Acton Institute Powerblog

Christian Shareholder Activism: Good or Bad?

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Over the years, Acton commentators have had reason to criticize religious groups that try to influence corporate policy through shareholder resolutions and similar activities. The criticism has revolved around two points. One, Christian shareholder activism has often focused on issues that are matters of prudential application of moral teaching (e.g., environmental practices) rather than non-negotiable moral evils (e.g., abortion). Two, such activism often seems to imply, if not explicitly proclaim, that the normal operation of business is not adequately “good,” and that business must promote a series of programs extrinsic to its enterprise in order to prove its commitment to the common good.

But there may be a valid sort of shareholder activism, which does focus on non-negotiable moral evils. This kind of activism, far from obstructing the profitable operation of a beneficial enterprise, challenges businesses to practice trade in ways that promote rather than detract from the building of a healthy moral culture. Companies that provide or promote abortion or pornography, for example, while furnishing legally permissible services to customers, are not satisfying “genuine human needs” (see Robert Kennedy, The Good That Business Does). It is reasonable for Christians to exhort such businesses to shift from the provision of harmful products to the provision of “goods,” in the full sense of the term. That seems to be the motivation behind this recent press release, for example.

Kevin Schmiesing Kevin Schmiesing, Ph.D., is a research fellow for the research department at the Acton Institute. He is a frequent writer on Catholic social thought and economics, is the author of American Catholic Intellectuals, 1895-1955 (Edwin Mellen Press, 2002) and is most recently the author of Within the Market Strife: American Catholic Economic Thought from Rerum Novarum to Vatican II (Lexington Books, 2004). Dr. Schmiesing holds a Ph.D. in American history from the University of Pennsylvania, and a B.A. in history from Franciscan University ofSteubenville. Author of Within the Market Strife and American Catholic Intellectuals, 1895—1955 (2002), he serves as Book Review Editor for the Journal of Markets & Morality. He is also executive director of CatholicHistory.net.

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