University News
Corporation decides against total, immediate divestment
From the Archives
By Katherine Hinds
October 29th, 2024
After months of committee meetings, subcommittee meetings, reports, protests, and deliberations on the issue of divestment of South African stocks, the Brown Corporation reached a decision. As its February meeting, the Corporation voted for a limited, phased divestment, over a two-year period, of companies not striving for full compliance with the Sullivan Principles.
The Corporation approved and strengthened a set of resolution drawn up by a subcommittee of trustees chosen months ago to review the question of Brown’s South African investments. “During a long session in which a number of trustees spoke eloquently on both sides of issue of divestment, there was agreement that the system of apartheid was repugnant an unacceptable,” said Robert A. Reichley, vice president for university relations.
The resolution calls for divestment within a year of all holdings of companies which, as of February 28, 1986, are listed in Category III of the Sullivan Principles (“Needs to become more active; passed basic requirements”) by the monitoring firm of Arthur D. Little Co. By February 1987, any companies remaining in Category II (“Making good progress”) companies, based on the role those companies have played in the dismantling of South Africa.
PHOTO: JOHN FORASTÉ / BROWN ARCHIVES
This last recommendation differs from the subcommittee’s recommendations. The Corporation amended the subcommittee recommendation to make it clear that by 1988 it expects companies remaining in its portfolio to make “a significant contribution to the removal of apartheid.” The Corporation also asked President Howard Swearer to report to its Advisory and Executive Committee this spring, on ways in which Brown can bring its educational expertise to the assistance of South African students and educators.
“The trustees also agreed that Brown should help move companies in its portfolio to Category I as soon as possible and, by 1988, we should expect from even those companies significant contributions toward ending apartheid by 1988,” said Reichley. “There was also a recognition that universities should do what universities are specially equipped to do, and that is to use their knowledge and experience to assist South African students and educational institutions. Because of that strong feeling among trustees, the Corporation further amended the resolutions asking the president to outline a program within Brown’s means to move toward the end.”
Brown currently owns stock in thirty-eight United States companies doing business in South Africa. None is in Category III of the Sullivan Principle ratings. The University owns stock valued at $15,925,000 in eighteen companies in Category II, and stock valued at $10,805,000 in twelve companies in Category I. The University also owns stock valued at $8,474,000 in eight companies that are in Category V (“New signatories”), which have not yet been rated by the monitoring firm.
In addition to the subcommittee of trustees studying the issue, the Corporation met with members of Brown Divest and considered opinions from a Campus Committee on South Africa, co-chaired by Philip Bray ’48, Hazard Professor of Physics, and Matthew Carroll ’86. The Campus Committee submitted recommendations essentially the same as those of the faculty resolution. Individuals in both the Campus Committee and the Corporation subcommittee submitted dissenting opinions. In his dissent from the subcommittee, former Governor of Rhode Island Frank Licht ’38 argued for full divestment within two years unless “there were objective facts during the period … which will demonstrate the dismantling of apartheid and the acceptance of dialogue and movement towards a reconciliation of the parties in South Africa.” Bray submitted a minority opinion to the Campus Committee report arguing that a presence of United States companies in South Africa has the potential to exert pressure for constructive change. He believes the University should not rush to divest even companies in Category II.
Students who wanted the University to divest totally were not happy with the Corporation’s decision. They held a press conference following the decision, at which time Ellen McClain ’86, a member of Brown Divest, said, “We’ve just about exhausted all proper channels” in seeking full disclosure, and declared that “the campus is mobilizing in protest.” At the end of the first week after the Corporation's decision, a “socially conscious” theater group, Free Theater, held a mock Corporation meeting on the Green, ending with loud chants of “You will divest” directed at University Hall. A few days later a short sit-in was held in University Hall while several students met with the president. The next day, President Swearer, Fellow Charles C. Tillinghast ’32, and several other administrators met with the students again, and turned down their appeal to reconvene the A&E Committee to consider the issue. “We had a frank exchange and there were very definitely two points of view,” Reichley told the Providence Journal.—Katherine Hinds
A chronology of divestment of Brown
April 13, 1984: Corporation Advisory and Executive (A&E) Committee approves resolution to divest in U.S. companies doing business in South Africa that have not signed the Sullivan Principles.
Summer 1984: University divests stock valued at $4.6 million in six nonsignatories.
February 4,1985: South Africa teach-in, sponsored by Third World Coalition and Rainbow Coalition.
April 3, 1985: Divestment Forum in Sayles Hall, sponsored by Brown Divest and Free South Africa movements.
April 24, 1985: Brown Divest and Free South Africa hold press conference urging University to divest completely.
September 19, 1985: President Swearer sends letter to campus community calling for full discussion of South Africa question; two committees set up to hear views.
September 19, 1985: South Africa teach-in held in Lower Manning.
September 26, 1985: Undergraduate Council of Students (UCS) approves referendum on divestiture for October 9-10.
October 1, 1985: Divestiture discussed, not acted upon, at faculty meeting.
October 10, 1985: Students approve referendum for total divestiture
October 11, 1985: National Student Day of Anti-Apartheid activities on campus.
October 16, 1985: President Swearer joins coalition of universities and foundations to discuss educational opportunities with progressive South African universities and organizations.
October 19, 1985: A&E Committee passes resolution asking for committee recommendations “well in advance” of the February Corporation meeting; affirms February vote on the question. A&E also urges cooperation with other institutions to promote democracy in South Africa as well as pressuring U.S. companies in South Africa to actively oppose apartheid.
October 21, 1985: Brown Divest holds press conference asking for explicit commitment to vote on divestment in February 1986.
November 5, 1985: Faculty passes resolution for complete divestment, in stages, by 1988.
November 6, 1985: South African Bishop Simeon Nkoane speaks in Manning Chapel.
November 8, 1985: A&E Committee votes to decide divestment question in February, with Corporation considering faculty resolution.
January 10, 1986: A&E Committee discusses committee reports in advance of February Corporation meeting.
February 14-15, 1986: Corporation discusses and votes on divestment question.
—Compiled by Brown News Bureau, 1986.
This article originally appeared in the Brown Alumni Monthly, March 1986, Vol. 86, No. 6.
To read the original article announcing the South Africa divestment discussion, please read our archival article from May 1984, Vol. 84, No. 8.
