With the rising popularity of socially responsible investing, christian investing has become an important approach for faith-based investors to make investment decisions in line with their religious values. However, figuring out how to invest in a truly christian way can be very challenging, especially when it comes to avoiding certain types of unethical companies. In order to invest in a christian manner, investors need to have a deep understanding of biblically responsible investing principles and criteria. They also need to carry out thorough research on target companies across various christian values and ethical screens. By leveraging resources like christian investment research firms and faith-based funds, christian investors can build portfolios that align with their faith and make a positive impact. This article will provide key guidance and conclusions on how to invest christianly and avoid companies against christian values across major areas of concern, helping christian investors integrate their faith with investing in a thoughtful manner.
Avoiding sin stocks is essential in christian investing
One of the fundamental principles of christian investing is to avoid sin stocks, which refer to publicly traded companies involved in practices considered unethical or immoral from a christian perspective. Some of the most prominent sin stocks christian investors seek to avoid include tobacco, alcohol, gambling, pornography, abortion and embryonic stem cell research firms. For instance, dedicated faith-based funds like the Timothy Plan family of funds thoroughly screen out all these major sin stocks. Investing in such sin stocks directly contradicts christian values, so this avoidance approach allows christian investors to align investments with their biblical beliefs. In addition to avoiding direct investment, christian investors may also engage in advocacy by submitting shareholder resolutions and using proxy votes to influence sin stocks towards more ethical practices.
Christian investors tend to exclude weapons and defense stocks
Another significant area of avoidance for christian investors is companies involved in weapons production and distribution, which usually fall under the defense/aerospace industry. Most christian investors avoid investing in firms like gun manufacturers due to the contradiction with biblical teachings on violence and peace. However, some more flexible christian investors may be open to investing in firms mainly focused on defense and national security contracting, as protection can be viewed as a necessary evil. Overall, a nuanced screening process examining the specific activities and business focuses of weapons companies is important for christian investors seeking to optimize their biblically-aligned investment portfolios.
Screening out anti-family entertainment and media stocks
Besides sin stocks, christian investors also pay close attention to the screening of stocks in the media and entertainment space that promote gratuitous violence, sexual immorality and the occult. This helps avoid companies generating profits through content that contradicts with christian family values. For instance, faithful 100 funds blacklist companies involved in the production of adult entertainment, violent video games and books/movies focused on the occult. Detailed analysis of the specific products and services of media and entertainment firms is crucial for christian investors seeking to live out their values. However, some flexibility can be allowed for firms only partially exposed to objectionable content.
Environmental and social screens based on stewardship principles
While avoidance screens are critical, christian investing also involves applying positive environmental, social and governance (ESG) screens rooted in biblical stewardship principles. For example, christian investors would favor firms pursuing renewable energy over fossil fuels to be good stewards of God’s creation. They would also avoid exploitative labor practices and favor good community relations based on biblical teachings to look after the poor and marginalized. Leading christian investment research firms like Azzad Asset Management provide faith-based investors with ESG rankings to identify companies demonstrating ethical leadership and stewardship. Integrating biblical ESG screening alongside avoidance screens allows christian investors to fully align investments with their faith-based worldview.
Community investing consistent with christian generosity
An important part of living out christian values in investing includes community investing funded by capital from christian investors. By directing investment into nonprofit organizations, affordable housing, microfinance and small business creation in economically disadvantaged communities, christian investors can earn modest returns while also expanding opportunities for the poor. This reflects the biblical encouragement for generosity, justice and community development. Leading christian investment firms like Praxis Mutual Funds offer specialized impact investing options as an avenue for christian investors to love their neighbors through investing. Though community investing options are limited, they remain an innovative way for christian investors to do good while also earning returns.
In summary, christian investing requires a thoughtful approach of screening out stocks violating Christian values across areas like sin stocks, weapons, unethical media while also seeking out investments aligned with Biblical stewardship and generosity principles. By leveraging faith-based investment research and fund options while also thoroughly examining target firms, christian investors can build portfolios reflecting their religious beliefs. With the growth of impact investing, there is now an expanding range of avenues for christian investors to honor God with their money while upholding moral integrity.