What does it mean for a company to align with Christian values? This question sits at the heart of the Capstone Biblically Informed Canadian and U.S. Equity Funds' investment approach.
This article provides educational information about evaluating Christian values in business. It does not constitute investment advice.
Beyond Simple Exclusions: A Positive Vision
Christian values in business involve more than avoiding problematic activities. Capstone's approach seeks companies that contribute positively to human flourishing.
Scripture calls believers to seek justice, love kindness, and walk humbly with God (Micah 6:8). Applying these principles to business means looking for companies whose operations reflect these values through how they treat people, steward resources, serve communities, and conduct themselves in the marketplace.
No company operates perfectly, and some operate within regulatory environments that are less than ideal. The biblical research process acknowledges these realities while maintaining standards for what qualifies as alignment with Christian values. Capstone seeks companies that are at least morally neutral and ideally aligned with biblical values such as justice, integrity, and humility.
The Four Guiding Investment Principles
Principle One: Valuing Human Life
This principle examines whether companies demonstrate consistent respect for the dignity and worth of every human being, regardless of race, religion, gender, ability, or stage of life.
Companies demonstrating this principle treat employees with dignity, maintain safe working conditions, prohibit discrimination and harassment, and respect workers' right to fair treatment. They avoid business models that exploit human vulnerability or profit from activities that harm human dignity.
The biblical research analyst examines workplace culture, workplace safety records, and supply chain practices to assess whether companies demonstrate sufficient respect for human dignity.
Principle Two: Stewarding Creation Responsibly
This principle looks beyond simply avoiding environmental harm to seeking companies demonstrating genuine commitment to stewardship of God's creation.
The biblical research evaluates whether companies use resources responsibly, minimize unnecessary environmental impact, and demonstrate commitment to sustainable practices appropriate to their industries. This doesn't mean all companies must be environmental pioneers. It means companies should show reasonable stewardship given their business contexts.
The principle includes both preservation and development. Companies developing more efficient technologies, creating products that serve genuine needs, or finding ways to do more with less demonstrate positive stewardship.
Principle Three: Encouraging Human Flourishing
This principle evaluates whether companies contribute positively to the physical, emotional, and spiritual wellbeing of individuals and communities.
Businesses should foster environments that support human flourishing and self-control rather than exploit weaknesses or encourage harmful behaviors. The research examines business models, products, services, and corporate practices through the lens of whether they serve genuine human needs or exploit human vulnerability.
Companies whose success depends on encouraging unhealthy or destructive behaviors face exclusion, while businesses genuinely serving people well demonstrate positive alignment.
Principle Four: Applying Biblical Wisdom
This principle seeks companies whose values, culture, and business practices align with principles rooted in Scripture.
Companies aligning with this principle operate with integrity. They tell the truth to customers, investors, and regulators. They fulfill commitments and deal honestly in all business relationships. When mistakes occur, they take responsibility and make amends.
The research evaluates whether companies demonstrate moral clarity in their business decisions and corporate communications. Companies should operate in ways that don't contradict Christian principles and ideally demonstrate values such as justice, kindness, humility, and integrity.
The Research Process
Applying these Four Guiding Investment Principles requires systematic analysis of corporate behavior.
- Public Disclosures: The biblical research analyst examines securities filings, annual reports, sustainability reports, corporate websites, and public statements.
- Third-Party Research: Brightlight Impact performs analysis in addition to Capstone's research to provide support to the decision-making process, ensuring multiple perspectives examine companies from a biblical values standpoint.
- Industry Context: Research considers industry contexts when evaluating companies. Different industries face different challenges and opportunities for demonstrating Christian values.
- Ongoing Monitoring: Capstone's dedicated biblical research analyst continuously monitors portfolio holdings for corporate actions, policy changes, or business developments affecting values alignment.
- Revenue Analysis: The research examines what companies profit from (their revenue sources and business models) and considers whether concerning revenue represents a small peripheral activity or a significant business component.
The BIO Committee: Governance and Accountability
The Biblically Informed Oversight Committee provides essential governance for all stock selections.
Four members with 100+ years of combined investment experience review and vote on all stock selections from a biblical perspective. One independent member external to Capstone provides additional perspective.
Research compiled by Capstone's biblical research analyst is submitted to the BIO Committee for evaluation. Each potential holding receives thorough consideration before any voting occurs.
The committee structure ensures biblical research isn't determined by a single individual's interpretation. Multiple experienced perspectives evaluate each decision.
Gray Areas and Transparency
Not all situations present clear-cut answers. Some companies fall into gray areas requiring nuanced judgment. Companies may have some activities aligning well with Christian values while others create concerns. Companies transitioning away from problematic business lines require careful evaluation about timing and trajectory.
These gray areas demonstrate why human intelligence and experienced judgment matter in biblical research.
Capstone makes the Biblical Overlay Policy publicly available at capstoneassets.ca, providing transparency about the biblical research methodology and the Four Guiding Investment Principles.
Conclusion
Christian values in business means seeking companies that contribute positively to human flourishing through respecting human dignity, stewarding creation responsibly, encouraging healthy behaviors, and supporting biblically consistent practices.
The Capstone Biblically Informed Canadian and U.S. Equity Funds apply these Four Guiding Investment Principles through dedicated biblical research, BIO Committee governance, and partnership with Brightlight Impact.
For more information or to access the Biblical Overlay Policy, visit capstoneassets.ca or call 1.855.437.7103.
*Important Disclosures: Commissions, trailing commissions, management fees, and expenses may be associated with investments in mutual funds and exchange-traded funds. Please read the prospectus before investing. Mutual funds and ETFs are not guaranteed; their values change frequently, and past performance may not be repeated. The simplified prospectus, fund facts, and ETF facts are available on SEDAR+ at www.sedarplus.ca or consult with a registered investment dealer or advisor.