The Michigan Daily - michigandaily.com N ew s Wednesday, March 18, 2009 - 7A The Michigan Daily - michigandailycom INC\X7S Wednesday, March 18,2009 - 7A ENDOWMENT From Page 1A country's policies. The University of Michigan was one of the schools to divest, pulling its investments in the late 1970s. More than 20 years later, in 1999, many in the University community voiced concerns over the endow- ment's investments in tobacco manufacturing and tobacco-related companies. In response, a tempo- rary committee of faculty, staff, students and alumni, the Ad Hoc Advisory Committee on Tobacco Investments, was created to assess whether the endowment's tobacco- related investments were irreconcil- able with the University's teaching, research and service missions. The ad hoc committee ultimate- ly recommended to the Univer- sity Board of Regents to "sell all of the University's currently owned shares of stock (and not to purchase any new shares) in companies that, either themselves or through their subsidiaries, manufacture sig- nificant quantities of cigarettes or other tobacco products," the Uni- versity Record reported. Soon after, then-Chief Financial Officer Robert Kasdin instructed behalf of the University as a share- holder, can voice their opinion is through proxy voting - or voting on resolutionsintroducedbysharehold- ers on issues of concern - without having to attend actual shareholder meetings. That means the Univer- sity could still vote on issues relating to a company located in Hong Kong or Moscow using the proxy votes it receives as a shareholder. Because outside investment managers make the actual invest- ment transactions for the Univer- sity, those outside groups are the ones dealing with proxy votes for the companies in which the Univer- sity's endowment is invested. Even then, the University could still have a voice in the governance and poli- cies of these companies by instruct- ing its outside managers to vote certain ways on different issues. Rightnow,theUniversitydelegates its proxy voting authority to its out- side managers and gives them writ- ten directives on how to vote on proxy resolutions pertaining to broader issues like anti-takeover measures, preserving "one-share, one-vote" standards and dealing with proposed mergers and acquisitions. But in proxy votes concerning social and political issues, the Uni- versity instructs all of its outside Business and the School of Natural Resources and the Environment. Peterson said he believes that instituting an advisory committee makes sense from a business stand- point, because it urges companies in which the endowment is invest- ed to be more transparent about their practices, like releasing infor- mation on a company's emissions or environmental impact. An advisory committee could also signal to companies and corporation specific issues of concern to the Uni- versity, Peterson said, while also pro- viding students with the opportunity to learn about issues of shareholder responsibility and proxy voting. A number of other major colleges and universities have similar share- holder responsibility advisory com- mittees, according to data from the Sustainable Endowments Institute. Columbia University's Advisory Committee on Socially Respon- sible Investing makes proxy voting recommendations to the school's Board of Trustees and hosts an annual meeting at which the uni- versity community can express its opinions on issues concerning the committee. Harvard University has two such committees: The Corpo- ration Committee on Shareholder Responsibility and the Advisory Committee on Shareholder Respon- sibility, a committee that includes students, faculty and alumni. SUBSTANCE OR SYMBOLISM? Whether shareholder activism through proxy voting actually has any impact is unclear. As Business School Prof. Gerald Davis explained, shareholder votes are advisory, meaning a company's leadership can legally ignore the results of those votes. "To be brutally frank,"Davis said, "shareholder votes are mostly sym- bolic and have no real effect on what companies do. That and the Univer- sity is too small to be a significant shareholder in any company." Davis cited a case from the 1990s in which restaurant chain Cracker Barrel Old Country Stores Inc. insti- tuted a policy saying that it refused to employ workers "whose sexual preferences fail to demonstrate nor- mal heterosexual values." The com- pany subsequently fired multiple gay employees, according to a 2002 jour- nal article co-authoredby Davis. Despite a proxy proposal sub- mitted by one of the company's institutional investors saying Cracker Barrel Old Country Stores should prohibit discrimination on the basis of sexual orientation, the company downplayed the proposal and tried to prevent shareholders from voting on it. After multiple years of fighting over whether to hold a shareholder vote on the pro- posal, Cracker Barrel's sharehold- ers finally did, with a vast majority opposing the proposal and uphold- ing the existing policy. Davis added, however, that he believes shareholder voting can have a symbolic importance on the part of the University, and that a permanent shareholder responsibility advisory committee could be beneficial. "The final product of how (the University will) vote won't make much difference," he said, "but the process of deciding what is proper standard for corporate behavior, that could be illuminating." Morgan Simon, the executive director the Responsible Endow- ments Coalition, a nationwide network of students, faculty and alumni committed to promot- ing socially and environmentally responsible endowment investing, said she believes shareholder responsibility advisory committees can exert influence both on campus and in the boardroom. "Overall, we see that these advi- sorycommittees are win-win situa- tions for the universities protecting their investments; it's a way of put- ting money toward proactive use in society; and it helps corporations move in right direction," she said. Simon added that her organi- zation has helped to start similar advisory committees at schools like Columbia University and Amherst College, and is advising the Univer- sity of Michigan students currently advocating for an advisory commit- tee here in Ann Arbor. In addition to shareholder voting, investors are increasingly bypass- ing the shareholder voting pro- cess and exerting direct pressure on executive managers to address social, political and environmental issues and policies. Toffel, of the Harvard Business School, and Harvard BusinessSchool doctoral student Erin Reid have described in a recent working paper among other findings that sharehold- ers are successfully pushing compa- nies in which they invest to provide more information on emissions and other environmental issues without usingshareholder votes. "Some activist shareholders," they write, "have begun bypassing the formal process of shareholder resolutions, which are formally addressed to fellow shareholders and members of boards of direc- tors, by directly requesting execu- tive managers to provide more information about corporation social actions." On Thursday, University grad- uate student Peterson will be presenting the student group's pro- posal for a shareholders responsi- bility advisory committee to the Board of Regents during the "Pub- lic Comments" section at their monthly meeting. Ultimately, he said that even though numerous other colleges and universities have similar advisory committees, the value of having a similar committee at the University of Michigan is important. "I think that our goal is to really make the case for it on its merits," he said. "It's worth doing." Facing bankruptcy, GM could liquidate CEO says prolonged bankruptcy would scare away customers DETROIT (AP) - If General Motors Corp. were forced into Chapter 11 bankruptcy protection, the company would end up being liquidated because a long bank- ruptcy would scare customers away, Chief Executive Rick Wag- oner said yesterday. Speaking at a breakfast in Washington, D.C., Wagoner said restructuring the company out of court would accomplish 99 per- cent of what could be achieved in bankruptcy, but without the risk of losing customers or the huge expense of Chapter 1L Wagoner's statements came as members of President Barack Obama's auto task force told Michigan lawmakers they would signal next week what direction they plan to take to restructure GM and Chrysler LLC. Sen. Carl Levin, D-Mich., who met with members of the panel on Capitol Hill, said they would make "a significant statement" by the end of next week on the restruc- turing. Levin said it would not be definitive but would show "the direction that it needs to go." Rep. Sander Levin, D-Mich., the senator's older brother, said the task force made clear they expect to present a "framework" that would take into account the companies, their debtholders,suppliersand the United Auto Workers union. BAYDOUN From Page 1A ate a closer relationship with Uni- versity administrators. Baydoun said he plans on "meeting with the administra- tion, challenging the admin- istration, working around the administration, working with the administration and having solid plans and backup plans to really tackle these tough issues." Largely responsible for plan- ning this year's "Go Blue, Live Green" homecoming campaign, Baydoun said he would like to involve more students in activi- ties on campus - including MSA. "I envision an assembly that is mobilized and that is in touch with students, that students can really believe in and that really is able to go to bat and knows what's going on and is really able to fight for stu- dents in a way that has never been seen before on campus," he said. the University's investors to sell all stock holdings pertaining to the tobacco-related investments within the next 10 months. One of the only major divestment campaigns since then came in 2006 when a group of University students called on University officials to investigate the possibility of divest- ing from any investments with companies doing business in Israel. There was no official action on the part of the University and its inves- tors in response to this campaign. SPEAKING UP AS A SHAREHOLDER Divestment is one of the more severe forms ofshareholder activism. Indeed, there are other ways the University, as a shareholder, can speak out about how the companies in which it is invested operate and can weigh in on issues of social, ethical and even environmental responsibility as they arise within each company. One of the main ways Univer- sity officials and investors, acting on managers to not vote at all and not voice the University's position on such issues, according to a Univer- sity policy approved by the Board of Regents in December 1994. A MORE CONSCIOUS VOICE A group of University students, however, wants to change that. These students want to create a permanent University shareholder responsibility advisory committee that would evaluate proxy resolu- tions coming from companies in which the endowment is invested. The committee would then advise University officials and outside investment managers on how to vote on those resolutions.. So rather than abstaining from proxy votes involving social and political issues, the University could have much more of a voice as a shareholder. "We're not advocating for the University to file proxy resolutions, but advocating that they vote on them," said Arthur Peterson, a grad- uate student in the Ross School of MAHANTI From Page 1A 11 candidates out of the 35 they interviewed, leaving some repre- sentative positions open. "These were the 11 that were most qualified and most passion- ate for student government," he said. "And we didn't want to have anybody else that we thought might flake out or would not be effective." Mahanti said MVP is also try- ing to involve more perspectives fromstudents notinvolved in MSA in its approach to student govern- ment. MVP has been approaching students directly to ask them what their vision for MSA is, he said. "We've gotten a lot of informa- tion about where people stand on the issues, and we've kind of cul- tivated our platform around those issues," Mahanti said. "And we think that we can really deliver on them later on." In addition to being an MSA representative, Mahanti has taken part in Dance Marathon, MPow- ered, Michigan Pops and was a site leader for an Alternative Spring Break trip. STENVIG From Page 1A education to mean more acces- sible education for all students, for minority students, for immigrant students and for poor and working class students." DAAP formed in 1997 in response to the affirmative action cases that were brought against the University around the same time. The party's website cites the importance of maintaining a diverse atmosphere. "The current policies that result in the exclusion of talented minority, immigrant and poor and working class students are not only unjust, they are unviable and harmful to the advancement of society and human progress,"'the website reads. "We cannot allow so many of America's most talented youth to be excluded from our campuses and denied an education because they are black, Latina/o or poor," the website continues. "If we are to advance as a society and solve the vast problems facing human- ity. We cannot simply afford to throw away talent and potential." the michigan daily 1 & 2 Bdrm. furn. apts. 402 Hill St. & OPPEN 1313 S. State. Sept. 09. Ldry., A/C, still has h heat, free prkg. Call 734-904-6735. for Fall '0 ing bon 4 Bedroom HUGE 3 BDRM. apt. avail. in prime 816 Brook spot. 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ONE YEAR INTERNSHIP with im- migration law firm in Farmington Hills, MI. Full Time. Outstanding op- portunity for highly motivated and in- telligent U of M pre-law or pre-gradu- ate student takingda year off between undergraduate and graduate studies. Please email resume, cover letter, and transcript to cambedu@aol.com GET PAID CASH for taking online surveys. www.cashtopsend.com PRO SHOP WORKERS needed. Golf knowledge required. Stonebridge Golf Club, Ann Arbor. April through Oct. Call 734-429-8383. SCOREKEEPER'S SPORTS GRILL & Pub now hiring talented, hardworking individuals for our wait and kitchen staff, and floorman. No exp. necessary. Apply in person at 310 Maynard, Ann Arbor. 734-995-0100. SEASONAL GROUNDS CREW workers needed for Stonebridge Golf Club, Ann Arbor. April-Sept. Call 734- 323-8790. WORK ON MACKINAC Island this Summer - Make life long friends. The Island House Hotel and Ryba's Fudge Shops are looking for seasonal help in all areas: Front Desk, Bell Staff; Wait Staff, Sales Clerks, and Baristas. Hous- ing, bonus, and discounted mealsavail- able. Call Ryan 1(800)626-6304. www.theislandhouse.com For Thursday, March 19, 2009 ARIES (March 21to April 19) You might be involved in something secretive or very private today. You're working behind the scenes or doing something on your own. Whatever it is, you'll get alot done! TAURUS (April 20 to May 20) Your efforts in any kind of group dynamic today will be successful. Enjoy classes, conferences, conventions, meet- ings or even casual get-togethers. You rock! GEMINI (May 21 to June 20) Your ambition is strong today. Don't be afraid to go after what you want, because you'll probably get it. You're keen to make improvements somewhere. CANCER (June 21to July 22) Today you can come up with better ideas about travel or higher education. You're keen to explore new avenues and adventures, and now you can see a better way to do it. Yay! LEO (July 23 to Aug. 22) You want to do something to improve yourself, especially with respect to how you handle shared property, taxes, debt and a lot of red-tape stuff. In other words, you want to clean up your act. VIRGO (Aug. 23 to Sept. 22) New approaches to collaborations or partnerships with others are on your mind today. You want to improve your level of cooperation with others. And vice versa. LIBRA (Sept. 23 to Oct. 22) Your ideas about how to make improvements at work are probably excellent. Don't be afraid to suggest something. Similarly, you might improve your health today as well. SCORPIO (Oct. 23 to Nov. 21) Sports, playful activities, social diver- sions, show business and fun times with children will delight you today. You've got energy to burn, and you're looking for a better way to do things. SAGITTARIUS (Nov. 22to Dec. 21) You can accomplish a great deal at home today. Renovations, home improvements and family gatherings will be productive and certainly worth your efforts. CAPRICORN (Dec. 22to Jan. 19) Your communication skills are hot today. You can sell, market, teach, act and persuade anyone to do anything. Who could resist you? AQUARIUS (Jan. 20 to Feb. 18) Trust your moneymaking ideas. You also might have great cost-cutting sug- gestions for your family or where you work. (Let's hope others listen to you.) PISCES (Feb. 19to March 20) You're prepared to work very eagerly for your goals today. You've got the energy, motivation and follow-through necessary to do a great job. This is also a good day for physical workouts or any attempt to improve your body strength. YOU BORN TODAY You're amaz- ingly persevering, often to the point of being a perfectionist. You work hard, and you set high standards for yourself. Personally, you have much charm and grace. You have big visions, and you're confident about making them a reality. You're a hard-nosed, realistic dreamer. Your year ahead is full of fun, social activities and warm relationships. Birthdate of: Wyatt Earp, 19th-century gunfighter; James Redfield, author; Bruce Willis, actor. 0 FREE WORKSHOP. FRIDAY, March 20th, 4 to 6pm. U of M Michi- gan League Kalamazoo Room. Dream Experts share their secrets. www.TrustYourselft s "The Dream Team" gives a powerful and entertaining interview! The phone lines were jammed! Lila Lazarus FOX2 Topics include: A dream technique to overcome in-somnia & anxiety - No RX. Nightmares are good for you! 3 steps to make the right choice. Featured on A&E, E! VHL. pe r sonl A BABY IS OUR DREAM. Help fill our home with laughter and love! We are young, happily married & hoping to be parents. We care about you, please call us anytime. Toll free (877) 533-3817. Erin and Tim. 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