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Ethical investing,
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values-based investing,
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Bible-based investing;
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it goes by many terms. Whatever the expression, putting your
money where your morals are is beginning to catch on with people of
faith throughout the country.
“Ethical investing,” “values-based investing,” “Bible-based investing;” it goes by many terms. Whatever the expression, putting your money where your morals are is beginning to catch on with people of faith throughout the country.
The concept of “Socially responsible investing” (SRI) was born in the ’60s. Investors began to screen their investments to exclude companies engaged in a wide range of corporate behavior including pollution, child labor and even military weapons production.
Today, many Christians are disturbed by what they consider “cultural pollution.” Many of them do not want their money supporting abortion, pornography or gay, lesbian and transgender culture. When many conservative Christians begin to examine their financial portfolio, they are surprised to learn that their money is working at cross purposes with their deeply held religious values.
The search for solid moral character in companies often involves taking a closer look at management. Relationships are observed by tracking philanthropic gifts or contracts among board members. Another red flag can be tax disputes. Companies that pay hefty fines to regulators might as well be carrying a sign that reads “trouble.” Fines can indicate a lack of concern for authority. Salary and benefits can be another indicator. If a CEO is making more than $10 million per year, are they more concerned about vigilance or keeping their position?
Corporate scandals are just a part of the recent events that have worked the Christian community into a frenzy. Removing the Ten Commandments from the courthouse, removing “One Nation Under God” from the pledge of allegiance, banning prayer from public forums, cases of public school teachers showing bias against young Christians; all these instances and more have formed a growing flame. As a result, some Christians are increasingly reluctant to allow their investments to fund the efforts of the organizations and companies they ardently oppose.
It is interesting that the technological innovations of today, like the Internet, have made values-based screening available to Christians in a way never before possible. With today’s research capacity it is possible to invest in a wide range of investment alternatives that while secular in design, are morally neutral, based on thorough screening and research. Much of this research is done through the internet and searching through public records. It is possible to find out almost anything about a corporation. For example, you can look up income tax donations for gifts to organizations like NARAL (the National Abortionist Rights Organization). For those without the time or the computer savvy to do their own research, firms like AIG Advisor Group in Fair Oaks will do the research on their behalf.
Eric Heckman has more than 13 years of experience to the field of financial planning. Reach him at www.WealthCreator.com or 297-9800.
