Title: Lexington Theological Seminary divests tobacco stock
Date: March 20, 1998
Disciples News Service
Christian Church (Disciples of Christ)
Contact: news@cm.disciples.org
98b -19
LEXINGTON, Ky. (DNS) -- The board of trustees of Lexington Theological Seminary, meeting March 9, voted to divest the seminary endowment portfolio of stocks of major tobacco manufacturing companies.
The action was part of a larger objective to "weigh carefully its social responsibilities with respect to both human and natural resources" in making investment decisions, according to LTS officials. Trustees also voted to establish a "social conscience" screening process for investments.
The first use of the social conscience screen was focused on tobacco manufacturing. In a lively debate, the board decided that the seminary should not be in a position of supporting tobacco manufacturing companies.
The board's decision was affected by its determination that the product has no redeeming value, that research indicates tobacco contributes to the untimely deaths of some 400,000 Americans a year, along with millions worldwide, and that the companies themselves appear to have been involved in troubling practices related to putting additives in tobacco products and targeting young people with their advertising.
"Lexington Theological Seminary is deeply concerned about what is happening, and what is likely to happen, to tobacco farmers and their families over the next few years," said the Rev. Richard L. Harrison, Jr., president.
"Tobacco farmers are struggling over this issue. But they are trapped. For many years, indeed, for centuries, tobacco has been one of the most profitable of all crops. Tobacco growing has been an essential factor in the survival of small farms across the Upper South. No other widely produced crop provides such a high per acre profit."
"It seems to me," stated Harrison, "that those who profit from the work of tobacco farmers should help them out of their economic and moral dilemma. Governments have received billions of dollars in taxes from the labor of these farmers, and the manufacturing companies have made hundreds of billions in profits.
"The proposals now being put forth in Washington to develop a settlement that will provide for some form of compensation for farmers needs to go forward, and they must be strengthened so as to give these farmers a realistic opportunity to maintain their standard of living. Tobacco farmers often speak of wanting to be known as high quality farmers and people. They have pride in their roles as producers in the agricultural community, and those who are Christians want the opportunity to continue to work the land, work which -- according to their Biblical faith -- has a spiritual dimension."
The board acknowleged that Lexington Theological Seminary has a long history of relationship with tobacco. Located in the Bluegrass region of Kentucky, many of its students have received part of their education for ministry by serving as student ministers of rural churches whose members grow tobacco. And, many of the seminary's supporters, especially those in Kentucky, Virginia, and North Carolina, have made gifts to the institution based in part on their tobacco earnings.
In recent years the seminary has worked with the Christian Church (Disciples of Christ) in Kentucky in sponsoring a series of conferences on the "Tobacco Church." These meetings have focused on the issues related to southern rural churches that exist in tobacco fueled local economies. The third in the series is scheduled for Aug. 28.
"We will continue to explore the issues facing Christians living in tobacco country," said Harrison. "We will work to support justice for farmers while also supporting efforts to limit the spread of tobacco use among the young.
"For us as an institution of the church, there is simply no justification for choosing to invest our funds in tobacco manufacturing," he said. As for other areas of ethical investment, it is the intention of the "social conscience screen" to identify the areas of concern. In most cases, the result would be to exercise proxies and vote on issues brought before companies in which the seminary has invested.
"Generally, when a company or industry receives notoriety for ethical wrongdoing, it has to do with policies and practices. These shortcomings can be addressed and challenged by stockholders," explained Harrison. "In the case of tobacco, however, it is the product itself, as well as the practices of the companies, that makes compelling the decision to divest."
Harrison added, "We are not naive. We understand that in the interconnectedness of the world's economy, it is not possible to have pure' investments. However, when a corporation receives a heavy proportion of its profit from a product that we understand from federal research causes so many deaths, so much suffering, and produces no good effect, we simply have to take a stand."
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