President’s speeches, letters, and articles
Subject: Update from the Reed Investment Committee on Proposed Divestment
December 20, 2024
Dear Reed Community,
I am writing on behalf of the Reed College Board of Trustees to inform you about a recent decision made by the Board of Trustees Investment Committee. On September 15, 2024, the college received an email regarding divestment from holdings in a variety of companies that may or may not have significant operations in Israel. Reed policy requires such requests, when directed in writing to the treasurer of the college, be forwarded to the investment committee for a decision.
Reed policy entrusts decisions regarding the college’s investments solely to the investment committee. The investment committee has decided not to proceed with divestment. Their statement is below.
We recognize this will be disappointing to those who advocated for divestment, and we respect the importance and sincerity of their call. We encourage continued conversations about global justice, responsibility, academic freedom, and the ways in which the Reed community can foster awareness and knowledge. We are committed to supporting our community in exploring, discussing, and debating these and other important issues.
Sincerely,
Audrey Bilger
President
Reed College
Statement from the Reed College Board of Trustees Investment Committee
On September 15, 2024, the college administration received an email from an anonymous group of students with an attached divestment proposal pertaining to approximately 100 companies, including many U.S. defense and Israeli companies. Per Reed’s Investment Responsibility Policy, this communication was conveyed from the treasurer of the college to the investment committee for consideration.
The investment committee met on December 12, 2024, and decided not to proceed with divestment. The committee notes its fiduciary responsibility under both Oregon law and under the Reed College Investment Responsibility Policy cited above. The committee affirms the principle of institutional neutrality reflected in the investment policy and in the operating principles of the college and finds the students’ petition to be substantially political in nature.
By way of background, the college’s position on institutional neutrality was adopted, in part, in response to the college's historical experience. In the 1950s, during the McCarthy era, the college did support specific political positions, which resulted in the dismissal of a faculty member who refused to conform. The college later concluded that this dismissal—and the attempt to force a particular political belief on Reed's community members—was an error not to be repeated given its grave consequences for academic freedom. The Investment Responsibility Policy aims to support Reed's central educational mission and directs us to limit expenditures of resources to only those that advance this purpose. In a diverse community like Reed, where individuals possess widely divergent political and social views, our college should be guided in its operations by a commitment to liberal arts education, which virtually all of our community members share.
Finally, Reed's processes allow for community members to appeal to the full board of trustees any divestment decision made by the investment committee. Students may pursue this option if they wish.