Partial List and Descriptions of US Colleges and ...



Sampling of Universities and Colleges with active SRI Advisory Committees

Barnard College

Endowment size FY2002: $126 Million

Advisory Committee on Socially Responsible Investing (ACSRI)

The ACSRI acts primarily to vote on all social issues proxy resolutions. Recommendations are reviewed by the Board of Trustees (BOT) for approval or rejection.

The ACSRI is composed of two students, two alumni, two faculty members, and one non-voting administrator from the Investment Office. The President appoints nominees from the Student Government, the Faculty Governance and Procedures Committee, and the Associated Alumnae of Barnard College.

Unlike most committees at other schools, the ACSRI reports directly to the BOT. All proxy resolutions and recommendations are presented to BOT which proceeds to either approve or reject them immediately. Over 95% of all ACSRI recommendations have been approved by the BOT.

The University provides the Committee with IRRC services via the Investment Office as well as current endowment information. The ACSRI did not have access to the endowment portfolio during the 2002-2003 school year, however the ACSRI and the BOT agreed that the ACSRI could not properly function to its fullest capacity without current endowment information. Such information is now available to the ACSRI and available to the university community orally from Committee members.

Committee information from telephone interviews with Vice President of Finance Andy Manchell and ACSRI Chair Gretchen Cowlatso.

Brown University

Endowment Size FY2002: $1.4 Billion

Advisory Committee on Socially Responsible Investing

The ACSRI deals solely with shareholder advocacy by voting on all social issues proxy resolutions. Approximately thirty resolutions are debated and voted on each year.

Currently the nine-member ACSRI sends all recommendations to the Proxy Committee, a subset of the Board of Trustees Investment Committee, which has power of approval or veto.

During the 2002-2003 year the ACSRI developed a set of proxy voting guidelines which are currently being reviewed by the Board of Trustees. If the guidelines are approved, the ACSRI will refer to them when reviewing all proxy resolutions and recommendations will no longer need approval. If issues arise that are not mentioned in the proxy voting guidelines, the ACSRI recommendations will be reviewed by the Advisory and Executive Committee of the President for approval or veto.

The ACSRI meets one time per month during the academic year. Its nine members include three faculty, two undergraduate students, one graduate student, and three alumni. The President appoints one member to become the Chair with responsibilities to set meeting agendas, scheduling meetings, and moderating meetings. All members have access to the IRRC services, provided by the Investment Office.

All meetings are open to the public except those in which the ACSRI requests information regarding a specific holding in the endowment portfolio.

The Investment Office acts as support to the ACSRI. The Director of Operations and one additional Investment Office staff person attend all ACSRI meetings as non-voting participants. They provide a link between the ACSRI decisions and the Board of Trustees. The Investment Office also provides a link between the ACSRI and Brown’s money managers in order to ensure efficient delivery and return of proxy resolutions.

Committee information from telephone interview with Director of Operations of the Investment Office Sandra Seibel.

Columbia University

Endowment Size FY2002: $4.2 Billion

Advisory Committee on Socially Responsible Investing (ACSRI)

The ACSRI was created in 2000 to create a channel between the university community and those making Columbia’s investment decisions. Before 2000, Columbia’s money managers voted with management on 100% of all proxy resolutions. Many Columbia faculty, students, and alumni found such voting procedures inexcusable, leading to the creation of the ACSRI.

Created in conjunction with the ACSRI was the Trustees Subcommittee on Shareholder Responsibility (TSSR), a corresponding three member group of Board members that meets separately but parallel to the ACSRI to review and vote on recommendations.

The primary task of the ACSRI is proxy voting, both on social issues and corporate governance issues proxy resolutions. Over the 2003 year the ACSRI reviewed and voted on 132 proxies, half of which dealt with corporate governance issues. Of these 132 recommendations, 90% were agreed upon by the TSSR. The ACSRI can also make recommendations encouraging shareholder initiatives or social screening, but it has not yet exercised the option to do either. The ACSRI is currently working to compose a set of proxy voting guidelines.

The ACSRI meets a total of six times during the summer, fall, and winter. During these times they decide what issues they would like to focus on, gather information through the IRRC, ICCR, and Institutional Shareholder Services (ISS), and hold a community meeting to hear what issues the University community would like addressed.

Over the proxy-voting season (between early March and late May when most publicly-traded corporations hold their annual meetings) the ACSRI meets one time per week. Each proxy resolution is reviewed separately and voted on. All ACSRI proposals to the TSSR include the ACSRI proposal, the company’s response, and the IRRC and ICCR response.

The ACSRI is composed of four students, four alumni, four faculty, and two non-voting administrators, the Vice President for Finance and the Director for Shareholder Responsibility. The President appoints members after they are nominated by the student government, the divisional vice presidents and deans, or the office of University Development and Alumni Relations.

The Director for Shareholder Responsibility is a position created for the sole purpose of providing support to the ACSRI. The duties of the Director include organizing meetings and public forums, writing annual reports, acting as a spokesperson for the ACSRI, answering questions from the University community and updating information for the University community.

Columbia makes available to the University community annually a list of those domestic and foreign corporations managed in its endowment. The list is updated at the end of every fiscal year. Current endowment information is available to the ACSRI upon request.

Each committee member of the ACSRI receives access to the IRRC.

Committee information from the ACSRI 2002 annual report and telephone interview with Ivan D. Gonzalez, Director for Shareholder Responsibility.

Harvard University

Endowment Size FY2002: $17.5 Billion

Advisory Committee on Shareholder Responsibility

Harvard was one of the first schools to adopt a system for promoting Socially Responsible Investing. Its two-committee structure and focus on shareholder advocacy have helped to set the precedent for nearly all university SRI policies.

The twelve-member ACSR sends recommendations to the two-member Corporation Committee on Shareholder Responsibility (CCSR) which has final authority to reject or approve recommendations.

Since 1972 the ACSR has stayed a steady course of primarily promoting SRI through shareholder advocacy, namely recommendations on proxy voting. However, it has also had the option of recommending social screening and shareholder initiatives. A recommendation to screen corporations profiting from the sale of tobacco was approved by the CCSR and implemented successfully in 1990. Recommendations to communicate with corporate management are fairly common and often approved; twelve such communications were made in 1998. When approved, the CCSR will take the initiative to communicate specific issues with corporate management.

The ACSR commonly reviews and makes recommendations on approximately one hundred proxy resolutions during the year, the vast majority falling within the proxy voting season. Resolutions are considered on a case-by-case basis before a recommendation is made by a majority vote of ACSR members. Recommendations are made with consideration of Committee discussion and IRRC background material. CCSR decisions are made with consideration of Committee recommendations and CCSR precedent on comparable issues. During the 2002 proxy season, the CCSR agreed and approved 77% of all ACSR recommendations, partially agreed with 11% (wished to abstain rather than vote for or against), and disagreed with none. The agreement and approval rate since 1972 is about 75%.

The ACSR is composed of four students (one undergraduate and three graduate students), four faculty, and four alumni; all serving two-year staggered terms. They are nominated by the student government, school deans, and the Alumni Association, and appointed by the president. The president appoints a Chair from the faculty members. The CCSR is composed of the Treasurer and a member of Harvard’s Corporation Committee. The ACSR is supported with a part time secretary who sets agendas, schedules meetings, and composes annual reports. The CCSR is provided with a full time secretary who fulfills similar duties.

The ACSR meets every Monday evening during the proxy season. A week beforehand each member receives a list of all upcoming resolutions to be discussed as well as a briefing paper with ACSR and CCSR precedent, IRRC company reports, and individual Committee research. Each Committee member is assigned a specific number of resolutions to brief the ACSR on. After the briefing the ACSR will discuss and vote on a recommendation against, for, or abstention.

Committee information from telephone interview with Associate Secretary Cheryl Thurman, The CCSR 2001-2002 Annual Report, a report called “An Historical Perspective: Harvard University Committees on Shareholder Responsibility 1972-1982,” and IRRC article “Harvard Provides Case Study in Proxy Voting” August/September 1999.

Smith College

Endowment size FY2003: $810 Million

Committee on Investor Responsibility (CIR)

The CIR was created in 1979 to create a forum for discussion about shareholder advocacy towards corporations doing business with South Africa. The primary goal of the CIR remains shareholder advocacy, but it has also made recommendations regarding social screening.

The CIR has formed a proxy voting guideline that is annually reviewed and updated when the need arises. When the issue of a proxy resolution is clearly addressed by the guidelines, Smith’s money managers will vote according to the guideline. If the issue is not addressed in the guideline, the CIR will discuss the resolution and make a recommendation.

Regarding social screening, the Board of Trustees approved recommendations to screen from its portfolio corporations profiting from tobacco sales and Talisman Energy, a Canadian company that does business with the military regime governing Sudan.

The CIR is composed of two students, two faculty, two administrators, and two members from the Board of Trustees who attend meetings when on campus.

Smith College’s Director of Investments attends CIR meetings as a non-voting member and works as a staff liaison to the CIR, providing both updated endowment information and IRRC reports to all members of the committee.

Committee information from Smith website and telephone interview with Director of Investments Jay Yoder.

Stanford University

Endowment size FY2002: $7.6 Billion

The Advisory Panel on Investment Responsibility

Created in 1971 as a forum a conversation on investing in South Africa, the APIR works in conjunction with the Board of Trustees’ Special Committee on Investment Responsibility (SCIR) to promote Socially Responsible Investing.

The APIR functions primarily to make recommendations to the SCIR regarding proxy voting for resolutions of both social and corporate governance issues. The APIR will also make recommendations on any new issues that necessitate attention.

The APIR functions as a channel between the University community and the Board of Trustees by holding public events where specific concerns may be addressed by members of the Stanford community.

The APIR is currently developing a set of proxy voting guidelines. Issues that have been included in approved guidelines include corporate global warming, human rights, and human rights in Burma. When these issues arise in proxy resolutions they are voted on according the guidelines.

The APIR is composed of twelve voting members including four students, four faculty members, two alumni, and two staff members. Members are nominated by the Faculty Senate Committee, the Student Senate Committee, and the president. The CEO of the Stanford Management Company is a non-voting member except in the event of a tie. A Chair is elected by all members and is responsible for scheduling meetings, setting agendas, moderating meetings, and conducting business via conference call when necessary.

The APIR meets at least twice during the year. To help in decision making the APIR is given current information regarding securities held as pooled endowment securities.

The University and the Stanford Management Company provide staff and secretarial assistance to the APIR.

Committee information from telephone interview with Director of Investor Responsibility Linda Kimball and 2002 Statement on Investment Responsibility Concerning Endowment Securities.

Swarthmore University

Endowment size FY2002: $894 Million

Committee on Socially Responsible Investing (CSRI)

The CSRI focuses primarily on shareholder advocacy, both by voting on all social issues proxy resolutions and introducing its own shareholder resolutions.

The CSRI is made up of four students, one board member, and three administrators (Vice President for Finance, Assistant Treasurer, and Investment Manager). The Board member meets when present on campus, but otherwise is present only occasionally via conference call.

All research for the CSRI is done by the four students. The other four members of the CSRI serve to review student recommendations, make available access to research services, and ultimately decide whether the recommendations will be approved or rejected. Swarthmore’s CSRI is unique in this way because it is the only committee which does not report to the Board of Trustees for a final decision to be made.

The CSRI reviews and makes recommendation on approximately ten social issues proxy resolutions each year. Research is done using a copy of the resolution, a statement from the management, the IRRC, the ICCR, Walden Assets Management, and other non-profit advocacy groups. The IRRC is available to student members via the three administrators on the Committee as is current endowment information. The names to all publicly traded holdings in the Swarthmore endowment are available to the University community.

The CSRI is unique in that it reserves a significant amount of time and energy for introducing its own proxy resolutions. Time is spent in the fall semester researching, drafting, and submitting resolutions to corporations. During the 2002-2003 year the CSRI introduced a successful proposal calling for Lockheed-Martin to broaden its anti-discrimination policy.

Committee information from telephone interview with Assistant Treasurer Carmen Duffy and student Committee member Nate Wessle.

Vassar College

Endowment Size FY2002: $554 Million

Investment Responsibility Committee (IRC)

The Committee functions primarily in the realm of shareholder advocacy. It makes recommendations on all proxy resolutions related to social issues, periodically contacts corporate management, and has the option to makes recommendations regarding shareholder initiatives, alternative investing, and social screening.

The Board of Trustees approved a recent recommendation to invest a percentage of the endowment in SRI mutual funds. Vassar currently holds $4 million in a Domini Socially Responsible mutual fund, representing less than .5% of the total Vassar endowment.

As of yet the Committee has never exercised the two options of shareholder initiatives or social screening. The Committee does not vote on proxy resolutions related to corporate governance issues.

Approximately forty proxy resolutions are voted on during the proxy voting season. A snapshot of the endowment is taken in February and run against an IRRC list of upcoming proxy resolutions which is available in March. Those resolutions which Vassar is eligible to vote on are requested from the money managers and then divided between the eight committee members for research and deliberation. Recommendations, made by a majority of committee members, are sent to the complementary Trustees Investment Responsibility Committee for review which approves nearly 100% of recommendations.

The IRC is made up of two students, two faculty, two alumni, and two administrators; the administrators with the purpose of providing IRC members with current endowment information and communications with the Board of Trustees and money managers. All IRC members have individual access to IRRC services.

Current endowment information regarding publicly traded holdings is available to the University community upon specific request.

Committee information from telephone interview with Investment Office staff member Steven Gainez.

Williams University

Endowment Size FY2002: $1.18 Billion

Advisory Committee on Shareholder Responsibilities

Founded in 1978 to serve as a channel for concerns and suggestions the university community had with Apartheid in South Africa.

The Committee’s primary function is making recommendations for social issues proxy voting to the Board of Trustees Staff and Finance Committee.

The Committee can also recommend other action in the realm of Socially Responsible Investing such as initiation of proxy resolutions or social screening.

Board of Trustees maintains right of veto over all Committee recommendations.

Williams College is eligible to vote on approximately 45 social issues proxies at the beginning of the proxy voting season in late February or early March. However, by the time of the annual meetings in May about half of the resolutions are dropped, either voided by the SEC or settled by corporate management. This leaves the Committee to review and vote on approximately 25 social issues proxy resolutions per year. In light of recent corporate scandals, the Committee is considering reviewing and making recommendations on governance issues proxy resolutions in addition to social issues resolutions.

The Committee meets during the proxy voting season.

Meetings are open to the public although minutes and voting records are not published.

An annual report is put out by the chair of the Committee.

The services of the IRRC are provided to all Committee members via the Manager of Investments. Background and Company reports are sent to all Committee members two weeks before the corresponding meeting.

The Committee is composed of two students, two faculty, two alumni, two administrators (the VP of Finance and the assistant treasurer), and one non-voting staff member. Faculty, administrators, and alumni are appointed by the University President. Students are appointed by the student government.

The Manager of Investments is the non-voting member on the Committee who serves as a liaison between the Committee and the Board of Trustees. The Manager reviews all Committee recommendations and votes them via the Treasurer’s Office. Due to the longstanding relationship between the Committee, the Board of Trustees, and the Manager of Investments, the Manager approves 100% of Committee recommendations and afterwards reports to the Board of Trustees. The Manager is also responsible for compiling annually a ten page report of domestic stocks and bonds held in the University portfolio, due at the end of the fiscal year, June 30th.

Committee information from telephone interviews with Manager of Investments Chris Wolfe and student Committee member Mark Orlowski.

Stanford University

Endowment size FY2002: $7.6 Billion

The Advisory Panel on Investment Responsibility

Created in 1971 as a forum a conversation on investing in South Africa, the APIR works in conjunction with the Board of Trustees’ Special Committee on Investment Responsibility (SCIR) to promote Socially Responsible Investing.

The APIR functions primarily to make recommendations to the SCIR regarding proxy voting for resolutions of both social and corporate governance issues. The APIR will also make recommendations on any new issues that necessitate attention.

The APIR functions as a channel between the University community and the Board of Trustees by holding public events where specific concerns may be addressed by members of the Stanford community.

The APIR is currently developing a set of proxy voting guidelines. Issues that have been included in approved guidelines include corporate global warming, human rights, and human rights in Burma. When these issues arise in proxy resolutions they are voted on according the guidelines.

The APIR is composed of twelve voting members including four students, four faculty members, two alumni, and two staff members. Members are nominated by the Faculty Senate Committee, the Student Senate Committee, and the president. The CEO of the Stanford Management Company is a non-voting member except in the event of a tie. A Chair is elected by all members and is responsible for scheduling meetings, setting agendas, moderating meetings, and conducting business via conference call when necessary.

The APIR meets at least twice during the year. To help in decision making the APIR is given current information regarding securities held as pooled endowment securities.

The University and the Stanford Management Company provide staff and secretarial assistance to the APIR.

Committee information from telephone interview with Director of Investor Responsibility Linda Kimball and 2002 Statement on Investment Responsibility Concerning Endowment Securities.

Yale University

Endowment Size FY2002: $10.4 Billion

Advisory Committee on Investor Responsibility

Yale was also one of the first Universities to formally address institutional SRI by creating the ACIR in 1972 and later, the corresponding Corporation Committee on Investor Responsibility (CCIR). Both Committees are structured nearly identical to the guidelines set forth in The Ethical Investor: Universities and Corporate Responsibility, a highly influential book authored by three Yale professors and published in 1972. Most University SRI policies today stem from the blueprint drawn out in the pioneering text.

The ACIR is composed of two students (one undergraduate and one graduate), two alumni, two faculty, and two staff members. The ACIR does research on various issues and makes recommendations to the CCIR regarding mostly proxy voting and social screening.

The only approved recommendation to screen a specific industry from the Yale portfolio was in the case of South Africa in 1978, when the University found business with the Apartheid regime incompatible with the University Mission. An intense debate arose around the issue of screening the tobacco industry with the two Committees agreeing to a strict set of tobacco proxy voting guidelines rather than social screening.

All members of the ACIR and CCIR, as well as the entire Yale community, are given access to IRRC information via the web.

The ACIR reviews and makes recommendations to the CCIR on approximately thirty social issues proxy resolutions during the year. The CCIR approves nearly 100% of all recommendations.

The ACIR holds at least two public meetings each academic year in order to promote communication between the ACIR and the University community. The public meetings are a chance for community members to address key social issues, the role of the ACIR in dealing with them, proxy voting, and proxy voting guidelines.

Yale is unique in that it releases its endowment holdings to neither the University community nor the ACIR. The ACIR receives only individual proxy resolutions with IRRC research.

Yale is unique in that it addresses its private holdings in which the management is unaffected by shareholders. If the ACIR and CCIR find their private investment managers to have committed substantial social injury, the University will contact management and, if need be, “disassociate from the offending investment.”

Committee information from telephone interview with WHOOOO, website: acir.yale.edu, and The Ethical Investor: Universities and Corporate Responsibility, by Simon, Powers, and Gunnemann in 1972.

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All University endowment information from telephone interviews, website: ipa/A0112636.html, and Lillie Ris’s report “Cross-Section of US colleges and Universities with SRI policies and Practices,” published in October of 2003.

Information regarding Board of Trustees approval rates for SRI Committee recommendations from telephone interviews and “Cross-Section of US colleges and Universities with SRI policies and Practices.”

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