GuideStone Financial Resources Faces Dilemma in Balancing Religious Commitments with Financial Obligations
The retirement and benefits agency for the Southern Baptist Convention, GuideStone Financial Resources, grapples with the challenge of aligning its religious values with its financial decisions.
GuideStone Financial Resources, the retirement and benefits agency for the Southern Baptist Convention (SBC), recently announced a new contract with the Global Methodist Church, a breakaway denomination. This partnership highlights the larger dilemma faced by GuideStone, as it strives to balance its religious commitments with its financial obligations. The agency’s choice between maximizing returns and adhering to values-based investing has sparked debate and raised questions about the compatibility of faith and finance.
Proxy Voting and Misalignment with SBC Values
GuideStone’s investment arm, authorized to vote on behalf of the agency, faced a challenge when pro-abortion rights proposals came up for vote. Despite the strong anti-abortion stance of the Southern Baptists, 57% of GuideStone’s proxy votes on various pro-abortion rights proposals were in favor. This misalignment between proxy votes and SBC values prompted GuideStone to change its policy, giving it more control over its proxy votes to ensure greater alignment with SBC convictions.
The Dilemma of Values-Based Investing
GuideStone, as a religious nonprofit that offers “faith-based investing” services, must constantly navigate the tension between industry best practices and conservative Christian orthodoxy. The agency screens investments for involvement in industries such as alcohol, tobacco, gambling, pornography, and abortion. However, companies that do not exist solely for these purposes, even if they have policies sympathetic to these social issues, are not excluded. This balancing act requires GuideStone to make choices that are both financially sound and in line with its religious values.
The Larger Debate over ESG Investing
GuideStone’s struggle to balance financial returns and religious values mirrors the larger debate over ESG (environmental, social, and governance) investing. ESG emphasizes investments in eco-friendly and socially conscious companies but has faced pushback from conservatives. Laws and policies aimed at curbing ESG have been enacted in some states, highlighting the tension between prioritizing financial returns and considering other societal priorities.
The Responsibility of Investment Managers
The primary responsibility of investment managers is to maximize clients’ returns, a standard known as “prudence.” Other considerations, such as religious beliefs in GuideStone’s case, are seen as secondary. While faith-based nonprofits like GuideStone have more leeway to prioritize religious beliefs due to exemptions from certain laws, their duty to generate returns for their clients still takes precedence.
Faith-Based Investing in the 21st Century
GuideStone’s commitment to faith-based investing is evident in its screening process, which cuts out investments in morally problematic industries. However, some of the companies in which GuideStone invests, such as Microsoft, Starbucks, and Disney, cover abortion-related medical services under their employee healthcare plans. This highlights the complexity of trying to align investments with biblical principles in the modern world.
GuideStone and the Global Methodist Church Partnership
GuideStone’s recent partnership with the Global Methodist Church, a breakaway denomination, demonstrates the agency’s appeal to a wider conservative base. Despite differences in views on women’s authority in the church, the Global Methodist Church chose to partner with GuideStone, recognizing its commitment to providing benefits aligned with their values. This partnership reflects a growing affinity among conservative Christians of different denominations.
Conclusion: GuideStone Financial Resources faces the ongoing challenge of balancing its religious commitments with its financial obligations. The agency’s proxy voting history and its approach to values-based investing have sparked debate and raised questions about the compatibility of faith and finance. As GuideStone navigates these complexities, its partnership with the Global Methodist Church highlights its appeal to a wider conservative base. Ultimately, the agency’s success lies in its ability to generate returns for its clients while upholding its religious values.