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Cedar Rapids - The Gazette: Letter to the Editor on Divestment
Letter to the Editor
UI should pursue socially responsible investments
The Nov. 24 editorial, ‘‘Defining the goal of UI investments,’’ dismisses the idea of socially responsible investments as ‘‘problematic.’’ The editorial asserts that the issue is valid, but too complex and risky. Thus, no change should be pursued.
We share the concern that ‘‘socially responsible investments’’ is ambiguous, especially in a university setting comprised of thousands of individuals with different opinions on how inclusive such a term should be. However, we believe a working definition of socially responsible investments can be derived from existing university policies on human rights. The University of Iowa Human Rights Policy as well as the Code of Conduct for Licensees, which applies to all corporations that use the UI’s logo, include provisions on discrimination and basic workers’ rights. Many colleges and universities have social-responsibility policies and oversight committees for their investments. We urge the UI to join these institutions in making support of ethical business practices another goal of investments.
The adoption of a social responsibility policy for investment would not have to compromise the other goals of our portfolio to be secure and profitable. In fact, we have proposed socially responsible funds that have consistently outperformed several of our current holdings over three-, five- and 10-year averages.
Additionally, a 1998 study by two UI professors found a strong correlation between a company’s financial and social performances. The editorial also asserts that socially responsible investing is inherently risky, but such funds have assets totaling $2.18 trillion and have performed consistently and competitively for more than 20 years.
Finally, we are not proposing immediate or full divestment. Gradual and partial implementation of a socialresponsibility policy will ensure the UI makes investments that are profitable and coincide with our alleged commitment to human rights.
Chad Aldeman and
Ethan Grundberg
Iowa City
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