Office of the Assemblies

Dear Gabe,

Thank you for transmitting UA Resolution #19, “Affirming Cornell's Commitment to Ethical Investments and Financial Transparency."

Several of the proposals advanced in this resolution involve the UA Budget Planning Committee, and thus are predicated on the re-establishment of this body. In my response to UA Resolution #9, I suggested that the UA Executive Committee (or other representatives selected by the UA) meet with university leaders early in the fall semester to explore possibilities for more structured communication about university budget issues, one of which could be the re-establishment of the UA Budget Planning Committee.

If, in these discussions, the UA and the representatives of the administration agree that it is appropriate to re-establish this committee, then I expect the scope of that committee’s role would also be delineated at that time, and that delineation would include the items in Resolution #19.

With respect to the resolution’s final resolved clause that seeks to “prevent the university from investing in exploitative creditor relationships,” the university’s primary purpose is to further the education of its students, and the general public, through teaching, research and engagement, and its investment policies focus on developing financial support for these ends. The university is not primarily an agent to direct social or political action, but a neutral forum for analysis, debate, and the search for truth. Cornell does accept some responsibility for the political and social implications of the activity of companies in its investment portfolio in cases where an extraordinary social evil is apparent and a broad consensus has developed within the university community regarding the moral shortcomings of a particular firm or type of investment. The Board of Trustees, which has responsibility for the portfolio, will consider action when a company’s actions or inactions are morally reprehensible and when (a) the divestment will likely have a meaningful impact toward correcting the specified harm and will not result in disproportionate offsetting societal consequences or (b) the company contributes to harm so grave that it would be inconsistent with the goals and principles of the university. All investments, including ones that involve distressed debt, are already subject to these guidelines.

Thank you again for your involvement and for your concern for the welfare of Cornell’s investments.

Sincerely,

Martha E. Pollack

President, Cornell University

300 Day Hall

Ithaca, NY 14853

Tel: 607-255-5201

www.cornell.edu