We do not entertain such high expectations of divestiture. We do not think Harvard's action alone will lead directly or immediately to the elimination of apartheid. Our realism cannot be taken as argument against divestiture, however Public conscience changes very slowly, and only by immense, relentless, cumulative effort. In our moral decision making, either individually or corporately, we cannot expect to "succeed" in a direct cause-and effect way.

If we were to insist on "getting results" from each responsible action of conscience, then who would ever write a letter to a senator.' We act in the faith and in the hope that others will join us, that we can contribute in our own small way to the arousal of the public conscience. We cannot expect--or bargain in advance to see the precise results of our commitments before we make them. We must do what we believe is right and hope that what we do will contribute to the eventual success of what we believe is right.

D. The Cost to Harvard

It almost goes without saying that sometimes "doing the right thing" is costly. It is certainly necessary to ask what the "cost" would be for Harvard were it to undertake divestiture.

We believe that there is now strong evidence that a carefully executed divestiture and reinvestment in a "clean" portfolio would "cost" the University far less than was estimated in the 1978 Advisory Committee Report.

1. Virtually all "one-time" costs could be eliminated by a policy that accorded the Corporation a sufficiently long period to sell the affected stocks it now owns. such a period might be seven years, the average length of a modern business cycle.

2. We do not believe donations to the University would be affected by anything like the $3 million estimated in 1978.

It should be noted that the only donations presently being withheld from the University are those of a large number of people who feel strongly that Harvard should divest in South Africa.

In sum, the financial cost (if any) of "doing the right thing" would not be such as to undermine Harvard's mission.

III

Harvard's policies since 1978 have been principally aimed at encouraging portfolio companies to end apartheid in the workplace and improve conditions and opportunities for the non-white employees and their families.

The record since 1978 indicates that Harvard has failed to enforce its existing policies with sufficient vigor; that the content of these policies should be expanded and strengthened; and that a regular system of monitoring and reporting the implementation of Harvard's policies should be instituted.

A. Past Implementation of Existing Policies

Harvard's efforts to implement existing policies have been inadequate. Not a single divestment has been made despite continued or intermittant Harvard ownership over several years of companies who have not demonstrated compliance with the Sullivan Principles or their equivalent. Efforts at dialogue between Harvard and portfolio companies have until this year generally been limited to written correspondence, and there has been little sustained followup when such correspondence failed to secure compliance.

B. Strengthening Existing Policies