A majority of the Teacher Retirement System’s board appears to favor ridding its $94 billion portfolio of investments in pornography. But answers to the big questions - defining porn and identifying companies actively involved in it - remained elusive. The board took no action at its meeting Friday and could reconsider the issue at its March 9 to 10 meeting. In the meantime, the pension fund’s investment staff will research the details, such as: the possibility of jettisoning porn-related investments; how much that would cost; and whether it would breach the trustees’ duty to manage funds to generate the highest returns. The board oversees the pension fund for public school educators and provides pension checks, health care and disability benefits to 1.1 million people. It’s the biggest public fund in Texas and one of the nation’s top five.
Isn’t it the job of a pension fund’s board to invest in a manner that maximizes the return for the fund’s shareholders? Of course it is. This would explain why so many funds are invested in tobacco companies, arms manufacturers, distilleries, oil refineries, companies that use sweatshop labor…and porn studios? Yep, it would seem that we don’t want our teachers viewing porn in their classroom, but we don’t seem to have a problem with their retirement fund making money off porn. Or do we?
The problem, of course, is defining “pornography”. It’s not merely a case of, as Justice Louis Brandeis once said, “know[ing] it when I see it”, but of defining something that everyone perceives differently. And even if you succeed in codifying what pornography is, how do you go about identifying companies that participate in the production of it? The problem these days is that so many companies, from the Fortune 500 to shady back-room operations are invested in porn, either directly or indirectly. After all, there are billions of dollars in play. Sex is the one thing everyone has…or wants to have, certainly. It’s a universal desire and drive. Pornographic web sites employ cutting-edge technology, and these sites are among the most technologically advanced (not to mention profitable) sites out there. Like it or not, pornographers are businessmen looking to make a profit like any other business. Businesses large and small have recognized this and are investing more and more heavily in companies involved in the product of pornography. How, then, do you reasonably divest yourself of investments in companies producing pornography?
I suppose one could make a case for the appropriateness of the Texas Teacher Retirement System’s board wanting to ensure that it is not associated with pornography. The problem, though, is ensuring that it can do this while not limiting it’s ability to maximize it’s return on investment for their shareholders. Political correctness and maintaining community standards are all well and good, but where does the line get drawn? When you start heading down this path, you’d best understand what you’re in for…and when it comes to defining “pornography” and identifying “pornographers”, I don’t think these folks have a clue.
Be careful what you wish for, because if you’re not careful…well, you just might get it.
