Having a Seat at the Table
Faith-based investing is often associated with avoiding certain industries or prioritizing companies that align with specific values. But an equally powerful—and perhaps less visible—tool in this space is shareholder advocacy. Rather than simply divesting from companies that fall short of biblical standards, some faith-driven investors choose to engage from within, using their influence as shareholders to drive meaningful change.
This approach reflects a belief that businesses are not static; they can evolve. Through advocacy, investors act not only as financial stewards but also as agents of redemptive change, encouraging companies to align more closely with ethical and faith-informed principles.
What Is Shareholder Advocacy?
Shareholder advocacy is the practice of using ownership in a company to influence its behavior, policies, and governance. By holding stock, investors gain voting rights and a seat at the table. This position allows them to:
- File shareholder resolutions to address specific concerns such as environmental impact, human rights, or governance.
- Engage in direct dialogue with corporate leadership to voice ethical or operational concerns.
- Vote on company policies and board elections, aligning governance with values-based objectives.
This strategy shifts the conversation from one of avoidance to one of active engagement. It views investing not just as a financial transaction, but as a relational and moral opportunity to bring about corporate transformation.
A Biblical Basis for Advocacy
Scripture is filled with examples of faithful individuals standing up for justice, speaking truth to power, and influencing systems from within. Think of Joseph advising Pharaoh, Esther advocating for her people, or Daniel operating with integrity within the Babylonian court. These examples show that faithful presence within secular institutions can lead to real transformation.
Proverbs 31:8-9 instructs us to “Speak up for those who cannot speak for themselves… defend the rights of the poor and needy.” Shareholder advocacy provides a practical means to do just that in the business world—amplifying the concerns of marginalized people or neglected issues.
Micah 6:8 reminds us that God requires us to “act justly, love mercy, and walk humbly.” Advocating for ethical labor practices and transparent governance aligns with this triad of biblical justice.
Why Not Just Divest?
Divestment is sometimes necessary, especially when a company shows no willingness to change or is involved in activities clearly at odds with biblical values. However, divestment ends the conversation. Advocacy, on the other hand, starts one.
By maintaining a seat at the table, faith-based investors can:
- Encourage progress rather than demand perfection
- Leverage their influence for reform, not just rejection
- Foster relationships that lead to greater long-term impact
The Apostle Paul reminds us in Galatians 6:9, "Let us not grow weary of doing good, for in due season we will reap, if we do not give up." Change is often slow, but persistent, faithful engagement can lead to lasting fruit.
Forms of Shareholder Advocacy
1. Filing Shareholder Resolutions
Faith-based fund managers may draft formal proposals for vote at a company’s annual meeting. These resolutions often address issues such as:
- Supply chain ethics
- Carbon disclosure
- Political lobbying transparency
While not always legally binding, these resolutions draw attention, spark internal discussions, and can lead to voluntary changes.
2. Corporate Engagement
Sometimes the most powerful influence comes through private dialogue. Investors can request meetings with company executives to:
- Express concerns about current practices
- Share research and recommendations
- Collaborate on strategies for improvement
These behind-the-scenes conversations are often more effective than public pressure, fostering mutual respect and trust.
3. Proxy Voting
Every shareholder has the right to vote on key issues, including board elections, mergers or acquisitions. Faith-based investors can align their voting with biblical principles, ensuring their voice is heard even when their share count is small.
Real-World Impact of Shareholder Advocacy
Over the past two decades, shareholder advocacy has driven significant change. Companies have adopted new human rights policies after pressure from values-based shareholders. Environmental disclosures have improved as a result of faith-driven resolutions.
These successes show that advocacy is not just symbolic—it’s strategic. When faith-based investors act together, their voice can be a catalyst for reform.
The Role of Stewardship
At its core, advocacy is an act of stewardship. God entrusts us with influence, and we are called to use it wisely. 1 Peter 4:10 reminds us, "Each of you should use whatever gift you have received to serve others, as faithful stewards of God's grace in its various forms." The same is true of the ownership we hold in businesses. Advocacy channels that ownership into service.
Advocacy also reflects hope. It acknowledges that people and institutions can grow. It refuses to give up on the potential for redemption, even in the complex world of corporate enterprise.
Getting Started with Advocacy
Faith-based investors interested in shareholder advocacy can:
- Join or support organizations that file resolutions aligned with biblical values
- Partner with fund managers who actively engage companies
- Review proxy voting records to ensure they reflect faith-driven principles
- Pray for corporate leaders to act justly and wisely
This is not reserved for large institutions—anyone who owns even a single share has the right to advocate. Like the widow’s mite, small voices can have big impact when faithfully offered.
Conclusion: Influence from Within
Shareholder advocacy offers a compelling complement to the more well-known strategies of faith-based investing. It turns capital into a conduit for change, allowing investors to live out their convictions through thoughtful engagement.
In a marketplace often driven by profit at all costs, advocacy brings a different voice—one rooted in justice, humility, and redemption. It reminds us that our role as investors is not just to choose where money goes, but to influence what it grows into.
By staying in the conversation, faith-based investors can be salt and light in the corporate world—shaping companies to reflect values that honor God and serve people well.