Investing with Virtue
Questions often come up about how to invest money from a Biblical viewpoint. I found the article below helpful, but invite NVL members to respond by commenting on this article:
How to be in the world but not of it as we grow our money
One of the issues I am most frequently asked to address with Christian clients deals with investments from a moral standpoint. Many wonder if so-called "virtue" funds or "socially responsible" funds provide Christian investors with security that their investments are compatible with their value system.
We must not paint with too broad a brush, as these so-called funds do not all look or function the same. Many "socially responsible" funds simply focus on environmentally friendly companies, and my research has led me to conclude that the vast majority of "socially responsible" funds are simply disguised "green" funds.
Indeed, one of the very tricky parts of this whole subject is defining what is "virtuous" and what is "socially responsible." Many Christians may choose to avoid stocks that deal with alcohol, while the consciences of others would not feel burdened by such an issue. I want to lay out the principle that Paul called "being in the world, not of the world."
We cannot deny that we have residency here on planet Earth. Indeed, God has called us to occupy and inherit the world, "making disciples of all the nations" (Matthew 28:19). In Paul's exhortation, the clear inference is that contact and association with the world is (to a large degree) impossible to avoid. We need to live differently, being of the Spirit and not of the flesh (Galatians 5:16-18).
However, when a Christian proposes that believers are not to own a stock or bond from a company that may have some involvement in things we do not believe in, a very difficult proposition is being implied. It essentially calls for Christians to flee the world altogether, for certainly this view of commerce is impossible to apply apart from a complete tribal separation from the very marketplace itself.
For example, suppose a Christian finds ABC company, which he believes has policies and values that are compatible with his criteria for investing. Is that Christian investor aware of all the vendors ABC company purchases from? Is he to be aware of the policies and values of all their customers, partners, shareholders, and banks? What if ABC company works with XYZ company, and XYZ company works with 123 company, and 123 company works with a bank that has policies and values outside of that investor's preferences? My point is this: It is not possible to vet these considerations the way many Christians feel that they should, even if they wanted to.
None of this is to suggest that Christians should invest in any vehicle they desire, without restriction. Romans 14 is clear that doubt and conscience must be considered. However, I believe an informed conscience will recognize the practicality of "moral proximity." If a local strip club owner asks you to invest with him, it is something as proximate as can be that you can (and must) decline to do.
However, if you own a 401(k) plan that owns a mutual fund that owns 1 percent of the stock of Amazon.com, and Amazon has books for sale that you find objectionable, there is a large enough gap between your investment and the undesirable activity that it seems very reasonable and permissible (some may call it "degrees of separation").
I am often confused by the logic that states Christians cannot invest in certain companies but they may patronize them as consumers. When you own stock in a company, you are not giving money to the company itself—you bought it from another private party who owned it. However, when you buy a cheeseburger from McDonald's, the money goes straight into their cash register. Are we to say the latter is acceptable, but the former is not?
I believe that virtuous investing avoids legalism and impossible expectations. If specific stocks and bonds bind your conscience, they can certainly be avoided. But along the way, remember that we are "in the world, though not of it." This reminder was given us by Paul for a reason, and we must apply it with the wisdom that is from above.
By: David Bahnsen
Source: World Magazine
Nathan Serven June 22, 2008
I greatly appreciate the thoughts developed in this article. I have on many occasions wondered how to answer this common objection. The clarity with which Mr. Bahnsen addresses the relevant issues relating to Christians and investing was very helpful.
Nathan Wenneker June 22, 2008
I am not well-educated on stocks, mutual funds, or investing per se, but in an effort to help each other find what is most pleasing to the Lord, please allow me to submit some thoughts for your consideration. Also, please feel free to help me recognize and understand errors in my thoughts:
1. Ownership of something implies responsibility and liability. (see Exodus 21:28-36)
2. Ownership of a stock is a form of ownership of a company.
3. It seems that choosing to own stock in a company is making a vote for its existence and most probably means you hope and pray it will be successful in its endeavors to make a profit. (Consider whether Proverbs 1:10-19 applies)
4. Exchanging money for goods and services of perceived equal or greater value (i.e. purchasing a cheeseburger) is quite different from part ownership and investment. The degree of "yoking" is not comparable. One is ownership, one is not. God commanded the Israelites to purchase food from the nation of Esau (see Dueteronomy 2:6)
5. True, purchasing stock from a company does not put money directly in their pockets, but the fact that you bought stock at a certain price does add credence to the perceived value of their stock within the market, and in a very real sense, provides economic gain to them.
6. The idea of "proximal" may have merit, but in a different sense. The issue is not how far you are from the objectionable actions, the issue is whether your actions condone or support the objectionable actions in any way.
Would I invest in a strip club? No.
Would I invest in a janitorial service 80% of whose clients are strip clubs? No, this directly and specifically aids the strip club in its objectionable operation.
Would I invest in a janitorial service 1% of whose clients are strip clubs? No, same as above. the percentage is not the problem, the principle is the problem.
Would I invest in a company that sells janitorial supplies to multiple companies including the one above? Perhaps. Here, supplying general goods/services does not directly support the strip club. You do not know how someone who purchases your goods will use them, and you are not responsible or "yoked".
Consider that the Lord permitted the nation of Israel to sell unclean food to an alien. (Dueteronomy 14:21)
Would I invest in a 401k that owns Amazon stock? No, this still directly owns and supports objectionable actions (e.g. the sale of some unwholesome books)
7. Why don't we invest in visionary Christian brothers with business ideas without compromises? Is the goal solely to make profit, or is the goal to use your finances to support a worthy cause with a good conscience?
8. Yes, we must be in the world, not of the world, but also remember "it is impossible but that offences will come: but woe unto him, through whom they come!"
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