As part of the continued evaluation of the University's investment in tobacco stocks, a committee of students, administrators, alumni and faculty will be formed to look at and recommend appropriate actions on the issue.
"The purpose of the committee is to study whether the ownership of tobacco stocks in the investment portfolio is antithetical to the University's values," University Chief Financial Officer Robert Kasdin said.
Two years ago, the Senate Advisory Committee on University Affairs began to address the University's role in tobacco investments.
In October 1997, the Senate Assembly passed a resolution calling on the University to withdraw its investments in tobacco stocks.
The Michigan Student Assembly also passed a resolution in January supporting tobacco divestment.
SACUA members plan to hold a symposium on the issue in April to educate the University community on the complex issue.
"SACUA has played an important role in this issue," Kasdin said.
The University currently has about $25 million of funds invested in tobacco stocks.
Kasdin said the University Board of Regents has the final decision on whether to divest its tobacco stocks.
Although many on campus support tobacco divestment, Kasdin said the decision will not be influenced by those who have strong feelings against smoking or the tobacco industry.
Kasdin said the members of the new committee have not been selected yet.
MSA Rep. Sumeet Karnik, an LSA junior, said he was happy with the plans to form the University committee. "It's a step in the right direction," he said.
Karnik said regental bylaws passed in 1978-79 require a committee of students, alumni, faculty and administrators to address divestment issues, and stressed that students are very important in the process.
"There is no doubt students have to be involved - we're a main part of campus," he said.
The tobacco divestment talks are similar to those held in the late '70s, when the University considered withdrawing investments in companies conducting business in South Africa, which at that time was under the Apartheid system.
The developments in the '70s were very important to the University, Karnik said, because they "set up a plan of action addressing future issues."
The assembly's recent resolution was based in part upon the original bylaws of two decades ago, he added.
Karnik said the committee "would discuss this issue and make a recommendation to the regents."
"This is what we wanted," he said.
03-24-99
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