said.
"This is a great step toward promoting ethics not just on Grounds but throughout the world," he said.
Price outlined several suggestions for the Board on how to improve investment ethics, including the establishment of a student and faculty investment ethics advisory board, a policy requiring University to vote in shareholder resolutions, and specific divestments from other ethically questionable companies.
Requiring the external money managers who manage the University's endowment fund to abide by a code of conduct in all University investments would also promote ethical investments, said Price.
Although many members of the Board praised Student Council for its role in the Burma issue, Board member Benjamin Warthen expressed concern that so few members of the student body openly expressed support for the Student Council's position and recent actions.
"99.9 percent of students are unconcerned about the issue," he said. "Is Student Council truly reflective of the student body? Somehow I want to see more support."
The University divested from Unocal last week when Richard Mayo, an independent University investment manager, sold the stock in response to a severe drop in the stock's value after the Sept. 11 terorist attacks in New York City and Washington, D.C, and in response to student ethical concerns on Grounds.
The investment manager made the decision to sell completely independent of the Board of Visitors.
The Board does not deal with the everyday trading of University stocks, Board secretary Alexander "Sandy" Gilliam Jr. said.
"Mr. Jefferson would be very proud" of the concerned student groups, Board member Terence P. Ross said. "With reasonable civil discourse... you persuaded people," he said, praising Fifer and Price for their work.
During Student Council's presentation to the Board, about two dozen protestors gathered on the steps of the Rotunda to voice their support.
"We're here to voice our support for investment ethics," fourth-year College student Ross Kane said. "It's a matter of the University using the leverage it has as an investor to support ethics in the international community"
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