Disinvestment

Disinvestment refers to the use of a concerted economic boycott to pressure a government, industry, or company towards a change in policy, or in the case of governments, even regime change. The term was first used in the 1980s, most commonly in the United States, to refer to the use of a concerted economic boycott designed to pressure the government of South Africa into abolishing its policy of apartheid. The term has also been applied to actions targeting Iran, Sudan, Northern Ireland, Myanmar, and Israel.

There is a movement to disinvest from coal, oil and gas companies. It is a social movement which urges everyone from individual investors to large institutions to remove their investments (to divest) from publicly listed oil, gas and coal companies, with the intention of combating climate change by reducing the amount of greenhouse gases released into the atmosphere, and holding the oil, gas and coal companies responsible for their role in climate change.

Founder of the movement Bill McKibben, a researcher and academic from University of Victoria, and creator of the webpage 350.org stated: “If it is wrong to wreck the climate, then it is wrong to profit from the wreckage. We believe […] organizations that serve the public good should divest from fossil fuels”

Eighteen American states have passed laws requiring the divestment of state pension funds from firms doing business with Iran.

The most frequently-encountered method of "disinvesting" was to persuade state, county and municipal governments to sell their stock in companies which had a presence in South Africa, such shares having been previously placed in the portfolio of the state's, county's or city's pension fund. Several states and localities did pass legislation ordering the sale of such securities, most notably the city of San Francisco. An array of celebrities, including singer Paul Simon, actively supported the cause.

Many conservatives opposed the disinvestment campaign, accusing its advocates of hypocrisy for not also proposing that the same sanctions be leveled on either the Soviet Union or the People's Republic of China. Ronald Reagan, who was the President of the United States during the time the disinvestment movement was at its peak, also opposed it, instead favoring a policy of "constructive engagement" with the Pretoria regime. Some offered as an alternative to disinvestment the so-called "Sullivan Principles", named after Reverend Leon Sullivan, an African-American clergyman who served on the Board of Directors of General Motors. These principles called for corporations doing business in South Africa to adhere to strict standards of non-discrimination in hiring and promotions, so as to set a positive example.

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Wikipedia