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What does a university owe to the community where it is based? The idea of an anchor institution reflects the relational dynamics between a large entity and the often-lower-income community where it is located or does a significant portion of its business. This field-based case examines the social responsibility of the University of Virginia (UVA), a public university founded in 1819 in Charlottesville by the third president of the United States, Thomas Jefferson. UVA’s significant growth has led to shortages in affordable housing, as UVA has purchased large swaths of land for its use and UVA students occupy much of the remaining lower-cost rentals near the university. As a result, local residents often find themselves pushed to outlying areas and lacking the public transportation necessary to commute to work. In the Charlottesville community, many have been calling on UVA to remedy the situation for over a decade. This issue is particularly salient in an environment where the president and board chair at the University of Pennsylvania was forced to step down for decisions related to sociopolitical issues beyond the campus. The case presents three different frameworks for considering social responsibility: as an anchor institution, as an entity exempt from property and income taxes, and as a public university subsidized by the state. The case guides students to policies underlying current socioeconomic conditions, the ethics of disproportionate use of limited resources, the obligations of tax exemptions, and the responsibilities of anchor institutions. It provides rich data for students to consider questions including the following: Is it fair for universities to enroll students without supplying housing for them? Does a public university have responsibilities that would not apply to a private university? Are UVA’s actions aligned with its culture and, by extension, the Jeffersonian ideal upon which it was founded?
To assess the social responsibility of anchor institutions. To examine the strategic choices and trade-offs that an organization must make to do good and do well. To consider the sociohistorical politics of place underlying decision-making. To discuss the role of governance and the relationship to culture in driving outcomes. To understand the goal and role of tax exemptions. To consider the ethics of disproportionate resource utilization in a space with limited access to alternatives.