Unitarian Universalist Association
Investment Policies and Guidelines

Archived version: See current

APPENDIX A SOCIALLY RESPONSIBLE INVESTING GUIDELINES
VOTED BY THE BOARD OF TRUSTEES
APRIL 19, 1997

Aware of our obligation to be socially responsible in the management of the Association's investments, we are guided by our Principles and Purposes, and specifically with a commitment to "affirm and promote the inherent worth and dignity of every person," and to further our commitment to fully embrace and proactively step toward becoming an anti-oppression and anti-racism multicultural organization, as set forth in the bylaws and by resolutions adopted by the General Assembly, the requirements of fiduciary law and this policy, bearing in mind that our main purpose in this regard is investment, not advocacy. We are also mindful that what we do may have symbolic significance beyond the acts of purchase, retention, or sale of a particular security and beyond the impact that such action may have on the company issuing the security.

We undertake the investment management process recognizing that our responsibility does not end with maximizing return and minimizing risk. Further, we recognize that economic growth can come at considerable cost to community and the environment.

We believe that efforts to mitigate environmental degradation, address issues of social justice and promoting community development will be successful to the extent they are successfully brought into consideration as a part of our investment decision making.

We recognize that addressing such concerns while pursuing financial objectives is an imperfect process. However, we believe that development of healthier corporate cultures, and through them a healthier, sustainable economy, depends on the recognition of these concerns by management, directors, employees and investors.

We believe that in light of the social, environmental and economic challenges of our time, fiduciary responsibility in the coming decades will dictate the integration of prudent financial management practices with principles of environmental stewardship and corporate citizenship.

Social Responsibility concerns affect the UUA as they do every charitable, educational or religious institution as to the manner in which invested assets are dealt with. The practical alternative choices are:

Establish a set of social and ethical criteria and select conventional securities
which meet those criteria.

Facilitate shareholder activities directed toward corporate social responsibility.

Promote social goals in a more direct fashion by investing in securities of enterprises specifically committed to social change. This approach is being followed, in a limited fashion, by maintaining bank deposits and / or certificates of deposit in minority controlled banks or community development loan funds.

UUA investments will be consistent with these Socially Responsible Investing Guidelines, which at the present time preclude investments in entities that derive the preponderance of their income from defense-related activities, the production of weapons, or are engaged in the manufacture or sale of tobacco-based products. In addition, to the extent possible for the Committee to monitor and enforce, the UUA will not invest in firms that engage in practices dangerous to the environment or in business practices that disregard the rights of their employees.

Companies whose securities we hold in our portfolios shall be assessed to determine that:

They are not engaged in the manufacture of tobacco based products

With respect to defense-related activities, that they do not earn more than 5% of their revenue from the production and sale of weapons or, they are not listed as one of the top 100 Department of Defense military contractors

They are not firms that are identified by accredited socially responsible investment groups as behaving in a clearly blatant fashion with respect to the treatment of employees, or as being discriminatory in their employment practices

They are not firms that are identified by accredited socially responsible investment groups as behaving in a clearly blatant discriminatory fashion with respect to their treatment of the environment

There may be investments that should be held or sought from time to time by the UUA in an effort to provide an opportunity for dialogue between the UUA as a shareholder and the management of corporations whose products, services and / or management policies are at variance with the ethical and social concerns of the Association. The Investment Committee may take such action as it deems appropriate in this connection. Should the administration or the Board of Trustees believe action of this nature is called for, the Board may direct the Investment Committee accordingly.

The Treasurer, on behalf of the Association, will proactively exercise our commitment to these practices using as a guide information provided by the Interfaith Center on Corporate Responsibility, the Investor Research Responsibility Center, through Proxy Monitor Institutional Shareholder Services, or other accredited socially responsible investment groups, in the voting of proxies: in favor of environmental reform and reporting on environmental performance in annual reports; on requiring fuller reporting on equal employment opportunity and affirmative action policies; and in support of broader multicultural representation on boards of directors, with special focus on women and people of color.

The UUA's booklet Investing for Justice, Socially Responsible Investments for Unitarian Universalist Congregations, is under consideration for updating which when complete will be available through the UUA Bookstore. However, the following listing may be of interest to those in search of additional resource materials.

Supplement - Organizations Providing Social
Investment Research & Shareholder Activism

Archived version: See current

Unitarian Universalist Association
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