Tainted Money: The Ethics and Rhetoric of Divestment
Part 2 of 2
My conclusion is simpler
about corporations than it was about the universities, although perhaps not
easier to defend: Corporations should keep their relationships with colleges and
universities in long-term perspective. Those who would applaud an end to
corporate philanthropic support of Harvard include (a) some who hate Harvard and
(b) some who hate Exxon (apart from those who hate them both for being rich and
powerful). There are also those who believe that philanthropy should be doled
out only to ideological allies and the well-behaved, and those who believe that
corporate philanthropy corrupts the university.
The relationship between
business and higher education has served the private interests of both and the
public interest as well. There are times when each party tries to take advantage
of the other. On the average, however, it has been a valuable and constructive
relationship, which is one of the reasons I was so disappointed with Harvard in
this case.
What is "Harvard," after
all? On the divestment issue I draw on two sources: Roderick M. MacDougall,
Harvard's treasurer and chairman of the Corporate Committee on Social
Responsibility (he shared with me the letter I've quoted earlier) and one of the
most thoughtful and persuasive writers on the South Africa divestment effort,
Derek Bok (his two open letters to his Harvard colleagues are masterful). The
problem is that he failed to win the argument. I agree with Bok and disagree
with MacDougall, and infer that they disagree with each other. It seems certain
that there is deeply divided opinion on the issue at Harvard, especially in the
faculty. (Was it Mary McCarthy who once defined a faculty member as "someone who
thinks to the contrary"?) Various forces are always at work trying to tie
"Harvard" down to one moral or political position or another, and the consensus,
if reached, is fragile at best.
Exxon, however, is by
definition (at least to this point in time) a much more closed and disciplined
organization. It doesn't encourage free-wheeling internal debate on such matters
throughout its executive ranks, but assigns problems to specific people for
analysis and recommendation. Although the process is more orderly than in
universities, it doesn't mean that those charged with the responsibility of
dealing with corporate controversies of this kind don't talk and fret and
analyze them to death. Responsibility is especially burdensome when one is
expected to be wise as well as smart.
Exxon certainly does not see
itself as bearing the burden of moral spokesman for society. It gladly leaves
that role to others. At the same time, an Exxon is not the amoral, greed-driven
monster its critics make it out to be. An Exxon reflects the morality of its
society and—voluntarily or under duress—accepts it. It is on such grounds that
companies like Exxon have developed over the years "philosophies" of corporate
social responsibility. They have gradually modified and broadened their
perspective to include " communities of principle" as well as "communities of
interest" (Henry Shue, Basic Rights,
Subsistence, Affluence, and U.S. Foreign Policy, 1980).
It is within the young
tradition of corporate social responsibility—say, since the 1920s—that leading
corporations like Exxon accepted the Sullivan Principles. In Exxon's case, there
was little business interest in South Africa, but it provided philanthropic
support to help blacks in South Africa. It also played a leading role in the
South African Exchange Program of
the Institute of International Education. Morality—called "enlightened
self-interest" to make it more palatable—has infected the economic values of
business corporations, too.
The fundamental difference
is that Exxon had direct moral as well as economic commitments in South Africa,
and Harvard doesn't. There are no risks to the lives of Harvard's employees in
South Africa, but there were to Exxon's.
In spite of divestment,
Exxon should deal with Harvard in the same way it always has. It should continue
to make grants and to provide other kinds of support on the merits. But the
matter shouldn't be left there. Somehow, the Harvards and the Exxons should
better understand how their conflicts or cooperation affect the public interest.
That is unlikely to happen in the sometimes hysterical arena of campus
discourse; it might happen behind the closed doors of corporate offices, where
critics are too seldom made welcome.
The divestment issue raises
a number of vexing problems that only true believers wish to ignore. Divestment
raises the question of "tainted money," for example. Although Harvard would like
to put the blame on the South African government's policies in this case and let
the oil companies merely be the victim rather than the culprit, the fact is that
the oil companies may have been engaged in a business activity that Harvard
found morally objectionable in its consequences. It might be all right for them, Harvard implied, but we have no
reason to be a party to such behavior. The implication, if it holds, is that the
oil companies, were they only more committed to morality and less committed to
their profits, would not have to be tainted by the stain of helping apartheid
inadvertently.
The term "tainted money" was
coined in 1895 by a Congregational minister named Washington Gladden, an active
figure in the Social Gospel movement of the time. In 1905 he led an attack on
the mission arm of his denomination for accepting a gift of $100,000 from John
D. Rockefeller. His language echoes over the decades: "The church which accepts
the Standard Oil Company as its yokefellow can hardly hope to keep the respect
of right-minded young men and women." Gladden offered this motion:
. . . that the officers of this board should neither
invite nor solicit donations to its funds from persons whose gains have been
made by methods morally reprehensible or socially injurious.[4]
If to be morally serious
means accepting the consequences of one's actions and beliefs, then those who
hold such views must side with Reverend Gladden. Gladden argued with easy
optimism that other good Christians would come forward and provide the $100,000
if the mission board would return Rockefeller's check. The sticky part is that
that often does not happen. Those who seek purity in the sources of funds also
run the risk that those they set out to help won't get that help. For Reverend
Gladden, to be morally pure (as well as morally serious) meant that he must risk
denying the Christian message to those in need of it. His moral posture was
perhaps more important to him than his commitment to religious mission.
Episcopal Bishop Paul Moore,
Jr., a contemporary Washington Gladden, was recently part of a delegation to
South Africa. He met with business executives, blacks in townships, and
political leaders. He was near a bomb explosion. He heard, from President
Kenneth Kaunda of Zambia, "his deep fear that if South Africa were to explode,
all of South Africa would be engulfed and hundreds of thousands would be
killed." Even so, Bishop Moore concludes in a newsletter article for the
Cathedral of St. John the Divine in New York City that such an outcome is
bearable, even supportable:
It may take a long time, more pain, but the people
are willing to suffer almost anything in order to attain freedom. You could feel
that. It was unmistakable and, in a way, deeper than anything I saw or heard
during my visit. It was faith, pure faith.[5]
It may be the faith of black South Africans, but it
is also their blood; the Bishop's
faith, perhaps, but not his blood.
Nor is it Harvard's. It could have been Exxon's, because Exxon people were
there. Nor is the blood that might be spilled that of the "anti-apartheid
students" at the University of Virginia.
Nor is it mine.
The moral dilemma of those
who seek to do good is that they may instead do harm—in this case, terrible,
irreparable harm. Is it more damnable to risk other people's lives by
encouraging a more violent course than it is to permit continuing
oppression?
I should make my position
clear: I believe that it is not in the best interest of black and colored South
Africans (or white South Africans, either) that leading American business
corporations leave that country. Disinvestment is certain to be followed by a
steady deterioration of business practice. For all their faults, the best
American business corporations—and I include my former employer in that
category—make serious efforts to be socially responsible. Their failures are
probably no more frequent or serious than those of great universities.
To pose another question:
What is the proper relationship between donors and donees on social questions
like this? If a university comes to a different conclusion from a corporation on
the best strategy to help South Africa become a civilized nation, should that
break the relationship? The divestment "movement" has pushed moderates like
myself to the limit. Others have quickly gone beyond that: "Anyone who won't own
my stock doesn't deserve my support," they might argue. "If you won't accept the
consequences of your actions, I will."
In the Harvard-Exxon case,
so much weight was put on one aspect of Exxon's business activities in South
Africa that it outweighed all other considerations. That is questionable in
itself; it quickly brings to mind as well the thought that later on, on another
issue, Harvard might also decide to ask for purity of result as well as nobility
of intention. As Murray Kempton pointed out (in a telling review of a book that
seeks to "rate America's corporate conscience,") "the more delicate the
calibrations, the worse the confusions in the measurement of conscience."
There are further
implications in the South Africa case. A recent initiative would ban investment
of public funds in companies doing business in Northern Ireland. Jesse Jackson
recently added Argentina, Chile, and Peru to his list. Whose list should we use?
How long must it be?
Divestment has a further
consequence, familiar to those fortunate enough to have read Albert 0.
Hirschman's Exit, Voice and Loyalty
(Harvard, 1970). As long as you own stock, you have voice; when you sell
your stock you exit your relationship and you lose your right to speak. (A
Virginia faculty member argued that the university should keep its investments
and use its shareholder position to press for disinvestment. The strategy makes
sense even if you disagree—as I do—with American business withdrawal from South
Africa.)
Whether universities should
take positions on issues such as South Africa, either rhetorically or
financially, can best be answered by voices from two of my favorite
universities. The first is that of Derek Bok:
At bottom, this is also a dispute about the nature of
the University itself and the ways in which it should and should not respond to
evil in the outside world.... Much as I oppose apartheid, I strongly believe
that universities should not use their power to press their political and
economic views on other organizations and individuals beyond the campus.[6]
That was written in 1984. In
1967, in an even more highly charged environment, a committee of the University
of Chicago issued a "Report on the University's Role in Political and Social
Action":
The instrument of dissent and criticism is the
individual faculty member or the individual student. The university is the home
and sponsor of critics; it is not itself the critic.... In the exceptional
instance, these corporate activities of the university may appear so
incompatible with paramount social values as to require careful assessment of
the consequences. These extraordinary instances apart, there emerges, as we see
it, a heavy presumption against taking collective action or expressing opinions
on the political and social issues of the day, or modifying its corporate
activities to foster social or political values, however compelling or appealing
they might be.[7]
In addition to the moral commitment to protect
academic freedom, there is a self-interested reason to hold such views.
Intruding in the affairs of others exposes one to retaliatory intrusion in one's
own affairs. Is a symbolic action (especially one of dubious effectiveness)
worth such risk? How often should one take the risk? What makes an instance
extraordinary, exceptional?
In any event, there are
other options open to anti-apartheid activists. Universities provide space and
often financial and logistical support to a wide range of political
organizations. Why is it necessary to force the university as an institution
into an extreme and awkward position on the South African issue?
My own opinion is that the
divestment "movement" has not been much of a campus movement at all. It is very
narrowly based and commands token and largely uninformed support. The tactics of
many divestment advocates have obscured the issues and made it difficult if not
impossible for the uncommitted to sort out their ideas and come to reasonable
conclusions. The discourse of pro-shanty and anti-shanty should perhaps be
dismissed as the moral equivalent of panty raids. Even a good cause should not
become a convenient excuse for intimidation.
The first purpose of a
college education, the historian Karl Weintraub once said, is to learn to
understand the complexity of things. If that purpose is loosened by slipshod
argument or undermined by coercion, or if it loses place to moral fervor or
political ideology, the central mission of the university will be fatally
compromised.
Lift the rock of apartheid
and you will not find respect for complexity. Those slugs and grubs are blind to
it. They see only Truth. The moral life is for them, because it is so simple.
They have smothered the spirit of liberty, or perhaps never breathed its air.
The moral life is never hard for true believers. But it certainly is for the
rest of us.
Where does all this leave
"the rest of us?" Given the intellectual complexity of the issues, the moral
urgency of a situation steadily becoming more ominous, the pressing need to keep
our wits about us, how should we proceed? The divestment effort may have
succeeded in so undermining the U.S. business presence in South Africa that we
have already lost the constructive influence symbolized by the Sullivan
Principles. Xerox has now left, in a decision that its chairman says pleases no
one. Eastman Kodak, which tried to keep its products out of South Africa, finds
that it couldn't achieve that without going out of business everywhere. Economic
pressures seem not to have worked in South Africa, although it is possible that
they have permanently changed—damaged, in my view—the relationship of for-profit
and not-for-profit organizations in the United States. A college trustee who
worked for ten years to persuade his college to divest feels mildly triumphant.
He believes his efforts have been a positive contribution to reform in South
Africa. Colleges using their economic power to urge their moral convictions on
society is, in his view, smart politics. What else, he might ask, can a college
do? What else can American college students do? If they can't use their pressure
on trustees to divest, what can they do? The situation in South Africa is one of
those exceptional, extraordinary instances the people at Chicago were talking
about, isn't it?
Where do we turn for help?
Harold Macmillan once said that the purpose of an education is to prepare one to
know when someone else is talking rot. The literature of higher education is
filled these days with appeals to improve thinking skills," to develop "critical
thinking." In another time there was a different word for it: casuistry.
Casuistry according to one theological dictionary, is "the application of moral
principles to particular situations or to individual circumstances." In another
theological dictionary "it refers to any form of argument, usually about moral
or legal issues, that employs subtle distinctions and twisted logic in order to
justify some act that would generally be considered disreputable." This
delightful short essay actually argues in favor of resuscitating casuistry at
its best, "the attempt to formulate expert opinion about the existence and
stringency of moral obligations in typical situations where some general precept
would seem to require interpretation due to circumstances."
The controversy over the
right of Reverend Charles Curran to teach theology at Catholic University offers
another illustration. Curran argues for precisely the kind of careful, fair,
open discourse that I do. If a recent lecture at the University of Virginia is
any indication, he tries very hard not to let himself be swept up as a folk
hero. He does not want to abandon his commitment to discourse in order to
offset the organizational power of his Vatican critics. Curran believes that the
church has a moral responsibility to influence political and economic issues.
The set of issues he addresses is as thorny and complex and painful as South
Africa. Yet, in peaking of abortion, Curran deplores "single-issue politics,"
the reduction of complexity to simplicity.
Divestment is single-issue
politics. A relationship based on the broad economic and social performance of a
company is reduced to a single aspect of its activities in a single country. The
position seems to me exactly analogous to that of the pro-life opponents of
abortion. The congressman is told that all of his votes on other issues don't
equal his one vote on this one. This matter is so important that all other
matters must yield to it.
Single-issue advocacy has the ring of passion to it,
the moral voice that in the church is called prophetic. (To borrow a perceptive
remark, a prophet is someone to admire but not someone you'd want to work for.)
Prophets are critics of society, and many people now believe that the central
mission of the university is to be a critic of society. The collective voice of
the institution is louder and more intimidating than the voice of a single
protestor or a handful. Divestment advocates add leverage to their case by
enlisting the university as an institutional investor, which amplifies its
leverage by bringing pressure on the corporation. The hope is that the leverage
becomes so great that it causes the South African government to change its
policies.
But, it is argued, the
passion of the prophet is needed when human beings are degraded as they are in
South Africa. We must transmute that passion into political power. That's what
prophecy is all about. That's what the social mission of the university is all
about.
In a world of prophets,
which one to follow? Isn't that the question? How does one choose between Jerry
Falwell and Bishop Moore, between Washington Gladden and John D. Rockefeller,
between Archbishop Tutu and Helen Susman? If it is on the basis of "faith, pure
faith," as Bishop Moore would have it, then choice may be even more difficult.
In the university, modern tradition has it, the difficulty of discriminating
between good thought and bad is so demanding that the quality of thought itself
claims primacy.
Universities, I conclude,
must turn from prophets to moral philosophers. Moral philosophers must turn from
talking to one another to talking to—even occasionally listening to—the rest of
us.
[4]
Washington Gladden, "Tainted Money," in The New Idolatry, McClure Phillips,
1905.
[5] Paul
Moore, Jr., "Danger and Hope: Images of South Africa," from the newsletter of
the Cathedral of St. John the Divine, New York, n.d., p. 6.
[6] Derek
Bok, op. cit., p. 254.
[7]
University of Chicago, "Report on the University's Role in Political and Social
Action," Minerva, op. cit., pp.
277-278. |