At its first meeting of the semester yesterday, the Brown University Community Council discussed two proposals - one on the University's possible divestment from companies conducting business in Sudan or with the Sudanese government and another from the Student Labor Alliance urging the University to purchase apparel manufactured under the Designated Suppliers Program. The BUCC addressed these issues at its last meeting in November, though members decided then that both warranted further discussion.
Professor of Economics Louis Putterman, chair of the Advisory Committee on Corporate Responsibility in Investing, provided an update on that committee's Feb. 1 meeting that resulted in a recommendation in support of divestment from companies tied to Sudan. The ACCRI proposal was unanimously supported by the BUCC and will be addressed at next weekend's meeting of the Brown Corporation.
The companies named in the recommendation include PetroChina, the ABB Group and the Marathon Oil Corporation. All of the companies have previously been targeted for divestment by Amherst College, Dartmouth College and Stanford University. "All the members of the (ACCRI) were unanimous that Brown should take this position and announce this position in order to make some sort of difference in Sudan," Putterman said.
The ACCRI's proposal falls short of the recommendations of Students Taking Action Now Darfur, a national group of which Brown's Darfur Action Network is an affiliate. Regarding investments held indirectly by the University, Putterman said that STAND had suggested sending a letter to the fund managers threatening to change managers unless they guarantee that money will would not be invested in the blacklisted companies.
Putterman said the ACCRI had been told that this would be a "difficult and costly" process. Instead, the ACCRI has suggested sending a letter to the managers "advising them this is Brown's position" but not "including specific threats," Putterman said. Amherst recently used the same tactic in dealing with its indirect investments.
Elizabeth Huidekoper, executive vice president for finance and administration, said the University's aim is "more about public relations and raising awareness" on the issue. "We won't cripple (the blacklisted companies) with Brown's endowment but it will get the ball rolling," she said.
The council also discussed the potential adoption of a proposal from the SLA under which the University would purchase apparel manufactured solely in Designated Suppliers Program factories. The Herald reported in November that the University currently purchases about $700,000 worth of apparel sold in the Brown Bookstore that is manufactured in as many as 560 factories. In addition, Brown's athletic programs purchase between $200,000 and $300,000 worth of apparel, according to Vice President for Administration Walter Hunter's November estimates.
The University currently purchases from licensors that agree to uphold the code of conduct outlined by the Worker Rights Consortium. However, Chris Eaton '06, an SLA member, told The Herald in November that it is difficult to ensure that licensors comply with the code. The WRC recently voted in favor of the DSP. Hunter will be attending a WRC conference Friday in Washington, D.C. to discuss the proposal.
DSP factories adhere to a code of conduct under which their workers belong to a union and receive living wages.
At yesterday's meeting, Hunter raised several concerns regarding the University's adoption of the SLA's proposal. These included whether the University could find enough DSP factories to meet its production needs, the possible effect on competition among various licensees, potential job losses for current workers, possible union corruption and concerns about how workers would be selected.
Hunter said the University needs to evaluate whether "a program like this (would) help the very people who are in severest straits right now," adding that he "would like to improve conditions for workers who are currently manufacturing for Brown." It is unknown if more skilled workers would be hired in the designated factories, thereby forcing current workers to go "from poverty to starvation," Hunter said.
A committee of students, faculty and administrators has been formed to address these questions. "(The committee) really seems to be dedicated to coming up with an intelligent situation ... instead of a raw motion," Hunter said.
