Investing in corporations is not a neutral activity. It impacts people's lives
Since ethics is the core business of religious organisations, it might logically be expected that their investment portfolios would not contradict those ethics. Reality has proven quite different. Much 20th century research shows a secular-sacred divide between investments and religious missions. But with the rise of corporate social responsibility it seems that things are changing. Recent global research entitled `From Stewardship to Power’, shows that religious groups, whether wealthy or not, can be a force for change in the business community. That is, if the religious are willing to socially capitalise their power as investors.
Religious organisations’ grassroots networks also form great opportunities for faith-consistent investing. Imagine a Roman Catholic community in Ecuador working on a sugar plantation supplying a multinational soft-drink producer in the US. In the local church community, poor labour practices are discussed and the local priest contacts his opposite number in the US to share his frustration about the exploitation of `his´ community. The Church's global investments manager shares the findings with the soft drinks company during a shareholder meeting. The company follows up with the supplier in order to raise the labour standards. Grassroots networks not only signal issues but also provide access to large consumer communities. Another example: A Jewish ethical investment organisation that decides to tackle the malpractices of a company producing chocolate bars engages with the company as a shareholder but may also ask its members to boycott products until the firm has improved its human rights practices. What makes things particularly easy, is that all involved share the same set of beliefs. In this way, they can easily connect, align, decide and act as a group.