Harvard Tied to Nine Firms Ignoring Sullivan Principles

As of June 1983, Harvard owned more than $140 million in companies operating in South Africa that have not signed or have refused to comply with the Sullivan principles. The Crimson learned yesterday.

The nine companies represent more than 25 percent of Harvard's total investment of $433 million in companies operating in South Africa.

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The Sullivan principles, formulated in 1972 by the Rev. Leon Sullivan, a member of the Board of Directors at General Motors, are a minimum set of ethical standards for companies operating in South Africa.

One hundred and nineteen of the 279 American companies that currently operate in South Africa have signed the principles. The principles require the firms to agree to work for the following.

*Nonsegregation in all eating, comfort and work facilities.

*Equal and fair employment practices

*Equal pay for equal work for all employees.

*Initiation and development of training programs for Blacks, coloreds and Asians that will prepare them for advanced-level positions.

*Increasing the number of Blacks, coloreds and Asians in supervisory positions.

*Improving the quality of employees 'lives outside the work environment in such areas as housing, schooling and health facilities in their South African locations.

Companies signing the principes are also required to answer an annual questionnaire detailing their progress on the six principles.

Arthur D. Little Company (ADL), a Cambridge consulting firm, fates the compliance of each company and publishes an annual report summarizing the data. Signatory companies pay ADL, several thousand dollars to cover the cost of producing the report. Questionnaires are audited by the signatory company's accounting firm.

Harvard however has holding in eight companies that have signed the principles and were rated in Group I--"Making Good Progress"--this year. These holdings total approximately $159 million and include such companies as IBM. Johnson & Johnson and Exxon.

The University holds $93 million in II Group II-"Making Progress"--companies, including Dow Chemicals, General Electric, Bristol-Meyers, Deere and Co and Goodyear.

Two of the nine companies that received unsatisfactory ratings have never signed the principles Harvard holds a total of $30.2 million in the two firms. Broadstreet and PepsiCo.

Three of the nine companies withdrew from the Sullivan program this year: Raytheon Baker International and A.C. Nielson. The University has $21.4, $12.4 and $5.4 million worth of each of the three companies, respectively.

General Electtric ($43.2 million) and International Telephone and Telegraph ($325,000) did not file reports this year.

The remaining two companies--American International Group and Carnation company--have signed the principles but failed to meet minimum levels of compliance established by ADL. Harvard owns $19.49 million in American International and $7.78 million in Carnation.