Proposal to Create an Advisory Committee on Socially Responsible Investing I.

Preamble In his inaugural address, President Crow explained the role of ASU as a New American University. President Crow states that in addition to benefiting the state of Arizona, "...there is a much broader social obligation that must be met. As members of an academic community, I believe we must share our expertise globally to help alleviate the host of problems that beset our increasingly complex world." As an New American University, we, the members of the ASU Coalition for Human Rights, believe that Arizona State University should use its influence on a state, national, and even international level to fulfill this "social obligation." As the largest university in the United States, Arizona State University sets an important example with its policies regarding academic research, interdisciplinary collaboration, and human rights. Yet, despite its standing as a leading research university, ASU lags behind other universities on its commitments to social responsibility. Over the past thirty years, other colleges and universities in the US have been establishing committees to evaluate the impact of their financial investments on issues of human rights and social responsibility. Moreover, the ASU Foundation describes itself in its mission statement as an engine for positive change that, through philanthropic investment, will measurably affect societys pressing issues." Because an investment is an implicit representation of a university's values, ASU has the potential to uphold its "social obligation" by establishing a committee to ensure that ASU's investments, which to date exceed $645 million, are socially responsible. Thus, believing that actions speak louder than words, the ASU Coalition for Human Rights calls on ASU to establish an Advisory Committee on Socially Responsible Investing (ACSRI) to investigate the impact of ASU's investments on local and global issues of human rights. In the words of President Crow, to be a New American University, "We must integrate the advancement of knowledge with the transformation of society." II. Committee Structure To ensure that the Advisory Committee on Socially Responsible Investing (ACSRI) is representative of the Arizona State University, its thirteen voting members will be drawn from students, faculty, and members of the Phoenix community from a variety of disciplines. Ideally, over time, membership will provide balanced representation of the schools and divisions of the university. A. The voting members of the committee shall consist of: i. Four faculty members, deemed by students and peers as experts in the fields of human rights and social responsibility. ii. Four undergraduate or graduate students, representing the diversity of perspective of ASU students.

iii. Four alumni of Arizona State University, who are interested in promoting human rights and social responsibility through ASUs investment policies. iv. One community member who is recognized for his or her work in the field of human rights and social responsibility in the Phoenix area. B. The nonvoting members of the committee shall consist of: i. At least one member of the ASU Foundation, responsible for providing information and a channel of information between the Committee on Socially Responsible Investing and ASU's investors. ii. Another member of the university administration, if necessary for logistical support. iii. A paid student worker, who will research issues of socially responsible investing at ASU for the committee. C. Election of committee members: i. The faculty members shall be elected by the ASU Faculty Senate. ii. The four students must be elected by popular vote, alongside Undergraduate Student Government elections. iii. The alumni must be elected by the ASU alumni association. iv. The community member must be selected a) from a local human rights organization and must b) be recognized in his or her field for their excellence in social service. The community member shall apply directly to the Advisory Committee for Socially Responsible Investing and will be selected after a transparent interview process. v. An individual is not eligible to serve on the committee if there is a conflict of interest whereby that individual's personal, professional, or financial well being could be affected by the decisions rendered by the committee. D. Term length: Each SRI committee member will serve for one year, but may be reelected by the established voting mechanisms. E. Passage of non-binding resolutions and recommendations to the ASU Foundation and the Arizona Board of Regents shall be made by a simple majority of five voting committee members. F. The chair of the committee shall be appointed by an internal committee vote. The duties of the chair are to set meeting agendas, moderate meetings, and ensure that meetings occur on a regular and timely basis.

III. Duties of the Committee A. The committee shall ensure that ASU institutes a socially responsible investment policy. This policy includes, but is not limited to: i. Requesting investment managers to encourage good behavior from the companies it invests in, and to discourage poor behavior by the screening of investments, taking into consideration the following list of criteria (which are by no means exhaustive): -a company's promotion of human rights, including but not limited to promoting the equality of gender, race, ethnicity, religious preference, and sexual orientation -promotion of good business ethics and employment practices -promotion of international cooperation and commitment to a reduction of international conflict -protection of the global environment, its climate, and biodiversity -sustainable procurement of essential resources -protection of animal rights ii. The prohibition of investments in companies if the behavior of these companies is inconsistent with ASU's educational, philanthropic, and social goals iii. The prohibition of investments in companies that fail to uphold principles of social justice. This would include (but is not limited to) companies that: -commit human rights abuses -knowingly provide resources to those who will commit human rights abuses -manufacture weapons of torture -fail to uphold basic labor rights (including the right to form a union) -fail to uphold principles of environmental justice -give vocal, economic, or political support to a regime that infringes upon human rights, enabling it to commit human rights abuse B. The committee shall make recommendations in regards to shareholder proxy voting, sponsoring shareholder resolutions, and contracts so that ASU uses its shareholder votes and financial capital to create positive social change. C. The committee shall make yearly reports to ASU Council of Presidents, ASU Foundation and the Arizona Board of Regents about SRI proposals considered, an assessment of ASU's current investment under the guidelines of socially responsible investing, and recommendations for divestment, if necessary. D. The committee shall also vote on non-binding issue specific resolutions, so as to provide the most up to date information to the ASU Foundation, the Arizona Board of Regents, and the ASU community about how to promote socially responsible investing. E. The committee shall serve as a conduit of investment information to the ASU community.

IV. Meetings A. Community forums: The ASU Advisory Committee on Socially Responsible Investing shall have a community forum at least once a semester during the fall and spring semesters, where ASU students, faculty, and alumni can present issues and raise awareness regarding ASU investments. B. General meetings: The committee shall meet at least three times a semester (not including community forums) to discuss socially responsible investment policies at ASU. Two-thirds of the committee members must be present at a meeting to pass a ACSRI resolution. C. Emergency meetings: The committee may call emergency meetings in order to respond to pressing issues of human rights and social responsibility with the approval of 2/3 of the committee board. D. The committee shall meet once a year with the CFO and other members of the ASU Foundation and the Arizona Board of Regents to inform the board of student proposals, committee recommendations and an assessment of ASU's investment in light of these human rights standards. V. Information for the Committee A. To inform itself on issues of socially responsible investing, the committee may hear presentations from faculty experts and activists during general meetings. B. Coordination with the University and ASU Foundation: i. Since the committee will need to be well-informed about ASU's endowments, the committee shall have the most up to date information about ASU's investment portfolio. ii. ASU will support the committee's information needs regarding issues of socially responsible investing by providing the committee with subscriptions to monitoring services of respected research organizations such as the Investor Responsibility Research Center (IRRC). iii. In regards to proxy voting, the relationship between the ASU Foundation and the committee must be carefully coordinated, given the relatively short time to respond to proxy proposals. VI. Transparency A. The committee's annual reports and resolutions shall be made available to the ASU community online. B. The University will prepare and make available quarterly a list of domestically held stocks and bonds. Once annually, after its annual report, ASU will make available a list of both

domestic and foreign holdings. ASU faculty, staff, students, and alumni will have access to the quarterly and annual lists.