Economic Social Criteria Investment Screens
Church Council Actions
The Evangelical Lutheran Church in America (ELCA) gives expression to this church's concern for corporate social responsibility - both in its internal affairs and in its interaction in the broader society - through exercising its rights as a corporate shareholder on issues of social concern. This is accomplished through screening of stock ownership, casting of shareholder ballots, filing of shareholder resolutions, and dialogue with corporations to address these concerns. For churchwide units that are separately incorporated, the ELCA makes recommendations regarding shareholder action. Individual Lutherans may also apply this concern within their own portfolios.
In determining precise actions to take or recommend, the ELCA draws on the foundation of its social policy. This policy, consisting of social statements, messages, and Churchwide Assembly and Church Council social policy resolutions, reflects an understanding of this church’s social responsibility that includes theological, social, and ethical considerations.
Within this context, the concerns that are brought to the ELCA regarding corporate social responsibility are complex and actions are multi-dimensional. This church is assisted in its decision-making through the development of economic social criteria investment screens that guide this church in evaluating the types of investments it wishes to hold.
Economic social criteria investment screens provide a guide for this church with regard to corporate social responsibility. They delineate areas in which the ELCA would like to invest and provide criteria to evaluate the scope of the work. The objective of economic social criteria investment screens is to identify the dimensions of a given problem area, and within those dimensions, to focus on egregious problems that are most critical to address. All economic social criteria investment screens have the overall objective of addressing the ELCA’s concern for the social, environmental, and economic sustainability of corporations.
Economic social criteria investment screens do not constitute binding mandates or provide, for example, specific lists of corporations. It is the responsibility of each ELCA entity and individual Lutheran to develop and manage a prudent and responsible investment portfolio. The ELCA economic social criteria investment screens may offer a context for decision-making around socially responsible investments.
Development of Economic Social Criteria Investment Screens
1. When a major issue in society exists that involves the business community, it may be appropriate for the ELCA to develop an economic social criteria investment screen on the issue. An initial review of the issue will be explored by the Advisory Committee on Corporate Social Responsibility (ACCSR). If the committee feels it appropriate to move forward in the development of a screen, it will develop and oversee a study process. In order to ensure appropriate input, the following steps will be taken:
a. assessing the social policy basis to support a screen;
b. listening to the voices of those most vulnerable and negatively affected by the issue;
c. receiving comments from all entities (e.g. offices, program units, or staff) of the churchwide office that relate to this issue in their ongoing work;
d. encouraging participation by synods;
e. receiving comments from experts on the issue;
f. ensuring that minorities have opportunity to express their concerns;
g. receiving input from the ELCA Board of Pensions and the ELCA Foundation concerning specific fiduciary responsibility that might impact this economic social criteria investment screen;
h. hearing the concerns of other churches from around the world on the issue;
i. ensuring that the voices of those most affected by the issue are present at the table.
2. The results of this study process will be received by the ACCSR for review and discussion before moving forward. If the results indicate need for the church to develop an economic social criteria investment screen on the topic, the committee will develop a writing process to ensure the economic social criteria investment screen is consistent with the social policy of the church and can be implemented by fiduciaries within the church and its units. In order to ensure that appropriate input at this level occurs, the following steps will be taken:
a. assessing the social policy basis to support a screen;
b. listening to the voices of those most vulnerable and negatively affected by the issue;
c. receiving comments from all entities (e.g. offices, program units, or staff) at the churchwide office that relate to this issue in their ongoing work;
d. encouraging participation by synods;
e. receiving comments from experts on the issue;
f. ensuring that minorities have opportunity to express their concerns;
g. receiving input from the Board of Pensions and the ELCA Foundation concerning specific fiduciary responsibility that might impact this economic social criteria investment screen;
h. hearing the concerns of other churches from around the world on the issue;
i. receiving comments from a writer familiar with the ELCA and investment language;
j. ensuring that the voices of those most affected by the issue are present at the table.
3. A proposed economic social criteria investment screen will include the following:
a. Authority: a section that relates the issue to ELCA social policy;
b. Wording: a clear, succinct statement of the position of the church on the issue;
c. Definition: a section that places the issue in relation to the broader society, and indicates the scope, extent, or depth that the church feels necessary to implement the criteria.
4. Additional documents may be developed, including an implementation plan for informing the church of the screen, and suggestions about how to implement it. These would not be part of the actual economic social criteria investment screen document.
5. The proposed economic social criteria investment screen will be considered by the ACCSR for review and recommendation to the executive director of Church in Society for endorsement. Upon endorsement, the economic social criteria investment screen will be recommended to the Church Council for approval. The Church Council’s action may include recommendations concerning implementation. Any approved screen with accompanying recommendations will be posted on the ELCA web site and hard copies will be circulated to the following ELCA persons and entities: presiding and synodical bishops, Board of Pensions, Foundation, Mission Investment Fund, seminaries, colleges and universities, social ministry organizations, churchwide Cabinet of Executives, and separately incorporated churchwide organizations.
6. The economic social criteria investment screens will be reviewed at least every ten years by the ACCSR to ensure that the language is timely and the issues inclusive. Should the review process lead to a recommendation for a total revision of the economic social criteria investment screen, a more abbreviated form of the writing process would proceed. The review process, whether or not a revision is recommended, will result in a report by the ACCSR that will be submitted to the executive director of Church in Society and through the director to the Church Council. The report will be distributed to: the Corporate Social Responsibility Committee of the ELCA Board of Pensions; staff at the ELCA working with the issue in their portfolio; and others as appropriate. Staff may also initiate an earlier review of an economic social criteria investment screen in consultation with the ACCSR, utilizing the abbreviated writing process.
Approved by Advisory Committee on Corporate Social Responsibility – April 2006
Approved by Church Council – November 2006