My thesis research aims to answer the questions: Should Brown University adopt a tobacco-free investment policy and, if so, what could the University's method of handling tobacco investments imply for a more general environmentally-responsible investment policy at Brown?

In order to answer these questions I studied the history and current state of the socially-responsible investment (SRI) movement, including the ways in which SRI is practiced, the issues most commonly addressed through SRI, and the financial performance of SRI funds and investments. Because of my interest in environmental issues, I paid particularly close attention to the sub-field of environmentally-responsible investing (ERI). I then conducted a case-study of two northeastern universities, one which divested itself of its tobacco holdings and one which actively sought to maintain them. I also looked at eight other colleges who sold their tobacco stocks, in an effort to determine what factors led them to this decision. Finally, I did an in-depth study of Brown's own investment policies and practices, and attempted to assess the environmental impact of some of the companies in which the University currently invests, including tobacco companies.

I conclude that ERI is a flourishing movement with the potential to effect positive social change, particularly if more large institutional investors like Brown decide to become actively involved. On the basis of moral and financial grounds, I recommend that the Brown Corporation support President Gee's statement that Brown University should not "contribute to human misery" by investing in tobacco companies. Therefore, Brown should divest itself of its tobacco holdings immediately and adopt a policy, which prohibits future investments in tobacco-producing companies. My research indicates that in order for divestment to occur, a prominent member of a university's board or administration must support it. President Gee's statements suggest that this support is already present at Brown. Finally, I also recommend that Brown take several steps to initiate a more general ERI policy within the University, including reactivating the Committee on SRI and ensuring that it meets regularly, revoking the official proxy-voting policy of the Investment Committee, and putting a small amount of the endowment under ERI management.