Harvard University Recently Sold Most of Its Investments in Tobacco

Harvard University recently sold most of its investments in tobacco companies.The investments were quite profitable for the Harvard endowment.Derek Bok,who was Harvard's president at that time,said the divestiture was prompted by recognition of the dangers of smoking and concern over aggressive marketing tactics to promote tobacco products to teenagers and in countries where the dangers of smoking are not widely known.Bok stated the university was "motivated by a desire not to be associated as a shareholder with companies engaged in significant sales of products that create a substantial and unjustified risk of harm to other human beings." Harvard owned $58 million in tobacco company shares.An investment analyst noted that Harvard's action will have a "strong ripple effect across the country." Evaluate the actions of Harvard and evaluate the conduct of the tobacco companies to this point using both the Blanchard/Peale model and the moral reasoning process.