Date October 9, 2024
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Brown Corporation votes to reject divestment

With a vote by its governing body to accept an advisory committee recommendation, Brown will not divest from 10 companies described in a student-led proposal as facilitating “the Israeli occupation of Palestinian Territory.”

PROVIDENCE, R.I. [Brown University] — Brown University will not divest from 10 companies described in a student-led divestment proposal as facilitating “the Israeli occupation of Palestinian Territory.”

The Corporation of Brown University voted on Tuesday, Oct. 8, to support a recommendation from Brown’s Advisory Committee on University Resources Management (ACURM) against divestment. University Chancellor Brian T. Moynihan and President Christina H. Paxson said that with a majority vote to accept ACURM’s recommendation, the Corporation — Brown’s highest governing body — stated its clear position opposing divestment, and accordingly, the University will not divest.

“In particular, Corporation members noted ACURM’s finding that Brown’s exposure to the 10 companies identified in the divestment proposal is de minimis, that Brown has no direct investments in any of the companies targeted for divestment and that any indirect exposure for Brown in these companies is so small that it could not be directly responsible for social harm, as defined in ACURM’s charge,” they wrote in an Oct. 9 letter to the Brown campus. “These findings alone are sufficient reason to support ACURM’s recommendation.”

ACURM’s analysis, which was made public alongside the Corporation’s decision, played a central role in the Corporation’s deliberations, Moynihan and Paxson said. As stated in the campus letter, the committee’s report notes that Brown has no direct investments in any of the 10 companies listed for divestment, and very small exposure in indirect investments, which are funds managed by external parties, and whose investment decisions the University does not control. Moynihan and Paxson wrote, “ACURM’s analysis shows that, based on data from June 30, 2023, Brown’s indirect investments in the 10 companies represent only 0.009% (i.e., nine-thousandths of one percent) of their aggregate market value.”

The Corporation agreed with an assessment in the ACURM report that divestment would serve as a symbolic political statement. ACURM’s report stated: “The Committee determined that this investment is de minimis and the majority believes it is too distantly removed from ‘social harm’ to thus justify divestment action. The majority believes that divestment would be a symbolic political statement, and therefore that the requirement of ‘social harm’ as defined in the ACURM Charge is not satisfied.”

Moynihan and Paxson said the Corporation also focused on the fact that divestment would have a significant impact on the ability of Brown to fulfill its mission to discover, communicate and preserve knowledge.

“Brown’s mission doesn’t encompass resolving or adjudicating global conflict…” they wrote. “Our greatest contribution to the cause of peace for which so many members of the community have advocated is to continue to educate future leaders and produce scholarship that informs and supports their work. A decision to divest would greatly jeopardize our ability to continue to make this contribution. If the Corporation were to divest, it would signal to our students and scholars that there are ‘approved’ points of view to which members of the community are expected to conform. This would be wholly inconsistent with the principles of academic freedom and free inquiry, and would undermine our mission of serving the community, the nation and the world.”

A long-standing and comprehensive process

The vote by the Corporation concludes a long-standing process Brown has followed since the 1970s, through which any member of its community can submit a divestment proposal for consideration. In July, the student-led Brown Divest Coalition submitted its divestment proposal to ACURM, which is advisory to the president while operating independently from Brown’s senior administration and Corporation. 

In a Sept. 30 report submitted to Paxson, ACURM recommended against divestment by a vote of 8 to 2, with 1 abstention. The committee’s report considered a wide range of perspectives, informed by presentations from students in support of and in opposition to divestment, thousands of written submissions from multiple parties, and numerous perspectives expressed at open sessions by members of the Brown community.

“ If the Corporation were to divest, it would signal to our students and scholars that there are ‘approved’ points of view to which members of the community are expected to conform. This would be wholly inconsistent with the principles of academic freedom and free inquiry, and would undermine our mission of serving the community, the nation and the world. ”

Brian T. Moynihan and Christina H. Paxson Brown Chancellor and President

The Corporation’s vote took place ahead of regularly scheduled meetings that take place in mid-October. Based on the strength and clarity of ACURM’s report, the strong community interest in learning ACURM’s recommendation and the Corporation’s decision as soon as possible, and the numerous discussions the Corporation has held about divestment, the Corporation held an Oct. 8 special meeting to consider the recommendation. According to the chancellor and president’s letter, Corporation members determined they were ready to vote, and did so via secret ballot so no members felt pressure to conform to a majority view. The majority of members, following careful consideration and discussion of the ACURM report, voted to support the committee’s recommendation.

The Corporation’s decision reflects the distinct fiduciary duty that its fellows and trustees have to Brown — a legal and ethical obligation to steward Brown so it can fulfill its mission now and far into the future, Moynihan and Paxson wrote. Corporation members have a responsibility to take a broad view, including considering potential legal, reputational, financial, academic and other consequences of any decision, including any impact on academic freedom. 

“They put aside their personal views and exercise their best judgment in making decisions that serve the best long-term interest of the University,” Moynihan and Paxson wrote. “The Corporation exercised that responsibility in making the determination not to divest.”

In April 2024, as part of an agreement between the University and students to peacefully end an unauthorized encampment on the College Green, the students agreed to pursue the process Brown has maintained for nearly 50 years that allows any member of the community to put forth a divestment proposal, and Paxson agreed to forward ACURM’s recommendation to the Corporation. She wrote at the time that a Corporation vote on the question of divestment would bring clarity to an issue that is of long-standing interest to many members of the University community. 

Paxson and Moynihan wrote in their Oct. 9 letter, “We believe that through the ACURM report and recommendation and the Corporation’s vote, we have achieved that clarity.” 

What’s next

“There is no doubt that open questions remain,” Moynihan and Paxson wrote. “One such question, which is closely related to issues raised in the conclusion to the ACURM report, is how the bar for divestment should be set. Specifically, given the standards set forth in the ACURM charge and today’s realities in which Brown has minimal exposure to direct investments, when, if ever would there be a decision to divest? 

“Brown’s Public Statements Policy is already clear that the University does not make institutional statements on social, political or policy matters unrelated to the University’s operations in advancing education, scholarship and discovery. Brown’s standards for divestment should be reviewed to ensure that they are aligned with this policy.”

That issue, as well as other questions raised in the conclusion of the ACURM report, will be discussed by the Corporation in the future, they noted. “But, for now, it is clear that the endowment should not and will not be used to take a stance on the contested geopolitical issues in the Middle East.”

For several years, the conflict in the Middle East has driven fervent calls for Brown to divest — and also spurred equally ardent opposition, demanding that Brown reject divestment, Moynihan and Paxson said. 

“Through many conversations and thousands of emails and letters, we have heard from members of the Brown community about the wide range of deeply held views on the divestment proposal and, more generally, on the long-running Middle East conflict and the current war in Gaza,” the Brown leaders wrote. “The escalating loss of life and violence in the region is, for many, deeply personal and reflects the lived experiences of Brunonians — Israelis and Palestinians, Muslims and Jews, and numerous others. These deep feelings and beliefs have resulted in tension and division within the Brown community.”

They said the manner in which the Brown community now reflects on this decision creates an opportunity. 

“Throughout our history, Brown as a community has been guided, even when we disagree with each other, by a deeply held campus culture characterized by mutual respect, support for each other, empathy, understanding of differences and, importantly, a willingness to engage in constructive dialogue regarding these differences. Whether you support, oppose or have no opinion on the decision of the Corporation, we hope you will do so with a commitment to sustaining, nurturing and strengthening the principles that have long been at the core of our teaching and learning community.”