Faith-based, biblically responsible investing is a unique approach to investing that seeks to glorify God as an act of worship and to promote Biblical values such as the sanctity of life, family, marriage, care for the poor, and care for creation.

Faith-based investing begins in the heart, with a Christian investor’s desire to steward the resources God has given in a way that aligns with God’s heart and priorities as revealed in the Bible.  Faith-based investing is also a way in which followers of Jesus can participate with God in bringing His Kingdom to bear on the world in anticipation of the New Heavens and New Earth. Our desire is to one day hear the Lord commend us with “Well done, good and faithful servant!”

An investor has three principal approaches for selecting investments for a faith-based portfolio. We can sum up these three ways with the words: Avoid, Embrace, and Engage.

Avoid

As faithful investors we seek to avoid companies whose products or services are harmful, exploit the poor or vulnerable, or are contrary to God’s design. Examples include companies that make abortion drugs which kill innocent babies or pornography which destroys marriages and plays a roll in sex trafficking. Other examples would be alcohol and tobacco companies which are physically harmful and make the bulk of their profits from consumers addicted to their products.

Embrace

Christian investors are not limited to avoiding bad companies but can proactively seek out companies whose products, services, and/or business practices promote human flourishing. This is where faith-based investing gets really exciting! Examples might include companies researching and creating novel treatments for cancer or genetic diseases, cyber security technology, or efficient renewable energy technology. It also includes companies whose business practices demonstrate care and concern for their employees, and operate with transparency and integrity.

It’s worth mentioning that a Christian investor is not limited to investing only in Christian-owned business or Christian mutual funds or ETFs. There are many secular companies with great products and services and principled business practices that can be God-honoring investments.

Engage

There are many companies in the gray area in between “avoid” and “embrace.” These might be companies with good products or services but whose management team has drifted from its core business mission into unbiblical social action. Or it might be a company with underdeveloped or sub-standard safety or environmental practices. With companies such as these, Christian investors can exercise their shareholder rights by advocating for change through active shareholder engagement with the hopes of encouraging change.

The great news is that faith-based investing can include any or all of these ways. At Beacon Wealth Consultants, our investment philosophy includes all three. We seek to avoid investing in companies whose products or services are clearly against God’s design, we gladly seek out and embrace investing in companies promoting blessing and flourishing. And we seek to wisely engage with the companies we invest in when we feel that active shareholder engagement is appropriate. We believe that investing is a vehicle by which we can bring blessing to the world.

Far from being a prescriptive movement, faith-based investing empowers Christian investors with several great ways to align their investments with their faith values. If you want to invest this way but lack the time or expertise to build and manage your own faith-based portfolio, give us a call! For over 25 years, Beacon Wealth Consultants has specialized in faith-based investing, helping faithful stewards just like you!