"Socially responsible investment
involves investment strategies based on Catholic moral principles. These
strategies are based
on the moral demands posed by the
virtues of prudence and justice. They recognize the reality that socially
beneficial activities
and socially undesirable or even
immoral activities are often inextricably linked in the products produced and
the policies
followed by individual
corporations."
U.S. Conference of
Catholic Bishops
2003
image:ethicalmarkets.com
Socially Responsible Investment Guidelines
November 12, 2003
Principles for USCCB Investments
Introduction
The United States Conference of Catholic Bishops ("USCCB", "Conference") is
called to exercise faithful, competent and socially responsible stewardship in
how it manages its financial resources. As a Catholic organization, the
Conference draws the values, directions and criteria which guide its financial
choices from the Gospel, universal church teaching and Conference statements.
In order to function effectively and to carry out its mission, the Conference
depends on a reasonable return on its investments and is required to operate
in a fiscally sound, responsible and accountable manner. The combination of
religious mandate and fiscal responsibilities suggests the need for a clear
and comprehensive set of policies to guide the Conference's investments and
other activities related to corporate responsibility.
- Background
The Catholic bishops of the United States have addressed this in the
pastoral letter Economic Justice for All. The following excerpts from
the pastoral letter emphasize three basic themes:
- Church as Shareholder and Investor
"Individual Christians who are shareholders and those responsible within
church institutions that own stocks in U.S. corporations must see to it
that the invested funds are used responsibly. Although it is a moral and
legal fiduciary responsibility of the trustees to ensure an adequate
return on investment for the support of the work of the church, their
stewardship embraces broader moral concerns. As part owners, they must
cooperate in shaping the policies of those companies through dialogue with
management, through votes at corporate meetings, through the introduction
of resolutions and through participation in investment decisions. We
praise the efforts of dioceses and other religious and ecumenical bodies
that work together toward these goals. We also praise efforts to develop
alternative investment policies, especially those which support
enterprises that promote economic development in depressed communities and
which help the church respond to local and regional needs. When the
decision to divest seems unavoidable, it should be done after prudent
examination and with a clear explanation of the motives." (Economic
Justice for All, 354)
- Shareholder Responsibility
"Most shareholders today exercise relatively little power in corporate
governance. Although shareholders can and should vote on the selection of
corporate directors and on investment questions and other policy matters,
it appears that return on investment is the governing criterion in the
relation between them and management. We do not believe that this is an
adequate rationale for shareholder decisions. The question of how to
relate the rights and responsibilities of shareholders to those of other
people and communities affected by corporate decisions is complex and
insufficiently understood. We therefore urge serious, long-term research
and experimentation in this area. More effective ways of dealing with
these questions are essential to enable firms to serve the common good." (Economic
Justice for All, 306)
- Church as Economic Actor
"Although all members of the Church are economic actors every day of their
individual lives, they also play an economic role united together as
Church. On the parish and diocesan level, through its agencies and
institutions, the Church employs many people; it has investments; it has
extensive properties for worship and mission. All the moral principles
that govern the just operation of any economic endeavor apply to the
Church and its agencies and institutions; indeed the Church should be
exemplary." ("Economic Justice for All," 347)
Many dioceses and religious communities have also been seeking to apply
these directions through their own policies on corporate responsibility.
The USCCB Committee on Budget and Finance has sought a review and updating
of these guidelines based on universal Church teachings and USCCB
statements and policies. More than a decade ago the Bishops' Conference
adopted and began to implement Socially Responsible Investment Guidelines
(adopted at Nov.1991 General Meeting and presented in Origins, Nov.
28, 1991, Vol. 21. No. 25).
The Committee on Budget and Finance and the related Conference staff have
carried out these policies, but more comprehensive and clear corporate
responsibility guidelines are needed. Until now, the Conference corporate
responsibility policies have consisted primarily of exclusions, choosing
not to invest in companies that comprise about ten percent (10%) of the
S&P 500. Through this current review, the Conference seeks to put in place
policies that are broader, more explicit, active, flexible and effective
in applying the teaching of the Church to the realities of the market.
- Principles of Stewardship
This current effort to fashion such guidelines is guided by two fundamental
and interdependent principles:
Principle 1: The Conference should exercise responsible financial
stewardship over its economic resources. In practical fiscal terms, this
means obtaining a reasonable rate of return on its investments. For example,
the Conference now expects its managers to perform at least at the level of
the market. In some areas the Conference has an actual fiduciary role (e.g.,
pensions). This requires caution in terms of risks taken with Conference
resources.
Principle 2: The Conference should exercise ethical and social
stewardship in its investment policy. Socially responsible investment
involves investment strategies based on Catholic moral principles. These
strategies are based on the moral demands posed by the virtues of prudence
and justice. They recognize the reality that socially beneficial activities
and socially undesirable or even immoral activities are often inextricably
linked in the products produced and the policies followed by individual
corporations. Given the realities of mergers, buyouts and conglomeration, it
is increasingly likely that investments will be in companies whose policies
or products make the holding of their stock a "mixed investment" from a
moral and social point of view. Nevertheless, by prudently applying
traditional Catholic moral teaching, and employing traditional principles on
cooperation and toleration, as well as the duty to avoid scandal, the
Conference can reflect moral and social teaching in investments.
- Strategies
These two major principles work together to encourage the Conference to
identify investment opportunities that meet both our financial needs and our
social criteria. These principles are carried out through strategies that
seek: 1) to avoid participation in harmful activities, 2) to use the
Conference's role as stockholder for social stewardship, and 3) to promote
the common good.
Briefly, these three approaches may be described as follows:
- Do no harm (avoid evil): This strategy involves two possible
courses of action: 1) refusal to invest in companies whose products and/or
policies are counter to the values of Catholic moral teaching or
statements adopted by the Conference of bishops; 2) divesting from such
companies. The decision to divest, or to refuse to invest, would be based
on the principle of cooperation and the avoidance of scandal. It would
have to be done prudently, with care taken to minimize the financial
impact and possible other negative consequences. In some cases, Conference
policy may not absolutely require divestment, but significant Conference
investments in these areas might cause confusion or scandal (e.g., heavy
investment in conventional military weapons producers, gambling stocks,
etc.). In these cases, prudence would be the guiding principle.
- Active Corporate Participation. Given the clear teaching of
Economic Justice for All, it seems appropriate for the Conference to
adopt a strategy of active corporate participation with regard to its
stock holdings. Under this approach the Conference will seek to exercise
its normal shareholder responsibilities, especially casting informed votes
on proxies and shareholders' resolutions in accord with Conference
policies. It should be noted that failure to vote in such situations, or
assigning proxies to management, is effectively counted as a vote for
current management and the status quo. In the future the Conference should
vote its proxies and use its opportunities as a shareholder to support
policies in accord with its values and oppose those in conflict with them,
within the limitations discussed below.
This strategy involves actively using the Conference's position as
shareholder to influence the corporate culture and to shape corporate
policies and decisions. These activities could include dialogue with
corporate leadership, initiating or supporting shareholder resolutions,
and working with various religious and other groups who are working for
corporate responsibility, writing letters to corporate executives and
board members to advocate specific steps or to support or raise objections
to a corporation's activities or policies.
This approach could also enable the Conference to deal effectively with
the reality of "mixed investments." One way to be a socially responsible
investor is to set limits for corporations engaged in questionable or
objectionable activities, to hold a minimal position in those companies
that fall under the threshold, and then to use one's position as
shareholder to work actively to influence or redirect the activities or
policies of the corporation toward activities and policies which are
socially beneficial and serve the common good. Investments of this type
may be tolerated, after careful application of the principle of
cooperation and the duty to avoid scandal, so long as the Conference
engages in active participation and there is a reasonable hope of success
for corporate change.
- Positive Strategies ("Promote the Common Good"). These
strategies involve at least two possible courses of action: 1) supporting
policies and initiatives in companies owned by the Conference that promote
the values of Catholic moral and social teaching or positions advocated by
Conference statements while earning a reasonable rate of return; 2)
investments that promote community development, which, in some cases, may
result in a lower rate of return, but which nevertheless are chosen
because they give expression to the Church's preferential option for the
poor or produce some truly significant social good.
In the first case, the Conference can support companies and financial
institutions which, in addition to their fiscal merits and investment
advantages, have strong records in such areas as labor relations,
affirmative action, affordable housing, (for example, market-rate
certificates of deposit in institutions with special programs for low cost
housing, or common stocks of companies that produce socially superior
products and perform well in the market, etc.). In the second case, the
Conference already has positive experience with community development
investments through the Catholic Campaign for Human Development ("CCHD")
Given the purpose of the funds which the Conference holds, and, in some
cases, its fiduciary responsibilities, opportunities for investing in
community development initiatives with lower rates of return will probably
be limited to CCHD's efforts or other special initiatives.
- Financial Impact
The experience of the Conference has been that there has not been a negative
impact on the financial return of the Conference's investments since these
Socially Responsible Investment Guidelines have been in place.
When the guidelines were put into place and in our review, the Conference
consulted with advisors and groups who have extensive experience in managing
funds under these kinds of policies. Each of them presented evidence that
their restricted funds had performed better than or at the level of the
market as a whole. Theoretically, a corporate responsibility program that
precluded investment in a significant segment of the market would reduce the
options available to the portfolio management and could negatively impact
performance. Since the market is so large, every investor selects some
stocks and avoids others, using a variety of financial and other evaluative
financial criteria. The addition of the ethical criteria is an extension of
this process. Some argue that further limiting investor options reduces
flexibility, can distort market choices and could negatively impact
financial return. Others argue that the market is so large and varied that
ethical criteria do not unduly inhibit investor choice, and there are ample
options available to a capable and skilled advisor. They also argue that
there are many well-run and profitable companies that practice corporate
responsibility. In fact, they suggest that in today's environment of
increased regulation and social concern, those companies with good records
in these areas often perform better than their counterparts.
It is not possible to predict future results from past experience; therefore
the financial impact of these policies needs to be continuously monitored.
- Conference Directions
In carrying out these strategies the Conference will be required to
strengthen its capacity in several areas:
- Corporate Awareness: The Conference will have to build on its
current efforts and monitor more closely how Catholic teaching and
Conference policy are advanced and undermined in the marketplace and by
corporate actions. It will need to make use of the growing resources that
regularly monitor corporate responsibility issues and stay in touch with
networks of others who share similar concerns. In addition, the Conference
ought to subscribe to the publications of groups that offer research,
advice, and assistance in the area of corporate responsibility.
- Investment Guidance: The Conference will have to continue to
work closely with its investment advisors, to clearly articulate its goals
and policies in this area and assist them in carrying them out. A tool
that has proven useful for others is a set of instructions for voting
proxies on issues of concern to the client. The Conference needs
investment advisors who have shown themselves to be sympathetic, skillful
and successful in carrying out an effective investment program within
these kinds of constraints.
- Prudence/Common Sense: Our work with investment advisors and
others interested in corporate responsibility will require both prudence
and common sense in carrying out these policies. The basic direction is
set by Conference policies. The strategies employed and their scale,
timing and pace will depend on the considered judgments of the Committee
on Budget and Finance, USCCB staff and advisors.
- Limitations: We seek to implement these guidelines without new
investments in staff. In carrying them out, they may need to be phased in
over time. It will be necessary to focus our efforts on a few areas at a
time rather than trying to implement in a sweeping way a comprehensive set
of policies. Clearly, this task will require additional attention from the
Committee on Budget and Finance and its related staff, as well as other
Conference staff with expertise in related areas (e.g., Doctrine,
Pro-Life, Social Development and World Peace, etc.).
- Summary
In seeking to carry out these continuing principles and directions, the
Conference has both limitations and opportunities. Its corporate
responsibility policies need to reflect both the financial and fiduciary
responsibilities of the Conference, and the mandate to apply our traditional
social teaching in the world of investments. The Conference cannot preach to
others what it does not practice itself. The Committee on Budget and Finance
seeks to pursue these policies in good faith, recognizing the limitations of
staff and other committee commitments. The Committee seeks to pursue these
policies not in any spirit of confrontation or conflict, but in a sincere
desire to work for a more just society and more peaceful world through the
careful stewardship of the limited resources of the Conference. In this
modest, but hopefully useful effort, the Committee on Budget and Finance
seeks both to protect the financial resources of the Conference and to
exercise its responsibilities as an investor to advance in a small way the
values of the faith. While recognizing the complexity and challenge of this
exercise of faithful stewardship, the Committee is convinced that the
Conference cannot fulfill its responsibilities without a clear commitment to
socially responsible investing.
USCCB Investment Policies
Introduction
The USCCB investment policies cover the following areas: protecting human
life; promoting human dignity; reducing arms production; pursuing economic
justice; protecting the environment, and encouraging corporate responsibility.
Each policy recommendation is presented according to the following format:
- One or more statements of Catholic teaching or Conference policy on the
topic drawn from a pastoral letter or other documents adopted by the bishops
- A general statement of policy or policies to guide the investment
activities of the Conference
- In certain areas, a series of options that are based on the principles
as noted beginning on page 1
- Protecting Human Life
" Life in time, in fact, is the fundamental condition, the initial stage and
an integral part of the entire unified process of human existence. It is a
process which, unexpectedly and undeservedly, is enlightened by the promise
and renewed by the gift of divine life, which will reach its full
realization in eternity (cf. 1 Jn 3:1-2). At the same time, it is precisely
this supernatural calling, which highlights the relative character of each
individual's earthly life. After all, life on earth is not an "ultimate" but
a "penultimate" reality; even so, it remains a sacred reality entrusted to
us, to be preserved with a sense of responsibility and brought to perfection
in love and in the gift of ourselves to God and to our brothers and
sisters." (Pope John Paul II, The Gospel of Life (Evangelium vitae),
no. 2; 1995.
"Human life is sacred because from its beginning it involves 'the creative
action of God', and it remains forever in a special relationship with the
Creator, who is its sole end. God alone is the Lord of life from its
beginning until its end: no one can, in any circumstance, claim for himself
the right to destroy directly an innocent human being." (Congregation
for the Doctrine of the Faith, Donum vitae, no. 5 and Pope John XXIII's
encyclical, Mater et magistra)
- Abortion
"...we proclaim that human life is a precious gift from God; that each
person who receives this gift has responsibilities toward God, self, and
others; and that society, through its laws and social institutions, must
protect and nurture human life at every stage of its existence. These
beliefs flow from ordinary reason and from our faith's constant witness
that 'life must be protected with the utmost care from the moment of
conception' (Pastoral Constitution on the Church in the Modern World,
no. 51)--a teaching that has been a constant part of the Christian
message since the apostolic age." (U.S. Catholic Bishops, Pastoral Plan
for Pro-Life Activities: A Campaign in Support of Life, pp 1-2, November
2001.)
"At this particular time, abortion has become the fundamental human rights
issue for all men and women of good will. The duty to respect life in all
its stages and especially in the womb is evident when one appreciates the
unborn child's membership in our human family, and the grave consequences
of denying moral or legal status to any class of human beings because of
their age or condition of dependency..." (Resolution on Abortion,
November 7, 1989)
Policy
In view of the nature of abortion, the investment policy of the USCCB
should remain as it is, namely, absolute exclusion of investment in
companies whose activities include direct participation in or support of
abortion.
Direct participation in abortion may include, but not be limited to,
companies involved in the manufacture of abortifacients and publicly held
health-care companies that perform abortions when not absolutely required
by federal or state law.
Additional Policy Recommendation
The Conference will consider supporting shareholder resolutions on
abortion-related issues when deemed appropriate.
- Contraceptives
"The Church...teaches that each and every marital act must of necessity
retain its intrinsic relationship to the procreation of human life."
(Paul VI, Humanae vitae, n.11)
"In contraceptive intercourse the procreative or life-giving meaning of
intercourse is deliberately separated from its love-giving meaning and
rejected; the wrongness of such an act lies in the rejection of this
value." (To Live in Christ Jesus: A Pastoral Reflection on the Moral
Life, NCCB, November 11, 1976, n. 46.)
Policy
In view of the Church's clear teaching on the immorality of contraceptive
intercourse, the USCCB will not invest in companies that manufacture
contraceptives or derive a significant portion of its revenues from the
sale of contraceptives, even if they do not manufacture them.
- Embryonic Stem Cell/Human Cloning
"No objective, even though noble in itself, such as a foreseeable
advantage to science, to other human beings or to society, can in any way
justify experimentation on living human embryos or fetuses, whether viable
or not, either inside or outside the mother's womb...To use human embryos
or fetuses as the object of instrument of experimentation constitutes a
crime against their dignity as human beings having a right to the same
respect that is due to the child already born and to every human person."
(Congregation for the Doctrine of the Faith, Donum vitae, no. 4.)
"[The] evaluation of the morality of abortion is to be applied also to the
recent forms of intervention on human embryos which, although carried out
for purposes legitimate in themselves, inevitably involve the killing of
those embryos. This is the case with experimentation on embryos..."
(Pope John Paul II, Evangelium vitae, no. 63.)
"...attempts or hypotheses for obtaining a human being without any
connection with sexuality through 'twin fission,' cloning or
parthenogenesis are to be considered contrary to the moral law, since they
are in opposition to the dignity both of human procreation and of the
conjugal union." (Sacred Congregation for the Doctrine of the Faith,
Donum vitae, no. 6)
"It is immoral to produce human embryos destined to be exploited as
disposable 'biological material.'" (Donum vitae, no. 5)
Policy
The USCCB will not invest in companies that engage in scientific research
on human fetuses or embryos that (1) results in the end of pre-natal human
life; (2) makes use of tissue derived from abortions or other life-ending
activities; or (3) violates the dignity of a developing person. Specific
activities covered by the policy will include:
- Embryonic stem cell research (ESCR);
- Fetal tissue research or stem cell research derived from embryos;
and
- Human cloning.
Because this field of research is dynamic, new forms of research, or
products and services derived from such research, will be evaluated on a
case-by-case basis.
Promoting Human Dignity
- Human Rights
"Promotion of the full complement of human rights and religious liberty
has been and remains a central priority for our conference...the
maintenance of peace and the progress of authentic democracy in the world
will require enhancing the priority in US foreign policy of human rights,
especially of the poor, women and vulnerable children, and improving
international arrangements for their enforcement." (The Harvest of
Justice Sown in Peace, 1993)
"In each of these countries, foreign corporations-American, European,
Asian, and others reap large profits from diamonds and oil while too often
demonstrating little concern for the negative impact their activities may
have on peace stability, human rights, and the environment. As part of
this exchange for natural resources, individuals, multinational
corporations, and foreign governments have provided arms to African
governments and non-governmental entities resulting in further instability
and deeper human suffering." (A Call to Solidarity with Africa,
p. 17)
"Catholics managing U.S. and multinational corporations bear a special
responsibility in the exercise of their professional obligations,
particularly where the activities of their corporations might exacerbate
conflict, corruption, human rights abuses, and environmental degradation
in Africa. They could play a central role in helping to promote prosperous
and just economics in Africa." (A Call to Solidarity with Africa,
p. 30)
Policy
USCCB will actively promote and support shareholder resolutions directed
towards protecting and promoting human rights. For example, USCCB could
join efforts to influence corporations that are engaged in extractive
industries or are operating in countries with significant human rights
concerns.
Additional Policy Recommendations
USCCB will use selected shareholder resolutions and other means to
encourage companies to provide sufficient wages, working conditions and
other social benefits that enable their employees and families to met
basic human needs.
USCCB will seek means to encourage efforts by companies to promote a
respect for fundamental human rights, especially in those countries in
which these companies operate that have documented practices that deny or
violate the human rights of their citizens.
- Racial Discrimination
"Discrimination based on the accidental fact of race or color, and as such
injurious to human rights regardless of personal qualities or
achievements, cannot be reconciled with the truth that God has created all
men with equal rights and equal dignity." (Discrimination and Christian
Conscience, n. 11.)
"Racism is a sin: a sin that divides the human family, blots out the image
of God among specific members of that family, and violates the fundamental
human dignity of those called to be children of the same Father."
(Brothers and Sisters To Us, n. 9.)
"Discrimination in job opportunities or income levels on the basis of
race, sex, or other arbitrary standards can never be justified."
(Economic Justice For All, n. 73.)
Policy
USCCB will divest from those companies whose policies are found to be
discriminatory against people of varied ethnic and racial backgrounds that
have been historically disadvantaged..
Additional Policy Recommendations
USCCB will actively promote and support shareholder resolutions directed
towards equal opportunities for minorities.
USCCB as a shareholder will actively work for the inclusion of minorities
on corporate boards.
- Gender Discrimination
"Since women are becoming ever more conscious of their human dignity, they
will not tolerate being treated as mere material instruments, but demand
rights befitting a human person both in domestic and public life."
(Pope John XXIII, Pacem in terris, n. 41)
"Forms of social or cultural discrimination in basic personal rights on
the grounds of sex, race, color, social conditions, language or religion
must be curbed and eradicated as incompatible with God's design." (Gaudium
et spes, n. 29.)
"We also urge that women should have their own share of responsibility and
participation in the community life of society and likewise of the
Church." (1971 Synod of Bishops, Justice in the World, III/4.)
"The concrete and historical situation of women...is weighed down by the
inheritance of sin . . . . This inheritance is expressed in habitual
discrimination against women in favor of men." (Mulieris Dignitatem,
n. 14)
"Vigorous action should be undertaken to remove barriers to full and equal
employment for women" (Economic Justice for All, n. 199.)
Policy
The USCCB will divest from those companies whose policies are found to be
discriminatory against women.
Additional Policy Recommendations
The USCCB will direct its investment advisors to invest in companies that
actively promote corporate policies on equal pay and promotion
opportunities for women, and accommodation of legitimate family needs.
The USCCB will exercise its responsibility as shareholder to promote the
active participation of women in the life of the company, particularly in
terms of policy and decision-making, and inclusion in corporate leadership
positions.
- Access to Pharmaceuticals (e.g. HIV/AIDS)
"Most [Africans] lack access to health services or safe drinking water.
Malaria, tuberculosis, HIV/AIDS, and other communicable diseases threaten
to wipe out as much as one-quarter of the populations of some African
countries over the next twenty years." (A Call to Solidarity with
Africa, p. 13)
We also urge the international community and major pharmaceutical
companies to respond more effectively to the needs of AIDS patients in
poor countries "so that these men and women, tired in body and soul, may
have access to the medicines they need." (A Call to Solidarity with
Africa, p. 21)
Policy
USCCB will encourage companies to undertake or participate in programs
designed to make life-sustaining drugs available to those in low-income
communities and countries at reduced, affordable prices, consistent with
our Catholic values.
Additional Policy Recommendations
USCCB will actively encourage and support shareholder resolutions directed
towards making life-sustaining drugs more available and affordable to
low-income communities and nations.
- Curbing Pornography
"Pornography itself, which denies the dignity which God gives each human
being. This kind of 'entertainment'...blocks the moral and emotional
development of those who are lured into its use...At this level we are
dealing with what is usually referred to in legal terms as obscenity and
indecency."
"Soft-core pornography (sometimes described as erotic rather
than obscene) which is readily available in several forms. Some
R-rated movies [which] are only marginally less offensive than X-rated
films."
"Material which, while not usually identified as either hard core
or soft core, is disturbing because it seems to pervasively
present, offering portrayals of sex in a frivolous and titillating
manner."
(Renewing the Mind of the Media, pg. 109)
Policy
The USCCB will not invest in a company that derives a significant portion
of its revenues from products or services intended exclusively to appeal
to a prurient interest in sex or to incite sexual excitement. These would
include, but not be limited to, sexually explicit (X-rated) films, videos,
publications, and software; topless bars and strip clubs; and sexually
oriented telephone and Internet services.
Additional Policy Recommendation
The USCCB will promote and support initiatives, including in some cases,
shareholder resolutions, to promote responsible and family-oriented
program content development by media companies.
Reducing Arms Production
- Production and Sale of Weapons
"While extravagant sums are being spent for the furnishing of ever new
weapons, an adequate remedy cannot be provided for the multiple miseries
afflicting the whole modern world. Disagreements between nations are not
really and radically healed. On the contrary, other parts of the world are
infected with them . . . . Therefore, it must be said again: The arms race
is an utterly treacherous trap for humanity, and one which injures the
poor to an intolerable degree." (Gaudium et Spes, n. 81)
"The serious distortion of national economic priorities produced by
massive national spending on defense must be remedied. Clear-sighted
consideration of the role of government and the economy shows that the
government and the economy are already closely intertwined through
military research and defense contracts. Defense-related industries make
up a major part of the U.S. economy and have intimate links with both the
military and civilian government; they often depart from the competitive
model of free-market capitalism. Moreover, the dedication of so much of
the national budget to military purposes has been disastrous for the poor
and vulnerable members of our own and other nations. The nation's spending
priorities need to be revised in the interests of both justice and peace."
(Economic Justice for All, n. 320)
"We do not perceive any situation in which the deliberate initiation of
nuclear warfare on however restricted a scale can be morally justified."
(The Challenge of Peace, n. 150)
Policy
The Conference, through its investments as well as its advocacy, seeks to
discourage any nuclear and conventional arms race and to limit the
distortions in the U.S. and global economy resulting from disproportionate
military spending. The Conference will, therefore, avoid investment in
firms primarily engaged in military weapons production or the development
of weapons inconsistent with Catholic teaching on war (e.g., biological
and chemical weapons, arms designed or regarded as first-strike nuclear
weapons, indiscriminate weapons of mass destruction, etc.)
Additional Policy Recommendation
The Conference will support shareholder actions to limit weapons
production, to limit foreign sales of weapons and to convert corporate
capacity to non-military uses.
Antipersonnel Landmines
"Government controls do not absolve those involved in the arms industry of
moral responsibility for their decisions to sell arms. They have a moral
obligation not only to ensure compliance with export controls, but also to
avoid sales that will probably be used for illegitimate purposes or that
will threaten stability and peace."
We would like to add our voice to the appeals of Pope John Paul II and the
growing movement to control and eventually ban antipersonnel landmines.
The Holy Father has issued "a vigorous appeal for the definitive cessation
of the manufacture and use of those arms called 'anti-personnel'..."
(Sowing the Weapons of War)
Policy
USCCB will not invest in companies that are directly involved in the
manufacture, sale, or use of anti-personnel landmines.
Pursuing Economic Justice
- Labor Standards/Sweatshops
"If the dignity of work is to be protected, then the basic rights of
workers must be respected--the right to productive work, to decent and
fair wages, to organize and join unions, to private property and to
economic initiative." (Sharing Catholic Social Teaching, p. 5)
"The attainment of the worker's rights cannot however be doomed to be
merely a result of economic systems which on a larger or smaller scale are
guided chiefly by the criterion of maximum profit. On the contrary, it is
respect for the objective rights of the worker--every kind of worker:
manual, or intellectual, industrial or agricultural, etc.--that must
constitute the adequate and fundamental criterion for shaping the whole
economy, both on the level of the individual society and state and within
the whole of the world economic polity and of the systems of international
relationships that derive from it." (Laborem Exercens, #17)
Policy
USCCB will actively promote and support shareholder resolutions directed
towards avoiding the use of sweatshops in the manufacture of goods.
Additional Policy Recommendations
USCCB will promote and support shareholder resolutions to promote generous
wage and benefit policies and adequate worker safety guidelines.
- Affordable Housing / Banking
"We are particularly concerned about the abundant evidence of 'redlining'
or disinvestment. . . . Where it exists it must be condemned;
discrimination based on geography is as destructive as other forms of
discrimination. We must insure fair and equal access to available credit.
We urge banks and savings and loan associations to meet their
responsibilities in central city areas. We recommend financial
institutions which have chosen to intensify programs of investment in
these neighborhoods. . . . We also urge individual depositors and those
responsible for Church funds to encourage a responsible and sensitive
lending policy on the part of the financial institutions which they
patronize." (The Right to a Decent Home: A Pastoral Response to the
Crisis in Housing, November 20, 1975, n. 32.)
Policy
The Conference will not deposit funds in a financial institution that
receives less than a "satisfactory" rating from federal regulatory
agencies under the Community Reinvestment Act.
Additional Policy Recommendations
The Conference, through private correspondence and appropriate shareholder
action, will encourage the financial institutions where it deposits its
resources to undertake programs and implement policies to secure an
"outstanding" rating under the act.
The Conference will communicate, where appropriate, to its financial
institutions our support for their positive performance under the
Community Reinvestment Act.
Protecting the Environment
"Our tradition calls us to protect the life and dignity of the human person,
and it is increasingly clear that this task cannot be separated from the
care and defense of all creation...We must seek a society where economic
life and environmental commitment work together to protect and to enhance
life on this planet."
"The ecological problem is intimately connected to justice for the
poor...the poor suffer most directly from environmental decline..."
"Environmental progress cannot come at the expense of workers and their
rights."
"We ask business leaders and representatives of workers to make the
protection of our common environment a central concern in their activities
and to collaborate for the common good and the protection of the earth."
(Renewing the Earth, 1991)
Policy
USCCB investment policy will actively promote and support shareholder
resolutions which encourage corporations to act "to preserve the planet's
ecological heritage, addressing the rampant poverty in the poorest nations,
redirecting development in terms of quality rather than quantity in the
industrial world, [and] creating environmentally sensitive technologies."
(Renewing the Earth, 1991)
Additional Policy Recommendations
USCCB investment policy will encourage policies and business that "undertake
reasonable and effective initiatives for energy conservation and the
development of alternate renewable and clean energy resources...[and
offering] incentives to corporations to reduce greenhouse gas emissions and
assistance to workers affected by those policies." (Global Climate
Change, 2001)
Encouraging Corporate Responsibility
"The private sector must be not only an engine of growth and productivity,
but also a reflection of our values and priorities, a contributor to the
common good. Examples of greed and misconduct must be replaced with models
of corporate responsibility." (A Place at the Table, 2002)
"Ethical responsibility is not just avoiding evil, but doing right,
especially for the weak and vulnerable. Decisions about the use of capital
have moral implications: Are companies creating and preserving quality jobs
at living wages? Are they building up community through the goods and
services they provide? Do policies and decisions reflect respect for human
life and dignity, promote peace, and preserve God's creation? While economic
returns are important, they should not take precedence over the rights of
workers or protection of the environment." (Everyday Christianity,
p. 6)
Policy
USCCB will encourage companies to report on social, environmental, as well
as financial performance.
Additional Policy Recommendations
USCCB will actively promote and support shareholder resolutions directed
towards adoption of corporate social responsibility guidelines within
companies.
Office of Finance/Accounting Services
United States Conference of Catholic Bishops
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