When most people think about faith-based investing, they think about avoiding certain companies or industries. While screening is an important part of many faith-based investment strategies, it is only part of the story.
Many faith-based funds also engage companies as shareholders, seeking positive change through ownership and influence. Through shareholder engagement, proxy voting, and dialogue with corporate leadership, these funds attempt to encourage policies that align more closely with their values.
Below we explore some common questions about how this process works.
Isn't faith-based investing just about avoiding certain companies?
Nearly all faith-based funds employ some form of screening. While the specific screens differ by fund company, common exclusions may include businesses involved in abortion, pornography, tobacco, gambling, and alcohol.
What many investors don't realize, however, is that numerous faith-based fund companies also engage with the companies they own. Rather than simply avoiding businesses they disagree with, they seek opportunities to encourage positive change where influence is possible.
What is shareholder engagement?
Because fund companies act on behalf of their shareholders, they can engage with corporate leadership in several ways.
These efforts may include:
- Meeting with management teams
- Voting proxies
- Filing shareholder resolutions
- Engaging in dialogue with company leadership
The goal is to encourage policies and practices that better reflect the values and concerns of shareholders.
Why would a faith-based fund engage a company instead of simply avoiding it?
Ownership carries influence.
Many faith-based fund managers believe stewardship involves more than deciding what not to own. Ownership provides an opportunity to engage with management, advocate for positive change, and encourage policies that support religious liberty, human dignity, and ethical business practices.
If every company with imperfections were automatically excluded, there would be little opportunity to influence corporate behavior. Engagement allows investors to have a voice where they have ownership.
Can faith-based funds really influence large corporations?
Individual investors typically have very little influence on a large public company.
However, faith-based funds often represent thousands of investors and millions of dollars in assets. When fund managers engage companies, file shareholder proposals, or participate in discussions with leadership, their voice can carry significantly more weight than that of a single investor.
While engagement does not always produce change, there are occasions when it leads to meaningful results.
Have faith-based funds actually influenced companies?
AT&T
A shareholder proposal was filed for AT&T's 2026 annual meeting by Bowyer Research, which conducts engagement and proxy voting work for certain faith-based funds. The proposal requested that AT&T publish an annual report regarding its charitable contributions.
During discussions surrounding the proposal, AT&T discovered that its charitable giving platform, Benevity, had been filtering out certain conservative and religious nonprofits using the Southern Poverty Law Center's "hate group list."
After reviewing the issue internally, AT&T asked Benevity to disable the filter, helping ensure that legitimate faith-based organizations would not be excluded from its matching gift program.
Lockheed Martin
Bowyer Research also engaged Lockheed Martin regarding charitable giving policies and whether faith-based organizations were being treated fairly within the company's donation and matching gift programs.
During those discussions, Lockheed Martin indicated that its charitable giving processes did not rely on "hate group lists." Company leadership demonstrated that employees could receive matching gifts for donations made to churches and other faith-based organizations.
These examples illustrate how engagement can create dialogue and occasionally lead to policy changes that benefit employees and charitable organizations alike.
Does shareholder engagement always work?
Absolutely not.
Some companies are unwilling to engage. Others may listen but ultimately choose not to make changes. In fact, many engagement efforts do not produce the desired outcome.
However, successful engagements can have meaningful impacts. Even when immediate change does not occur, engagement often creates dialogue, raises awareness, and gives shareholders an opportunity to communicate their concerns.
What does this mean for Christian investors?
Faith-based investing is often viewed primarily through the lens of avoiding certain companies or industries.
While screening remains an important part of many faith-based investment strategies, some faith-based fund managers believe stewardship extends beyond avoidance. Through shareholder engagement, proxy voting, and constructive dialogue, they seek to use ownership as an opportunity to encourage positive change.
For Christian investors, understanding both screening and engagement provides a more complete picture of how faith-based investing works.