Repository: UIHistories Project: Board of Trustees Minutes - 1980 [PAGE 217]

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1979]

UNIVERSITY OF ILLINOIS

207

Whereas, the Finance Committee, in its continuing efforts to recommend a responsible policy as a shareholder, remains convinced that the question of withdrawal by U.S. corporations is not a simple one and that responsible minority voices in the United States and in South Africa have spoken against withdrawal; and Whereas, the Board of Trustees of the University of Illinois opposes racial injustice and that such injustice and oppression of human rights exists in South Africa. Now, Therefore, Be It Resolved that the Finance Committee recommends to the Board of Trustees that the current policy of the Board be amended as follows: A. Shareholder Petitions T h e University of Illinois will support shareholder petitions for withdrawal of a company, in which the University of Illinois has investments, from South Africa in the following instances: 1. The company will not adopt principles, such as the Sullivan Principles, whose objective is to provide improved opportunities and employment practices for nonwhites. 2. The company refuses to demonstrate within a reasonable period of time its determination to initiate progressive employment practices. 3. The company fails to implement effectively such practices. 4. T h e company's continued presence in South Africa does more to strengthen the apartheid regime than to contribute to the welfare of the nonwhites. B. Stock Divestiture Because of our belief that the University can more effectively influence company policy by correspondence, shareholder resolutions, and public statements than by divestiture, the divestiture of stock in companies doing business in South Africa would be appropriate only under very limited circumstances. However, when persistent efforts to persuade a company to abandon unethical practices have proved ineffective and the oudook for future success seems hopeless, divestiture may be justified as a last resort. Accordingly, the University will consider divestiture if the following conditions obtain: 1. T h e company has failed substantially to conduct its business in a manner consistent with the policy established by the Board of Trustees. 2. T h e company has failed to amend its policies in spite of our persistent efforts to persuade the company to conform with the policies as established by the Board of Trustees. 3. The company clearly indicates that it will not amend its position and policy to conform with the policy as enunciated by the Board of Trustees. C. Bank Investments The University will apply the same stockholder and divestiture policy for banks doing business in South Africa (see A 1-4, B 1-3). D. Implementation of University Policy T o carry out the policy outlined in this statement, the University will take the following steps: 1. We will inform the managements of portfolio companies of our policy as set forth in this statement. 2. We will support shareholder resolutions which are consistent with this policy and support monitoring of the follow-up and implementation of the Sullivan principles. T h e University recognizes that this policy formulation should be reexamined from time to time, in light of changing events in South Africa.