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October 22, 2004
Making a responsible choice
MARYELLEN POLIKOFF SPECIAL TO THE JEWISH BULLETIN
The practice of tikkun olam, or repairing the world through
social action, is one of the traditional categories of tzedakah
righteousness and justice, and the "setting straight"
of the world.
Many of us are deeply committed to tzedakah through acts of kindness
and charity but we might be unaware of the power that our savings
and investments can have in the world through the actions of corporations
and institutions. Since tikkun olam is identified with working for
social justice, peace, freedom, equality and the restoration of
the environment, the socially responsible investment (SRI) movement
provides us with an opportunity to examine how our financial deeds
play an important part of this effort.
Jewish teachings stress partnership and investment over mere charity,
and there are opportunities to invest our savings in community development
all over the world. We are keenly aware of the tragedy of overt
oppression but it is more difficult to be aware of the more subtle
forms of oppression that people might suffer due to corporate actions.
Our history as an oppressed people should make us naturally sympathetic
to this suffering. An awareness of a corporation's policies on wages
and supply-chain ethics can help investors become agents of change.
There is much commentary in Judaism on our obligation to care for
our resources and environment. Environmental concerns are growing
exponentially and sustainable development is a global concern. Are
the companies that we support through investment helping or hindering
the repair of the environment? This information is becoming more
available as corporations are expected to report on their environmental
affairs and there are many mutual funds that have minimum environmental
standards for investments. And if a corporation's environmental
performance is considered acceptable based on lax environmental
legislation or lack of enforcement, SRI investors form a unified
voice to support higher environmental standards.
The Union of American Hebrew Congregations (UAHC) has passed several
resolutions proclaiming their vested interest in socially responsible
investing. In 1997, the 64th UAHC General Assembly acted on a suggestion
from the commission on social action and reaffirmed Reform Judaism's
longstanding commit- ment to socially responsible investing practices
(www.rj.org/
uahc/dallas/areso/social.html).
SRI policies and practices are an organic expression of Reform Judaism's
core beliefs. The UAHC worked closely with the Interfaith Centre
on Corporate Responsibility (ICCR), an association of more than
250 faith-based institutional investors to develop guidelines and
strategies that are now becoming common among religious organizations
all over the world. The ICCR member organizations manage over $100
billion in assets and they sponsor major shareholder resolutions
on social and environmental issues.
Even if an individual is not an investor, the SRI movement helps
to inform us as consumers. Due to investor pressure, there is an
enormous amount of public information available on corporate ethics
and behavior, which might influence your decision-making when you
are planning a purchase. This information can also be used to try
and influence the companies you normally support. For example, if
you are PetroCan cardholder, you can approach them as a loyal customer
and express your concerns about their financial involvement in Libya.
There are many levels of commitment to SRI and most individuals
and organizations have a wide range of criteria that determine how
they will invest their money. Many investors have been unimpressed
with the return on SRI investments compared to other products, and
returns are usually the primary motivation for investment. SRI incorporates
a social return factor and many investors adjust their financial
expectations accordingly. Another frequent complaint about SRI or
ethical funds is that the mutual fund screening standards are too
low on some issues and many investors are disillusioned. Like any
social movement, SRI has its problems, but it also has its solutions.
It is possible to develop a strategy based on each individual's
values, and it includes the decision-making processes and due diligence
of standard investment management.
The Social Investment Organization (www.socialinvestment.ca)
in Canada has been a starting point for many, and they provide basic
information on SRI, as well as referral for SRI advice and products.
The Social Investment Forum (www.iccr.org)
is a well-developed U.S. organization with an enormous amount of
information. Following are some other web sites that can help readers
choose investment opportunities.
www.rj.org/uahc/dallas/areso/social.html
www.rac.org/issues
www.socialinvestment.ca
www.iccr.org
www.responsibleshopper.com.
Maryellen Polikoff is an investment advisor and professional
financial planner with Canaccord Capital. She specializes in socially
responsible investing.
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