| Divestment as a Tool to End Genocide |
Genocide and Divestment: Since the genocide in Darfur began in 2003, the world has attempted to exert pressure on the Sudanese government with minimal success. The Sudanese government relies heavily on foreign investment to fund its ongoing genocide. In addition, the Sudanese Government has shown itself to be responsive to financial pressure in the past. Given this particular confluence of factors, Darfur presents a special case in which institutions can influence the Government of Sudan by pressuring the companies that are funding the genocidal campaign to sell (“divest”) shares that they own in the companies operating in the Sudan... What is divestment? Divestment is the process of selling shares of a company in which Harvard University is invested. This tool can be used as a moral statement that Harvard does not support the actions of the company that is financially complicit in a genocidal regime. Harvard University has an endowment managed by Harvard Corporation invested in both domestic and international companies from a range of industries. Due to a United States Executive Order, no US corporations are able to invest directly in the Sudan; however, some of Harvard’s investments are in foreign corporations that are engaged in business with the Government of Sudan. These are the companies that are considered for possible divestment. Harvard’s role: Harvard University can make a statement that it will not be morally complicit in the companies’ affairs by withdrawing its funds from those companies. As a result, this action or the mere threat of divestment will encourage the companies to engage with the Government of Sudan to end the genocide or cause them to withdraw operations and significant profit margins from Khartoum. Hasn’t Harvard University already divested? Yes, over the past two years, the University has pursued ad-hoc divestment from its shares in Petrochina and Sinopec, citing in the case of Petrochina that “there is a compelling case for action in these special circumstances, in light of the terrible situation still unfolding in Darfur and the leading role played by PetroChina's parent company in the Sudanese oil industry, which is so important to the Sudanese regime.” However, a targeted model would be more a more appropriate response to the most egregious companies operating in Sudan. The model is well-researched and road-tested, with other universities and the State of California having already implemented the model. What is targeted divestment? Targeted divestment affects only companies that meet very stringent criteria; companies that (1) have a business relationship with the government of Sudan or are involved in a government-sponsored project and, (2) impart minimal benefit to Sudanese civilians, and (3) have demonstrated no substantial corporate governance policy regarding the Darfur situation and (4) fail to respond to attempts at shareholder engagement Has Harvard University ever divested this thoroughly in the past? Yes, Harvard University divested during both the South African Apartheid and from tobacco industries. In 1984, the University divested from companies that received the lowest ratings in the Sullivan Principles until the end of Apartheid, and the University divested from all companies in the tobacco industry indefinitely. For more information, visit Sudan Divestment Task Force website at www.sudandivestment.org. |
