University of Iowa Campus Greens

Gazette Article | Information | Plans | Form Letter | Targeted Corporations

University Divestment Campaign

Background Information

Download the Divestment Information Sheet

As of June 30, 2004, the University of Iowa had $133,662,400 invested in mutual funds as authorized by the Board of Regents. The corporate stock holdings of these mutual funds have a history of discriminating against women and minority groups, exploiting child and sweatshop labor, using environmentally devastating practices, and lending irresponsibly to developing nations. While we certainly understand the University's desire to make financially competitive investments, the University of Iowa Campus Greens and other student groups are gravely concerned with the collection of corporate stocks included in these funds.

The University of Iowa Campus Greens began a campaign to change the investment strategy of the state universities. The campaign will soon be undertaken by the Coalition for Investment Reform. To join the listserv for the Coalition for Investment Reform, please contact Doug or Mike.

Read the article in The Gazette about the campaign

Additional information is available in the links section.

Updates

Investment Reform Event

Come to the event on February 2 to learn more about the divestment campaign and how you can get involved with the Coalition for Investment Reform!

The event will include a presentation by Frank Schmidt from the College of Business and will be followed by a discussion.

When: February 2, 7:30 PM
Where: Shambaugh Auditorium (northeast side), UI Main Library

Administration Response

The Vice President for Finance and Operations and University Treasurer has responded to the call for divestment. In an email to Ethan (which President Skorton asked that he pass on to others), the Vice President acknowledged the issue and said the university was taking action. An excerpt of the email follows (highlights added):

The University is very aware of the issues you raise about socially responsible business practices. I have met with the University’s Human Rights Charter Committee and discussed with them the issues raised and requests made by the UI College Greens and Students Against Sweatshops. I have also informed members of the Board of Regents Investment Committee of these issues.

In the coming weeks we will review our internal investment processes and the legal authority we have regarding the issues the College Greens and others have raised. In addition, we will ask financial experts the expected impact(s) of a change in investment strategy and will query other major public universities regarding their policies and practices regarding socially responsible investment strategies.

Throughout the discussion, we will involve not only the Human Rights Charter Committee, but also the University community at large including members of the faculty advisory committee on investing. We will share with you what we have learned once we have had an opportunity to review the matter in greater detail. I would hope that this would occur within the next three months."

Plans for the divestment campaign:

Emailing President Skorton, the Finance department, and the Regents about the presentation to the Human Rights Committee
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Contacting student government
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Making form letters for the website
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Having the Website completed with the Divestment letter available
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Sending a mass email to the UI Student Body
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Creating a broad coalition for reform
Changing university policy

Form Letter

Dozens of the letter below were sent to President Skorton to show that the investment of university resources is important to the university community. Due to the letters, the university is reviewing investment policy.

Download the Form Letter (Word Document)

To Whom It May Concern:

I am writing to voice my concern with the university's investment policies. It has come to my attention that our institution currently invests hundreds of millions of dollars in corporations that have a history of discrimination based on gender, race, and sexual identity; exploitation of child and sweatshop labor; and use of environmentally devastating practices. The UI should only invest in corporations that exhibit socially and environmentally responsible behavior according to our Human Rights Policy and Code of Conduct for Licensees.

Our Human Rights Policy states that the University should not discriminate based on "race, creed, color, national origin, age, sex, disability, sexual orientation, gender identity, or any other classification. . .." Furthermore, the University ". . . shall work cooperatively with the community in furthering these principles." By investing in mutual funds that have holdings in corporations like Wal-Mart, General Electric, Exxonmobil, Citigroup, and Home Depot, the University compromises its alleged commitment to human rights.

In order to fulfill our commitment to human rights, we should immediately invest at least $500,000- less than half of one percent of our total investment- in socially responsible mutual funds. Such funds screen their holdings to exclude corporations with a history of human rights and environmental offenses. Many of these funds, such as Russell 3000 and Citizen Emerging Growth, not only surpass current University investments in social responsibility, but are also financially competitive. By January 2006, at least 5% of the endowment should be invested in socially responsible funds. Ideally, the University should screen all new investments for both financial performance and social responsibility.

I thank you for your time and appreciate your consideration of this matter.

Sincerely,

[Name]
[University Affiliation]

Targeted Corporations

The University of Iowa invests in the following corporations with questionable human rights records:

Wal-Mart Stores, Inc
Citigroup Inc
Home Depot U.S.A
General Electric
ExxonMobil

Learn more by downloading the Divestment Information Sheet.