The Board of Trustees’ Special Committee on Investment Responsibility reviewed a student proposal submitted last spring to divest from companies supporting the Israel Defense Forces. In the following letter sent to the petitioners, the committee said it chose to take no action, citing the deeply divergent views in the Stanford community and the importance of avoiding the imposition of institutional orthodoxy.
Dear Stanford Students for Justice in Palestine, Thank you for sharing your divestment petition on May 6th. We are empathetic to your deep concern for the tragic events of the past year in Gaza and Israel. They have been painful to observe and particularly distressing for those with loved ones in the region who have been living with violence and fear. We recognize the burdens that many people in our community have been carrying while also continuing their academic work. We respect your efforts to prepare the proposal you submitted amid this very challenging context.
The process
The SCIR acknowledges the significant amount of time and research required to engage with the university on these issues. We recognize and respect your following the process for the submission and consideration of divestment proposals. Likewise, we appreciate the time you have spent with university leadership, both directly and through emails or other exchanges, to discuss the process and your requests.Upon the submission of a written petition, the process calls for the Special Committee on Investment Responsibility (SCIR) to determine the appropriate approach to evaluating the petition. The SCIR received your submission, reviewed it in detail, met on several occasions to deliberate on it, discussed it with the Board of Trustees, and benefited from a wide range of interactions through student and staff engagement over the past 6 months. We have given the matter deep and thoughtful consideration.
The proposal and our response
Stanford invests its endowment to support the university’s education and research mission. The success of the endowment is crucial to Stanford’s ability to ensure that current and future generations of students and scholars equally benefit from endowed funds that support the university’s academic mission.Your petition asks for the endowment to divest certain companies. The university strives to provide a forum for the exchange of diverse perspectives among members of its community. However, as cited in the Board’s Statement on Investment Responsibility , "Just as the University does not take positions on partisan or political issues, the Trustees maintain a strong presumption against using the endowment as an instrument to advance any particular social or political agenda." It further provides that the Trustees "may choose to take no action on a request if an issue is divisive within the campus community." The Board additionally reaffirmed in a recent resolution the "avoidance of institutional orthodoxy" as a critical principle that supports Stanford’s environment of free inquiry.
As a result, the SCIR agreed to take no action on the divestment petition after discussing the matter with the Board. The events in Gaza and Israel have been a deep source of division in the Stanford community. The evidence of this division is extensive: Our campus has witnessed competing marches and protests, competing installations on White Plaza, and extensive debate in social media, campus events, and other venues. Two committees convened by the university reported on incidents of bias and harassment experienced by members of multiple campus groups representing a diversity of viewpoints on the war.
These divisions of opinion are understandable given the weight and depth of the issues involved in the conflict in Gaza. Our decision neither minimizes the importance of the issues raised by the conflict, nor condones the actions of any of the parties involved in the conflict. Rather, it recognizes the role of the university as a place focused on the creation and transmission of knowledge and where, regarding issues in the world, we seek to hear all viewpoints rather than to impose a university viewpoint.
The SCIR’s recommendation to take no action aligns with the past review and decision regarding a similar divestment proposal in 2015 that focused on certain companies doing business in Israel. At the conclusion of that process, it announced that "the Board will not be taking action on this request, nor will it consider this request further." As the Board explained at that time, "In its deliberations, the Board reflected on the fact that the Stanford community is diverse, with many groups and individuals - faculty, staff, students, and alumni - highly engaged on all sides of this issue and other important issues of our time. A diversity of viewpoints and Stanford’s commitment to open, thoughtful, and civil debate are critical to the educational mission of the university."
Related matters
Your petition requested full transparency into Stanford’s assets, including investments, donations, grants, and contracts. Maintaining the confidentiality of the endowment investment portfolio is critical to providing the financial support that advances Stanford’s mission and long-term interests. Investing the endowment is highly competitive work. The university and its external investment partners devote substantial time, effort, and resources to develop and carry out detailed investment strategies. As such, it is important not to disclose specific endowment strategies or investments in order to ensure the continued and robust financial support to Stanford’s academic mission and to avoid breaching confidentiality obligations. Accordingly, we are unable to accommodate your request for disclosure.In addition, your petition asked for the termination of "donations, grants, or contracts" associated with certain companies. We have consulted with the administration on it. In general, under Stanford’s provisions of academic freedom as articulated in the Research Policy Handbook, faculty members are free to seek support from any source for their work.
Finally, your petition makes reference to the composition of the SCIR. President Emeritus Saller previously shared with us a request from students who participated in the first encampment on White Plaza, who asked that the SCIR include elected student positions. SCIR reviewed this request and recommended that no action be taken. In reaching its recommendation, the SCIR members considered that the Trustees are the sole fiduciaries charged with long-term stewardship of the endowment to ensure that it sustains generations of students and researchers. Students are afforded other opportunities to engage with the committee and university leadership supporting this work. This may occur through the community petition process, meetings with the administration, committee members, and Office of Investment Responsibility and Stakeholder Relations, and when appropriate, representation on advisory panels established by the SCIR.
Thank you again for the time you have taken to prepare your submission and for your engagement during this process. The Board welcomes future contact through the Office of Investment Responsibility and Stakeholder Relations and the Stanford Management Company’s Stakeholder Engagement team.
Sincerely,
Special Committee on Investment Responsibility
Solomon Hsiang, Stanford Doerr School of Sustainability: solhsiang@stanford.edu
Rachel Young, University of California, Berkeley: rachel.young@berkeley.edu
Josie Garthwaite, Stanford Doerr School of Sustainability:
(650) 497-0947, josieg@stanford.edu
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