The activities of portfolio companies in South Africa are reviewed in this report from the Advisory Committee on Shareholder Responsibility of Harvard University. A brief review of recent South African political and economic events includes a discussion of the nation's leadership, long-term social and political projections, labor policies, and the newly-developed labor codes of conduct. The Sullivan code is viewed as the most influential decree concerning the rights of non-white workers and provides a framework for future change in the workplace. Data on 49 companies in the Harvard portfolio with operations in South Africa were collected from various sources and are tabulated. The companies are grouped according to their responses to requests for information ranging from nonresponsive to very responsive. Variables investigated include: training programs; minimum wage; non-white promotions; non-white supervisory positions; non-whites supervising whites; equal benefit plans; bargain with non-white unions; and geographic location. It is concluded that the data indicate a situation of extreme racial inequality in jobs and employment in most companies. Six recommendations are proposed and it is suggested that Harvard support a resolution for withdrawal directed to any company that refused to disclose the requested information. Appended are the evaluation form and a report on the allocation of education resources in South Africa. (SF)