As a faith-based organization, Eder screens out investments to conform to its organizational values. Screening is one of three components that compose what we call Eder Values Investing.
A second component of EVI is the ability of our members to invest in a community development fund, which according to Organizational Investing Director Dan Radcliff, “… manifests stronger opportunities for self-care, community building, neighborhood revitalization, and continued care for Creation."
The third prong of EVI is the advocacy work Eder performs to help bring about positive change in the business world.
Advocacy can be broken into three parts – dialog, letter writing, and shareholder voting.
For more than a decade, Eder Financial has been the lead shareholder in an initiative with ConocoPhillips. The dialog began when Eder filed a shareholder resolution to be addressed at the company’s annual shareholder meeting that encouraged the oil production firm to be considerate of indigenous people when drilling for oil, particularly in developing countries. ConocoPhillips representatives, an Eder representative, and a member of the Boston Common Asset Management firm subsequently began the conversation, which continues twice a year, in March and September.
Has the dialog been successful? Absolutely. ConocoPhillips eventually signed on to the United Nation’s Declaration on the Rights of Indigenous Peoples and has continued meeting with Eder, Boston Common, and other members of the Interfaith Center for Corporate Responsibility to address the company’s practices on human rights and environmental concerns as it works around the world.
The second part of advocacy is letter writing, sending letters that ask companies to either adopt a practice that we think would be beneficial to society, or to stop a practice that we think is hurting society. Often these letter writing campaigns are coordinated by social investing organizations like ICCR, and many organizations end up lending their names to the letter to help show the widespread concern for that particular issue.
The third part is shareholder voting. Through its management of money for Organizational Investing clients, Eder owns stock in more than 500 companies. Each company has its own annual shareholder meeting, and one of the agenda items of the meeting is voting on issues related to the running of that company. For example, the ballot at the recent Nike shareholder meeting included voting on potential board members, executive officer compensation, and the company’s independent auditor. Shareholder proposals on the ballot included issues that dealt with gender and racial pay gaps, human rights and supply chain management, and environmental performance targets.
Through its right to vote as shareholders for each of the more than 500 companies, Eder seeks to have firms world-wide give their executives a reasonable amount of compensation, to have the firm’s board composition reflect gender and ethnic diversity, and to champion improving human rights and environmental practices.
Yes, the funds we manage on behalf of your organization and the other firms we work with are invested with the intent on growth. But, at the same time, they also are invested to make a positive impact on the business world.
