1- Script of Recording

Harvard cuts Sudan Business Tie to Protest Darfur Killings
The Boston Globe
April 6, 2005

Under mounting pressure from student activists, Harvard University plans to sell an estimated $4.4 million stake in PetroChina, an oil company owned by the Chinese government whose parent company is closely tied to the Sudanese government, which the United States has accused of waging a genocidal campaign in Darfur.

Harvard's intention is the first major victory in a growing national campaign for divestiture of business connections with Sudan. Harvard's president, Lawrence Summers, stated, "Divestment is not a step that Harvard takes lightly, but there is a compelling case for action in light of the terrible situation in Darfur and the leading role played by PetroChina's parent company in the Sudanese oil industry, which is important to the Sudanese regime."

The decision was made by the Harvard Corporation, the governing board of which Summers is a member. Public filings with the U.S. Securities and Exchange Commission indicate that Harvard Management Company owned 67,200 shares of PetroChina, worth about $4.4 million. The university's total endowment is almost $23 billion. Harvard may own additional PetroChina stocks on the Hong Kong Stock Exchange, which it would not be required to report to the Securities and Exchange Commission. Nor does it have to disclose the companies in which it is invested only indirectly, through investment funds.

Student activists reacted to the news with guarded enthusiasm because Harvard's announcement mentioned only PetroChina and did not say whether the university would divest itself of connections with other companies doing business in Sudan.The corporation's statement said concerns on campus about Darfur had prompted Summers to ask the Advisory Committee on Shareholder Responsibility to study the issue. Harvard made it clear that the decision on PetroChina did not mean the university's investments should be guided by political considerations, but said it considered the Sudan situation so outrageous that it was incumbent upon the university to act. "The university maintains a strong presumption against divesting itself of securities for reasons unrelated to investment purposes and against using divestment as a political tool or a 'weapon against injustice,"' the panel wrote, "not because there are not many worthy political causes or deeply troubling injustices in the world, but because the university is first and foremost an academic institution."

Harvard did not fully divest itself of apartheid South Africa connections despite years of controversy, including sit-ins and hunger strikes, but in 1990 the university sold its shares in companies that manufactured tobacco.

End of Recording

2- Opinion Question

For more help, click here: writing tips
collective June exam opinion questions

Opinion question (350-400 words): Explain then discuss the following statement: "Harvard made it clear that the decision on Petrochina did not mean the university's investments should be guided by political considerations".

(Your essay should include specific examples to support your arguments.)

Most Common Mistakes

1) Students failed to analyze the statement and jumped into too general "ethical" arguments against undesirable corporate behavior, without reflecting on the fact that this time it is an academic institution which has come under fire for consorting with questionable business partners through investment. In other terms, students need to use what they have learned in class as a prism through which they view unethical business practices in a new context.

2) Students waffled without relating their argumentation to concrete examples which could have been taken from the article or their (too infrequent) outside reading. Quite a few confused everything they heard, resulting in blatantly contradictory statements. A number of students seemed not to understand the article at all, avoiding any mention of it. Too many papers confused ethics with specific organizations mentioned in class, expecting to miraculously explain and discuss the statement simply by recopying it.

3) Too many students failed to use their time well, re-read and eliminate basic (unpardonable) mistakes of expression.

e.g. - using French words as if they were English (or inventing words)
- ignoring basic rules of Noun-Verb agreement, or of pronoun reference; improper use of prepositions; no linking words to signal discursive coherence
- at worst, stringing together words with absolutely no sense at all

The following essay combines the best features of two students' exam papers. Note how examples are provided to sustain argumentation and how structural phrases learnt in classes are used.

Ethical trade is becoming a controversial issue these days, as companies and investors are paying more attention to what they invest in: any unethical investment or trade practice can be detrimental to their image.
In April 2005, Harvard University announced its plans to sell its shares in Petrochina, an oil company owned by the Chinese government. This decision came after student activists criticized the role played by Petrochina's parent company in the Sudanese regime, accused by the U.S. of genocide in Darfur.

The Harvard Corporation, which handles university investments, considered that the situation in Sudan was so "outrageous" that it became necessary to act. However, Harvard's President later made it clear that this decision was to be seen as exceptional, and shouldn't be viewed as part of their investment policy. Is this really the case, or is such a policy even possible in today's world?

Since ethics have become fashionable in business, financial choices have been guided by both political and moral considerations. What you invest shapes the image others have of you. As a consequence, Harvard had to account for the companies it is linked to, and was motivated to re-work its image: how its students, government and stakeholders see this famous institution.

A prestigious U.S. university like Harvard manages billions of dollars in investments, and so functions like a financial institution. As such, it needs to focus more on financially satisfying investments than on moral issues. Should one start choosing partners according to political views, this might generate instability and mistrust on the investment market.

On the other hand, sticking to respectable investments is a must for Harvard, because of their role in shaping tomorrow's intellectual elite, and setting a good example of behavior has to be a top priority if they are to remain fair and balanced in their teaching. When it comes to war though, or a genocidal campaign, it's hard not to be biased - which is perhaps why political neutrality was a secondary consideration here.

Nevertheless, Harvard can go on investing on the Hong Kong market without reporting it, so without the fear of public pressure from students or other watchdog organizations. This strategy allows them to invest where they want, yet maintain a morally satisfying image - this may reassure business partners, but with new means of intrusion by the media, it may become harder for the university to play this double game.

(400 words)

Some Advice:

1) After reading the opinion question statement, the first thing to do is to rally one’s knowledge of ethical issues and who they concern (the problem of stakeholders was extensively discussed in class), then simply reflect on what is meant by the statement, and who it was aimed at.

2) Before writing, it is essential to sketch out a rough outline of argumentation. Take the time to decide what you wish to say first, and only then start writing. Students are strongly advised to think first, write second - and not the other way round.

3) Exam papers are directly linked to what is discussed in classes. Keep up with them and show you attended them in an active way.

4) Often, attempts to integrate information from the listening were made by quoting passages word for word (especially repeating the subject statement), often without using so much as ‘according to’ or quotation marks. This is not an acceptable form of writing on an opinion question. The sense of what is reformulation and what is outright plagiarism should be taken more seriously.

created by: Steven Schaefer

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Harvard cuts Sudan Business Tie to Protest Darfur Killings

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Harvard cuts Sudan Business Tie to Protest Darfur Killings