Last Thursday, the AU community received an update from President Neil Kerwin regarding goal No. 7 of AU’s Strategic Plan: the “Statement of Social Responsibility Principles for American University Business Partners.”
While it’s admirable that the University is taking steps toward social responsibility in its business practices, to truly commit to its “steadfast sense of ethics and vigorous commitment to the city and the people of Washington, D.C.,” the University needs to address its own investment practices as well.
AU can prove its commitment to social responsibility by disclosing where its endowment is invested.
How do we know our investments abide by our stated values of “honesty, integrity, trustworthiness and respect for the unique intrinsic value of each human being” if we don’t know what those investments are?
Disclosing this information and allowing stakeholders in the AU community to have a say in where the University’s money is invested would go a long way in making sure we actually put our money where our mouth is.
Similarly, investing some of the endowment in community development financial institutions is a critical step in proving our commitment to Washington, D.C. and its residents.
Community investment is a growing nationwide among both individuals and institutions, working toward sustainable economic development of underserved communities. CDFIs offer the same protections and benefits that other banks do, plus they play a major role in promoting small-business growth, affordable housing and increased community services by giving loans to those who might be turned away from the big banks.
Investing in a CDFI would help prove the University’s commitment to the larger D.C. community.
Overall, I am pleased about the steps that American University is making in commitment to socially responsible business practices, but I encourage the University to hold itself to the same standards as its business partners and invest our endowment in compliance with our own social, ethical and environmental standards.
Mary Donoghue CAS, Class of 2012
