How Quakers Invest: A Guide to Ethical and Socially Responsible Investing
Quakerism is a faith-based community that emphasizes social responsibility, equality, and simplicity. It’s no surprise that these values also carry over into the way Quakers approach investing. Quakers believe that investing should align with their faith and values, and therefore, they have developed a unique approach to investing that emphasizes ethical and socially responsible investing. In this article, we will explore how Quakers invest and the principles that guide their investment decisions.
What is Quakerism?
Quakers believe that all aspects of life should be lived in accordance with their faith and values. Therefore, investing is no exception. Quakers have a long history of being socially responsible investors, dating back to the 18th century. In fact, Quakers were some of the first investors to divest from the slave trade.
The principles that guide Quaker investing are rooted in their faith and values. Quakers believe that investing should align with their principles of simplicity, integrity, community, and equality. Quakers also believe that investing should not harm the environment or contribute to social injustice.
Quakerism and Investing
Quakers believe that all aspects of life should be lived in accordance with their faith and values. Therefore, investing is no exception. Quakers have a long history of being socially responsible investors, dating back to the 18th century. In fact, Quakers were some of the first investors to divest from the slave trade.
The principles that guide Quaker investing are rooted in their faith and values. Quakers believe that investing should align with their principles of simplicity, integrity, community, and equality. Quakers also believe that investing should not harm the environment or contribute to social injustice.
Quaker Investment Principles
- Simplicity: Quakers believe in living a simple life, and this principle carries over into their investment philosophy. Quaker investments are often straightforward and easy to understand. Quakers believe that complicated investments can lead to unethical behavior and can be harmful to the environment and society.
- Integrity: Quakers believe in acting with integrity in all aspects of life, including investing. Quakers are committed to investing in companies that are transparent and have high ethical standards. Quakers also believe in engaging with companies to encourage them to improve their social and environmental practices.
- Community: Quakers believe in the importance of community and working together towards common goals. Quaker investments often prioritize community development and support local economies. Quakers also believe in investing in companies that treat their employees well and have a positive impact on the communities in which they operate.
- Equality: Quakers believe in the equality of all people, and therefore, they prioritize investments in companies that promote diversity, equity, and inclusion. Quakers also believe in avoiding investments in companies that engage in discriminatory practices.
Quaker Investment Strategies
- Socially Responsible Investing: Quakers often practice socially responsible investing, which involves investing in companies that are aligned with their values and beliefs. Socially responsible investing can involve avoiding investments in companies that engage in activities that are harmful to the environment or society, such as the production of tobacco or firearms. Socially responsible investing can also involve investing in companies that are leaders in social and environmental practices.
- Impact Investing: Quakers also often practice impact investing, which involves investing in companies or organizations that have a positive impact on society or the environment. Impact investments are often made in areas such as renewable energy, affordable housing, and community development.
- Shareholder Engagement: Quakers also engage with companies in which they invest to encourage them to improve their social and environmental practices. Shareholder engagement can involve attending shareholder meetings, submitting shareholder proposals, and engaging in dialogue with company executives.
- Divestment: Quakers also practice divestment, which involves selling investments in companies that are engaged in activities that are harmful to the environment or society. Divestment can also be used as a tool to advocate for change, such as divesting from fossil fuel companies to pressure them to transition to renewable energy.
Case Study: The Friends Fiduciary Corporation
The Friends Fiduciary Corporation (FFC) is a Quaker-affiliated organization that provides investment services to Quaker meetings, churches, and organizations. FFC is committed to investing in a socially responsible and environmentally sustainable manner. FFC’s investment approach is guided by Quaker values and principles, and they have developed a unique approach to investing that aligns with their mission.
FFC’s investment approach is grounded in the following principles:
- Values-Driven: FFC’s investments are guided by Quaker values and principles, including simplicity, integrity, community, and equality. FFC seeks to invest in companies that align with these values and avoid investments in companies that engage in activities that are harmful to the environment or society.
- Active Ownership: FFC believes in the importance of engaging with companies to encourage them to improve their social and environmental practices. FFC engages with companies through dialogue, proxy voting, and shareholder resolutions.
- Positive Impact: FFC seeks to invest in companies and organizations that have a positive impact on society and the environment. FFC invests in areas such as renewable energy, affordable housing, and community development.
- Responsible Stewardship: FFC is committed to being a responsible steward of its investments. FFC seeks to invest in a manner that is financially sustainable and environmentally responsible.
FFC’s investment portfolio includes a mix of public equities, fixed income securities, and alternative investments. FFC has a rigorous screening process for its investments, which includes an assessment of environmental, social, and governance (ESG) factors. FFC also engages with companies in which it invests to encourage them to improve their ESG practices.
Summary of How Quakers Invest
Quakers have a unique approach to investing that is guided by their faith and values. Quakers believe that investing should align with their principles of simplicity, integrity, community, and equality. Quakers also believe in investing in a socially responsible and environmentally sustainable manner. Quakers practice strategies such as socially responsible investing, impact investing, shareholder engagement, and divestment to align their investments with their values.
The Friends Fiduciary Corporation is an example of a Quaker-affiliated organization that has developed a successful approach to investing that aligns with Quaker values and principles. FFC’s investment approach is grounded in values-driven investing, active ownership, positive impact, and responsible stewardship.
Quaker investing provides a model for socially responsible and environmentally sustainable investing that can be adopted by investors of all backgrounds. By investing in companies that align with their values and beliefs, investors can help create a more just and sustainable world. Does this guide on how Quakers invest lean you toward a Quaker style investing methodology?
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