Corporations Respond to the Regents' Resolution
University of Michigan students protest at a Board of Regents meeting, March 14, 1979.
After the University of Michigan Board of Regents passed the March 16, 1978 resolution, making the Sullivan Principles the guidelines for University investments, UM began asking banks and companies about their activities in South Africa and their compliance with the Principles. Copies of their letters were maintained by U of M's Investment Office and the WCCAA. The letters, some of which are displayed below, contained a wide variety of responses and showed some of the challenges in enforcing the Regents' resolution.
General Motors, an original signer of the Principles, reported it "strongly opposes" apartheid and had programs for the well-being of its South African employees.
Dow Chemical Company said it was "taking a much broader view than is contained in the Sullivan Principles."
Polaroid Corporation had already withdrawn its business from South Africa.
Traverse City State Bank had no South African loans but was highly critical of the Regents and UM's student-activists.
Exxon Corporation supported the Principles and felt they did more good by staying in South Africa.
Owens-Corning Fiberglas Corporation reported they were only a minority shareholder in their South African affiliate so they had no way to enforce the Principles.
Irving Trust Company had a "policy to make no loans to South Africa."
Bank of America felt the "apartheid system is loathsome" but could not answer the Regents' request because they were not sure what UM would consider to be proof of compliance.
Firestone endorsed the Sullivan Principles but "do not feel it is proper for us to become involved in the domestic politics of any of the 27 countries in which we operate."
INA Corporation signed the Sullivan Principles. They reported having 42 South African employees, 7 of which were non-white.
Bankers Trust Company said South Africa was "an extremely small percentage" of their loan portfolio but their "policy of maintaining banker/client confidentiality" prevented them from sharing more details.
General Foods Corporation was "sympathetic with the Statement of Principles" but reported they were unable to exert enough influence on the South African firms that made their products to get them to follow the Principles.
Weyerhaeuser Company said they no longer operated in South Africa.
Republic National Bank of Dallas promised they "will not increase [their] loans to the Government of South Africa."
Square D Company reported their "operation in South Africa is insignificant."
First National Bank in Dallas had "no published policy" on South Africa but they felt it was "not appropriate to discuss specific aspects of [their] lending and investment programs."