After an explosion in a Massey Energy-owned coal mine left 29 West Virginian workers dead in April, Ron Smith decided to investigate if Seattle University was invested in the company that had been fined for 500 safety violations in 2009 alone.
The university invests in a "fund of fund" (a mutual fund that invests in other mutual funds) managed by Cambridge Associates, a Boston-based investment consulting firm.
According to Smith, vice president of finance and business affairs, the list of Seattle U's investments is ever changing and difficult to track. But he did discover that a small part of the university's endowment was invested in Massey Energy.
Smith approached Cambridge Associates with his concerns about Massey's business practices. It will be announced in June whether or not the investment firm drops its shares of Massey Energy.
Seattle University's student Committee on Responsible Investment took similar action, aiding Loyola Chicago University in writing a letter to JPMorgan Chase about its business ethics.
Smith believes investment can be ethical, benefit the community and also provide a return for the endowment, which is used to fund scholarships and the operating budget.
"I think it's been proven," Smith said, "if you get the right [ethical investments], your return
doesn't suffer."
Maura Rendes, junior public affairs and Spanish major who has been working with Smith throughout the year, said she felt encouraged by Smith's actions.
"Just that [the university] took a stance on the issue, that's a success in and of itself," Rendes said. "We really do live our mission."
Rendes was involved in writing a sustainability clause to be included in the university's investment policies. The clause is awaiting ratification by the board of trustees.
While the university is taking action at the level of corporate investment, it has also invested in local micro-lending firms.
The university has invested $100,000 with Community Capital Development in Seattle's Central District. The company offers loans to people who do not have the resources required to get a loan at a large corporate bank. Many of the clients are aspiring small
business owners.
"This isn't exclusively about minorities. It's more about access," said Steve Brilling, executive director of the Entrepreneurship Center at Seattle U.
But the firm does not exclusively lend money; It also provides training and advice. Two to three Seattle U students will be able to take an active role in the advising process in the fall to further develop the university's partnership with CCD. Students will work with clients to determine if they do indeed need a loan and act as financial advisers. Brilling hopes the partnership will not only help students become more invested in the community surrounding Seattle U, but also teach them how to make a compelling case to a bank when requesting a loan.
"It's been slow moving, but we have a really good set up for next year," Rendes said of
the partnership.
She said although she would like to see the university investing more of its money locally in programs like CCD, the fledgling partnership is a good start.
Seattle U has been investing in micro-lending firms around the world since 2006 and has $1.2 million invested in micro-lending locally and internationally in Africa and South America.
Frances may be reached at fdinger@su-spectator.com
is a member of the 
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