EARTHKEEPING NEWS A NEWSLETTER OF THE NORTH AMERICAN COALITION FOR CHRISTIANITY AND ECOLOGY Volume Nine, Number Three March/April 2000 INVESTING TO INFLUENCE CORPORATE ETHICS Using the Medium to Convey the Message Churches in America are stewards of billions of dollars in stocks and bonds in pension funds and endowments. Many communities of faith have decided that how this wealth is invested is as important to their mission as the rate of return on the investment. This decision has been implemented primarily by purchasing stock directly in companies in order to vote for or against company policies, or by investing in socially responsible mutual funds that have already screened companies they invest in. Through the Interfaith Center on Corporate Responsibility (ICCR), denominations, dioceses and religious communities work for stewardship of the earth and social justice in and through economic structures. ICCR's The Corporate Examiner, published ten times a year, examines US church and corporate policies and actions on nuclear weapons, environment, foreign investment, minorities and women, health, hunger, energy, human rights and alternative investments. (Corporate Accountability Project, ICCR, 475 Riverside Drive, NYC 10115; 212/870-2295) The social responsibility of the Church needs to be described as that of the pioneer.... It is that group which hears the Word of God, which sees His judgments, which has the vision of the resurrection.... In ethics it is the first to repent for the sins of a society, on behalf of all. When the property institutions of society are subject to question because innocent suffering illuminates their antagonism to the will of God, then the Church undertakes to change its own use of these institutions and to lead society in their reformation. From "The Responsibility of Church for Society" by H. Richard Niebuhr in The Gospel, the Church and the World Kenneth Scott Latourette, Ed. Harper & Brothers, 1946 Some church groups take widely publicized action to engage companies' shareholders in dialog on social issues. For example, in 1998 the Episcopal Church proposed resolutions to be voted on at the annual meetings of 14 companies in which it holds stock. These resolutions included, among others, proposals to endorse the CERES Principles on environmental responsibility, ethical criteria for military contracting, support of fair labor practices, and equal opportunity principles. (Harry Van Buren, Episcopal Office of Social Responsibility in Investment, 716/889-3568; harryvb@aol.com) In any given year approximately 250 shareholder resolutions are included in companies' proxies, proposing a variety of changes in social policies and practices. Individuals and institutions that have held at least $2,000 in market value of a public company's securities for a year may submit a proposal for inclusion in a company's proxy and action at the next shareholders' meeting. The procedures which must be followed are set out in clear language in the SEC's proxy rules at 17 CFR Sec. 240.14a-8. The ELCA Office of Social Responsibility in Investment sends out information packets to its shareholder network of pension funds, foundations, schools, universities, seminaries and synods. The Social Purpose Fund of the Board of Pensions screens out companies that deal in armaments, alcohol, gambling, tobacco and environmental pollution. (Trudy Brubaker, ELCA Director for Socially Responsible Investments, 412/367-8222; trudy.brubaker@ecunet.org) Doing Well Doing Good Socially responsible investing (SRI) does not necessarily mean accepting a lower rate of return, but rather investing prudently while ensuring that investment choices are consistent with social goals. There are numerous mutual funds, some denomination based, that apply social and qualitative screens. The evidence is strong that companies with good social records perform better financially in the long run than those that behave irresponsibly. The Domini 400 Social Index (DSI), a benchmark for measuring the impact of social screening on financial performance, includes companies that have passed through a set of exclusionary screens (e.g., no tobacco, alcohol, gambling, or military contracting) as well as a set of qualitative screens in the areas of community, diversity, employee relations, environment and product safety. The Domini Social Index has outperformed the Standard and Poor 500 Index, on a total return basis and on a risk-adjusted basis, since its inception in May 1990. (Social Investment Forum; www.socialinvest.org) Readers, what has been your experience with socially responsible investing? Earthkeeping News will publish your comments for the benefit of other readers. Here is an example: Dear Editor, I have an annuity with Mennonite Mutual Aid (MMA) that invests in the PAX fund, an SRI. Their accompanying statement says, "You will be pleased to know that we invest your annuity dollars in harmony with Christian beliefs, with a special emphasis on providing first-mortgage loans to churches. In addition your participation helps us meet needs in the church without any extra cost to you. MMA provides grants for congregations, scholarships for students to attend church colleges and seminaries, and more." For more information call MMA, 800-348-7468; www.mma-online.org Jocele Meyer, Fresno OH Home     Table of Contents