Repository: UIHistories Project: Board of Trustees Minutes - 1988 [PAGE 167]

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1987]

UNIVERSITY OF ILLINOIS

157

Whereas, the intransigence of the government of South Africa to abolish apartheid and recognize the fundamental human, political, and economic rights of all of its citizens is causing the Congress and the president of die United States to reconsider U.S. policy toward South Africa; and Whereas, die business risks related to continued operation in South Africa are increasing as social unrest in that country escalates; and Whereas, the recognition of diese risks has prompted increasing numbers of U.S. corporations to cease or diminish business activities in Soudi Africa; and Whereas, the ability to diversify die investment of University funds in corporations and industries that do not have business ties to South Africa is enhanced by such an exodus; and Whereas, die ability of U.S. corporations which continue to have business activity in South Africa to attract new capital will be diminished as major institutional investors eliminate such corporations from dieir portfolios, such investors today include 39 cities, 15 states, and 11 AAU institutions (as many as 100 schools have adopted eitiier partial or total divestiture policies since 1981); and Whereas, a high standard of fiscal prudence is required when investing the funds held in trust by die board, such prudence being in contrast with the social and economic volatility occurring in South Africa, Now, Therefore, the Board of Trustees of the University of Illinois declares: 1. That the rapid deterioration in the stability of the political, economic, and social structure of South Africa, together with the accelerating number of state, university, local, and other institutional investors which have adopted divestment policies may have a negative effect on University investments in corporations doing business in South Africa; and 2. That die Reverend Leon Sullivan, the principal advocate of eliminating apartheid through affirmative involvement of U.S. corporations in South Africa, established a two-year timetable in May of 1985 when he stated, " . . . if Apartheid is not actually and in fact statutorily abolished as a system within the next 24 months [by May 31, 1987], all U.S. companies should withdraw from Soudi Africa...." Now, Therefore, die Board of Trustees resolves and adopts the following amendment to its policy widi respect to the investment of University funds in corporations and banks doing business in South Africa: 1. Effective immediately, the University will support die following shareholder resolutions: (1) die witiidrawal of that corporation's operations from South Africa; (2) to furnish information regarding