Faith-based shareholder activism dates back to the 1970s
Until the 1990s, the monasteries had few funds. That changed as they began to set aside money to care for the elderly sisters as the community grew.
“We felt it was very important to do it in an honest way,” said Sister Rose Marie Stallbaumer, who has been the society's treasurer for years. “We wanted to make sure we weren't just raising money to help ourselves by hurting others.”
Faith-based shareholder activism can often be traced back to the early 1970s, when religious groups made decisions for American companies to withdraw from South Africa due to apartheid.
In 2004, the sisters of Mount St. Scholastica joined the Benedictine Coalition for Responsible Investment, an umbrella group led by Sister Susan Mika, a Texas-based nun who has been working in the field since the 1980s.
The Benedictine Coalition works closely with the Interfaith Center for Corporate Responsibility, which serves as a clearinghouse for shareholder resolutions, coordinating with religious groups—including a number of Catholic orders—to promote assets and file on topics focused on social justice.
The Benedictines have played a major role in the ICCR for years, said Tim Smith, the institute's senior policy adviser. It can be a daunting task, where the needle moves only a little each year, but she said the sisters “have the endurance of long-distance runners.”
Resolutions rarely pass, and even if they do, they are usually not binding. But they are still an educational tool and a way to raise awareness within the company. The Benedictine sisters have watched over the years as support for some of their decisions has gone from the low single digits to 30% or a majority.
Little by little, environmental causes and concerns about human rights have shaken some shareholders, as the growing backlash against investments involving ESG (environmental, social and governance concerns).
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