If you're a UF student, there's a good chance you support the formation of a committee to advise Bernie and Co. on how to invest our $1.2 billion endowment in a socially responsible manner.
In fact, based on the overwhelming passage of a resolution during last spring's Student Government elections, there's exactly an 81.5 percent chance you support it. However, if you happen to be the president of UF, a UF Board of Trustees member, the Student Body president or a student senator, the odds are a lot lower.
But what exactly is socially responsible investing? Sure it sounds nice, but is it practical?
It can be as simple as seeking out investments that are known for their environmental and social responsibility and staying away from those that aren't. It can also mean investing in our own community by providing job opportunities or proper housing right here in Gainesville, all while putting some extra coin in UF's pocket.
UF could even use its right as an owner of stock to put forth a shareholder resolution - voted on by all shareholders of a company - that asks a company to change an environmentally or socially unfriendly policy. For example, we could ask Apple Computers to stop using the environmentally harmful chemical PVC in all future iPhones.
Occasionally, socially responsible investing would mean divestment. But this would be reserved for only the most egregious circumstances, like if Columbia Pictures decided to make another "XXX" movie with Ice Cube. It would be the job of the students, faculty and alumni of the committee to decide how these tools could fit in with UF's investment strategies. Then, after extensive research, the committee would make suggestions to the Board of Trustees, suggestions which the Trustees could either adopt or ignore.
The benefits would be two-fold.
First, rather than UF's investments being shrouded in a thrice-removed body known as the UF Investment Corporation, the committee would shed some light on how the money that fuels our public university is invested. Second, it would allow UF to make a more positive impact on the world through better investments.
Sounds pretty harmless, right? Not so fast.
Despite meetings with President Machen and the Board of Trustees, members of Students for a Democratic Society - myself included - have been unable to move anyone in the administration away from their opposition to a more open investment strategy. Portfolio security and performance have been key considerations and understandably so. But the design of the committee makes security a top priority, and a recent study by the United Nations and Mercer Investment Corporation showed that socially responsible investing doesn't hurt performance.
We have also been told that due to the complex nature of UF's investments, it would be impossible to pinpoint single companies and base our strategies around them.
Instead, Machen and the Board decided to take the bare-minimum approach by adopting their own "socially responsible investment policy," which simply forbids UF from investing in 57 companies that the state of Florida has already blacklisted. This was done literally right after we were told that basing investment strategies on single companies was impossible. I know we're not top 10, Bernie, but we're not that dumb.
During the first Board of Trustees meeting with Students for a Democratic Society, Chairwoman Dianna Morgan said that these are tough times for UF, and in tough times, great organizations step up and do great things. I couldn't agree more. So please, let's step up and do something great. Let's ensure socially responsible investment at UF.
Brandon Sack is a second-year biomedical sciences graduate student. His column appears Thursdays.
