Making an Impact for the Kingdom Through Proxy Voting

Investors increasingly desire to see their investments align with their values. They want to know that their investments are making a difference in the world by supporting the causes they care about.

But as Christians, we hold a higher standard than just personal values. We are called to stewardship.

So if you have not been faithful with worldly wealth, who will trust you with what is genuine? Luke 16:11 (CSB)

We know that our financial resources are gifts from God, and how we use them in this life has eternal consequences. We don’t want to use our God-given wealth to build a secure financial future while compromising our integrity through investing in companies and organizations that don’t align with biblical values.

Our faith guides how we live, so it should also guide how we invest. That’s why more and more Christian investors are turning to faith-based investing.

When most Christians think about faith-based investing, the first thing that usually crosses their minds is Christian values screening or excluding investments in companies and organizations that don’t align with biblical principles.

But a robust faith-based investment strategy is about more than simply avoiding these companies. It’s also about making the Christian voice heard in the marketplace. That’s where proxy voting comes in.

What is proxy voting?

When you buy stock in a company, you’re buying a piece of ownership in that company, and owners get a say in how their company does business.

Corporations hold shareholder meetings, usually at least once a year, in which all of their “owners” can gather, receive an update on the company and vote on matters of corporate policy.

Shareholders can’t always attend these meetings in person. However, they can delegate their right to vote to another individual or a firm, known as a proxy, who votes on their behalf and according to their instructions.

Proxy voting can make the Christian voice heard.

No corporation is perfect. Even the quality companies that pass a Christian values screening process could have policies or business lines that may not align with every Christian’s personal convictions.

At GuideStone®, we engage with the companies we’re invested in to encourage more God-honoring business practices through proxy voting. This allows us to share our faith and make an impact for God’s Kingdom. We strive to use our voting rights as a Kingdom voice in the marketplace.

Before 2023, we had delegated proxy voting responsibilities to our mutual fund sub-advisers. However, we felt led to find a better way to make our voice heard.

In July of last year, we brought proxy voting in-house by developing proprietary voting guidelines and working with a leading proxy advisory firm. We now stand in a better position to exercise our shareholder voting power in accordance with our Christian values and the values of our investors.

For example, it’s no secret that in recent years, many companies have become heavily politicized, enabling ideological and religious discrimination to work their way into corporate cultures. Many employees (especially evangelical Christians) are reluctant to share their perspectives and ideas at work if they differ from their company’s predominant ideological bent out of fear of hurting their careers.

Thankfully, this proxy season saw many proposals on a wide range of companies’ ballots asking for reports on viewpoint discrimination, which GuideStone enthusiastically supported. We stood up on behalf of other Christians by making our voice heard.

GuideStone has also demonstrated the Christian commitment to defending the sanctity of life. Some companies collect a lot of personal data in the course of their business. Sometimes, law enforcement agencies need access to this information when investigating illegal activity.

We recently voted against a proposal that we believed encouraged certain companies to not comply with law enforcement if they were seeking data related to illegal abortion activities.

In Matthew 5:14-16, Jesus calls Christians the “light of the world” and tells us that we should let our light shine before others so that they can see our good works and give glory to the Father. Making the Christian voice heard through proxy voting is a vital part of a faith-based investing program and serves as a way of letting the Christian light shine and making a difference in the world.

Our calling is to serve Christ in all we do.

GuideStone has been helping Christian investors align their faith with their finances for over 50 years. We can put your dollars to work in a way that honors the Lord and helps you achieve your financial goals.

To learn more about our investing strategies, visit us at *GuideStoneFunds.com*. You can also listen to a podcast related to this topic.

Brandon Pizzurro leads the investment-related lines of business within GuideStone as Chief Investment Officer. In this capacity, he serves as president of GuideStone Capital Management, LLC, the investment adviser to GuideStone Funds and GuideStone Investment Services®, which provides investment advisory services to nonprofit institutions. He is also an Interested Director of the Board of Directors of GuideStone Funds. Investing involves risk. Principal loss is possible. Funds invested in accordance with the faith-based investment restrictions of GuideStone Financial Resources may not be able to take advantage of certain investment opportunities due to these restrictions, which may adversely affect investment performance. Past performance does not guarantee future results. You should carefully consider the investment objectives, risks, charges and expenses of the GuideStone Funds® before investing. For a copy of the prospectus with this and other information about the Funds, please call 1-888-GS-FUNDS (1-888-473-8637) or visit GuideStoneFunds.com/Funds to view or download a prospectus. You should readthe prospectus carefully before investing. GuideStone Funds® shares are distributed by Foreside Funds Distributors LLC, not an advisor affiliate. GuideStone Capital Management, LLC, an affiliate of GuideStone Financial Resources®, provides investment advisory services for the Funds.