Madison citizens and students voiced concern about UW System company investments at a Thursday UW Board of Regents forum.
Concerns ranged from fair labor standards to policy noncompliance to social values.
Madison resident Roger Smith said UW’s investment in Philip Morris is unethical.
“Philip Morris is the No. 1 company working to addict young people to tobacco,” Smith said. “Philip Morris has not adhered to their own voluntary policies against aiming at the young.”
Nevertheless, Kevin Boatright of UW Communications said all companies may have some controversial policy.
“The university in the past has shown its willingness to listen to people,” he said. “But the truth is, there’s hardly a company in the world a person couldn’t find fault with.”
Investment is necessary for UW’s financial well-being, Boatright said.
“If we didn’t invest in anything, the university would suffer financially,” Boatright said.
However, Peter DeSimone, senior analyst and project manager for the Investor Responsibility Research Center and advisor to UW, said the university is concerned about socially responsible investments. DeSimone spoke about UW investment goals.
He said human-rights concerns always figure in decisions about which companies UW will invest in.
“Concerns about [human rights abuses in] Burma figured high,” DeSimone said.
University bylaws as well as social concerns drive investment decisions, DeSimone said. The Board of Regents makes decisions based on proxy voting — a system where each member votes on every issue. This year’s proxy votes endorsed such investment-related issues as requiring reports on executive compensation related to performance and social issues, preventing predatory lending and the adoption of a sexual-orientation nondiscrimination policy.
However, student organizations often find fault with the investments. They voiced their concerns following DeSimone’s speech.
John Peck of the UW Greens, said it is important to invest in trust funds geared toward improving social conditions. However, he said, the investments currently made by UW do not further that interest.
“Trust funds may not be improving social conditions,” Peck said.
Peck said measures exist to curb various abuses by companies UW has invested in, but he also said that the measures do not work.
“I am unconvinced that policies really exist except on paper,” Peck said. “[UW Greens] suggested divestment from bad corporate actors.”
Pabrita Benjamin, of Movimiento Estudiantil Chicano de Aztlan, said the process of selecting companies to invest in was not upholding current investment requirements.
“I don’t think we’re screening very well,” Benjamin said. “[Possession of stock relating to] private prisons, exploitation of native land and profit from modern-day slavery is non-compliant.”
However, Benjamin said UW does invest in companies relating to private prisons.
“The Lehman Brothers, a company in which the UW holds 2,800 stocks, makes sure corrections corporations (private prisons) survive,” she said. “There are a disproportionate number of people of color in prisons. Private prisons are built with the idea that the government pays a per-diem rate for the number of people in the prisons. You can’t say our $300,000 isn’t going into this through the Lehman Brothers.”
Mike Clark, a UW student, commended Board members but said other companies would be a better choice.
“I know you are trying your best,” he said. “But I urge you to invest in local companies.”
