Overseers Address Proxy Votes

Following an announcement that the value of Harvard's South Africa-related investments had risen about 20 percent, a few members of the Board of Overseers had questions about Harvard's proxy votes in companies with ties to South Africa at yesterday's regular overseers meeting.

A report released last week indicated that the market value of the University's South Africa-related stocks rose by about $30 million during the second half of 1989. The report, written by the Corporation Committee on Shareholder Responsibility (CCSR), said the investments grew from $138.9 million last June to $168.6 million in December.

Although Harvard's role as a share-holder was not included in the official agenda for yesterday's meeting, several overseers briefly addressed the issue, board members said yesterday. Overseer Peter H. Wood '64 said he and a handful of his colleagues questioned whether the CCSR was following the non-binding recommendations of its advisory committee.

The CCSR votes on proxy resolutions for companies in which Harvard owns stock, and Harvard policy mandates that the proxy votes follow the Sullivan Principles, a set of labor criteria for businesses involved in South Africa.

While Wood said he was not concerned about the change in Harvard's investments, he said he did have doubts about the CCSR's adherence to the Sullivan principles in proxy votes on South Africa-related holdings.

"It's still not clear to some of us that this is being handled in a way the Board has agreed upon," he said. "What strikes me is that there is considerable disagreement between the CCSR and the advisory committee in many instances that relate to South Africa."

Most overseers, however, did not express doubts about the CCSR's compliance withHarvard policy.

"I think they're pursuing a policy that's beenannounced, and that's what we want to see," saidOverseer Arthur A. Hartman '47.

Yesterday's overseer meetings also included thetraditional report by President Derek C. Bok.

According to Overseer Bernadine P. Healy, Bokdiscussed Harvard's role in helping nascentdemocracies develop their economic and politicalleadership, a subject he had raised at the lastmeeting in reference to Eastern Europe.

In addition, Bok said he is looking toestablish a research center specifically devotedto the study of environmental issues, according toHealy