Ethics and Religion Talk

Many companies wish to go in the direction of ESG (Environment Social Governance). This movement encourages businesses to take more things into consideration that the bottom line of profit. Many politicians are attempting to punish those corporations that see this as an opportunity to contribute to the public good. Is it ethical to stop people from such an effort?

The Reverend Colleen Squires, minister at All Souls Community Church of West Michigan, a Unitarian Universalist Congregation, responds:

Unitarian Universalists try to support businesses and invest our resources in causes, actions and practices that are consistent with our values. We care deeply about the environment and planet. We want our behavior and choices to have a positive impact on our Earth, and its inhabitants. We believe this is ethical or morally correct. We would hope any new legislation would be supportive of such goals. We would also tend to support businesses that are green.  

Rev. Ray Lanning, a retired minister of the Reformed Presbyterian Church of North America, responds:

As a Reformed Presbyterian I believe that those who hold high office in the state are obliged to “defend the poor and fatherless: do justice to the afflicted and needy; deliver the poor and needy out of the hand of the wicked” (Psalm 83:2, 3). This is God’s work, and it should be theirs. If this duty is neglected, these presidents, judges, and legislators will find that their high offices are only a curse to them, and not an honor or a blessing.

It is encouraging that after years of protests and confrontation, corporations are at last owning their share in the universal human task of safeguarding and caring for the planet we live on (Genesis 2:15), and promoting justice in the social order of which they are a large and influential part (Amos 5:24). It is astonishing that these corporations should come under attack from politicians who for so long have defended the right of such enterprises to do as they wish with their resources, employees, and profits. “Free Enterprise” now has strings attached to it! Corporations must bow to the will of politicians or pay a heavy price.

Is it ethical to use the powers of office to punish those who disagree with your policies or enactments? By no means! It is a violation of every principle we hold dear as Americans, and everything we believe as Christians. 

Fred Stella, the Pracharak (Outreach Minister) for the West Michigan Hindu Temple, responds:

I can never be surprised anymore about how low MAGA supporters will go to  what they refer to as “owning the libs.” This is an infantile effort that does nothing to improve the quality of life in our country. These maneuvers exist only to increase rage and cement power. 

The argument on their part is that corporations exist primarily to generate a profit. Any other benefits (to employees, consumers, etc.) are secondary. But what they are missing is that adherence to ESG principles can, along with other sound business practices, create even more wealth for owners and investors. It’s also important to note that wise environmental policies are often derided by those who claim to believe that climate change is a false narrative. I suspect many, if not most, are financially motivated to lie.

Father Kevin Niehoff, O.P., a Dominican priest who serves as Judicial Vicar, Diocese of Grand Rapids, responds:

“Environmental, social, and governance (ESG) investing is used to screen investment based on corporate policies and encourage companies to act responsibly”

I find it morally repugnant that politicians are invading an individual’s or company’s right to invest its money responsibly for the sake of the environment, our neighbors, and our government. No, it is unethical for people in politics to demand individuals or companies invest their money as the politicians see fit. Individuals have a right to invest their money as they choose using ESG filters to leverage companies to be responsible with their methods and practices to make money.

My response:

If an individual or a company wants to incorporate social values into its business model, whether those values be liberal or conservative, there ought to be a high bar before the government should be able to step in with restrictions. Private companies which discriminate against protected classes, violate the law regarding employee protections and benefits, contaminate the air, water, or ground with pollutants, or do not pay their fair share of taxes should not expect government protection. Companies which make contributions to political or social causes do so knowing that it may affect their bottom line. Some people will be attracted to invest or do business with companies associated with the anti-abortion movement, for example, which others will spend their money elsewhere. But as long as the company is not clearly taking away from the public good, it would be unethical to punish them for their actions or policies.