Records of the Corporation, the more powerful of the University's two governing boards, show that Harvard is an investor in Texaco.

The oil giant has come under fire from national civil rights groups recently for allegedly discriminatory personnel policies and racist comments made by several top executives. Late last week, Texaco agreed to a $176.1 million settlement of the claims, the largest such settlement in American history.

The University has a policy of non-discrimination, but it is too early to tell whether the investment will become an issue for the Corporation Committee on Shareholder Responsibility.

Documentation of the investment appears in that committee's annual report, which was released last week.

Marco B. Simons '97, a student activist, said the University's investment in Texaco is a serious issue. But, he said, Harvard needs to take time to review its investment. The University should send Texaco a letter of concern--an action taken by Harvard in similar cases in the past.

"I don't think Harvard should divest at this point," Simons said. "If this is ongoing, we may feel that we should divest later on, but right now I think it's too early."

Concerns such as Simons' are usually heard by the Advisory Committee on Shareholder Responsibility, a 12-person group consisting of faculty, students and alumni.

The review process is typically triggered by a letter from students, faculty or alumni, said Harvard spokesperson Alex Huppe.

The advisory committee usually follows the letter with its own examination of the investments. Its findings are then passed on to the Corporation Committee on Shareholder Responsibility.

The advisory committee has only the power of review; it does not advise the Corporation on where Harvard should invest its money, said Brian R. Blais '97, a student representative to the advisory committee.

Earlier this year, the Corporation Committee reviewed Harvard's investment in Texaco, but for a different reason.

The company maintains operations in Burma, a country with a documented history of human rights violations.

The Corporation committee abstained on a proposal to request that Texaco terminate operations in Burma until prisoners are released and the democratically-elected government is restored to power.

But at the same time, the committee voted to ask Texaco and other companies "to review their codes of conduct for international operations," the annual report says.

There has been no action on the Texaco investment in light of last week's events. As part of its settlement, Texaco will pay $115 million to about 1,400 current and former employees and also will give black employees 10 percent raises. The company also agreed to spend $35 million on a task force to recruit black workers, monitor discrimination and develop diversity and sensitivity training.

The Corporation and advisory committee do not meet again until December. And no resolutions on investments will be considered until the advisory committee begins its regular meetings in the spring.

Harvard administrators say decisions on the University's investments take a long time because they are so complex.

"It requires very long-considered action," Huppe said. "You don't take these actions lightly, because it not only affects Harvard's endowment, but affects the large corporations in which Harvard invests and that affects millions of people.