A positive alternative for religious investors
COSTON, CAROL
jobs. In 1975 the Provos shot dead the head of Du Pont, which is the biggest employer in the city, in order to stop any investment coming in. The sufferers are the young people. We have the...
...Next, add local support systems and links to outside technical assistance...
...She has served on the Adrian Dominican Portfolio Board since 1975...
...This plan sought to obtain sufficient capital to facilitate direct contracts with large department stores such as Sears and K-Mart, such direct contracts avoiding a costly middleman, thus sufficiently increasing the profits of the worker-owners, and providing for local control over all aspects of production...
...14 December 1984:685...
...But it will also help small underfinanced credit unions do more community development projects and compete more actively in the marketplace...
...I don't think she realizes how much I depend on her...
...7. Promote peace and non-nuclear energy alternatives...
...In addition to its $7.5 million grant program, CHD has set aside over $2 million to be utilized as loans...
...Or can we actively leverage these funds to become change agents for a "new creation" which values participation, stewardship, cooperation...
...But they also desire to create something more positive with their investments...
...The crowd linked arms and joined in...
...In 1979 ICA helped prepare an initial business plan and an internal management structure...
...John and Pat Hume arrived...
...They have increased public attention on the activities of multiI N 1971, the Episcopal church filed a path-breaking shareholder resolution calling on General Motors to cease its operations in South Africa...
...In the early 1970s, a lack of formal policy objectives for alternative investments among investing religious groups resulted in a high instance of defaults...
...Once these connections have been made, choices appear to be an active involvement in ICCR shareholder resolutions, and an encouragement for individual Catholics to do the same...
...But even these achievements have proven less than satisfactory...
...Basic corporate structures have remained unchanged, often with negative effects on the lives of workers, the environment, and third-world economic growth...
...Eventually, they may have to publicly divest in these corporations, an action already taken by many religious congregations...
...Congregational resources were pooled, lessening the risk factor to hesitant groups...
...The story of WOSCO is instructive...
...In 1981 the Campaign for Human Development (CHD) made a $75,000 loan to WOSCO to help repay existing shortterm loans, and to provide working capital...
...Currently capitalized at $360,000, the Leviticus Fund was a first step for many of these orders into the Commonweal: 684 world of alternative investments...
...The solution is an accommodation of differences...
...We have lost through violence in Northern Ireland s billion that could have built a quarter of a million houses, twenty hospitals, and numberous factories...
...Religious groups hold 322 shares of the common stock in INDC -- about 11 percent of common shares outstanding...
...The ingredients for this success story include the hard work, pluckiness, and risk-taking ability of the original women workers, and the special leadership qualities of Tim Bazemore, who invested a considerable amount of his own money in the business...
...The South Shore Bank in Chicago offered similar guarantees and advantages...
...Thirteen years later, hundreds of similar resolutions have been filed by a wide variety of religious groups intent on acting responsibly in their investments...
...Few presently belong to ICCR or have made their investment criteria public...
...which lets us demonstrate "where our treasure is, there is our heart...
...particularly if due to a radical or progressive commitmerrt to social change which threatens the status quo...
...The bank assumes the paper work and the foll0w-up with the local group...
...Many groups made alternative investments first in locallybased credit unions with insured deposits, and strictly monitored loan applications...
...Finally, the United Presbyterian Church has designed its own Creative Investment Program...
...On the old wooden floor dancers from ten-years-old to ninetythree jammed together doing everything from the twist to the hokey pokey...
...Another intermediate organization receiving loans and grants from religious investors has been the National Federation of Community Development Credit Unions (NFCDCU...
...What observations can be made on future challenges and opportunities for Catholic alternative investors...
...The Archdiocese of Boston is matching a CHD grant at work in collaboration with ICA to help start worker-owned businesses...
...Some use a percentage of their total portfolio -- from 1-10 percent...
...WOSCO itself is now trying to inaugurate the Northeastern North Carolina Fund for Development to assist other ventures in its geographic region...
...But the experience of the Adrian Dominicans and the Sisters of Charity of Cincinnati have proved the contrary...
...The Sisters of Charity have invested over $800,000 since 1980 in minority banks, revolving loan funds, local housing projects, and one third-world project...
...The fund provides assistance for doing feasibility studies, designing business plans, and developing cooperative management...
...Today, these religious groups continue to focus public attention on corporate activities...
...And that those in the United States who think it's a simple problem of driving the British out of Ireland and then all will be well ought to realize: any solution that doesn't leave behind a peaceful Ireland isn't a solution at all.'" Soon after noon on Tuesday, June 18, John Hume was reelected to the European Parliament...
...Be non-exploitative in their operations both domestically and in the implications for third-world countries...
...Bombing doesn't provide jobs for them...
...Many of these religious investors belong to the New York-based Interfaith Center on Corporate Responsibility (ICCR) which represents 17 Protestant denominations and 170 Catholic communities, predominantly women religious...
...Its loan fund, which began operating in 1983, had an original capitalization drive of $1 million, of which 30 percent was supplied by religious investors...
...Over 50 percent of the $225,000 goal for this project came from religious investors...
...9. Address the root causes of social and economic problems or demonstrate an innovative approach to social change...
...Over the past thirteen years, ICCR shareholder activities I I CAROL COSTON, O.P., was executive director of Network for eleven years...
...If the bank is willing to loan at a lower rate of ifiterest to a local community group which is trying to set up a business (and is not likely to get the bank loan otherwise, often for cultural or racial reasons), everyone benefits: the loan is insured and other leverages result...
...which seeks a more equal distribution of God's gifts...
...Oh deep in my heart I do believe . . . . " SELF-RELIANCE, LOCAL CONTROL, WORKER OWNERSHIP A positive alternative for religious Investors CAROL COSTON have precipitated a variety of changes in corporate policy...
...Earlier in the evening John Hume had said to me, "Pat is an extraordinary person...
...the bank profits from the lower interest rate...
...Without her I couldn't go on...
...It also furnishes initial funding to give new cooperatives, such as the Worker's Owned Sewing Machine Company (WOSCO), enough stability to seek additional funding of their own...
...The ICA gives technical assistance to beginning cooperatives...
...First, there is the ongoing challenge to shift more money into alternative investments -- including a larger proportion into projects needing a lower rate of interest...
...By June 1982 WOSCO had prepared a direct contracting plan, and a financing proposal which it sent to many ICCR members...
...It will offer insured deposits at competitive rates...
...6. Show capacity for cooperative decision-making and alternatives to traditional problem-solving...
...from arms sales to South Africa to boycotting coffee from Central American countries with records of human rights violations...
...A local church member contacts a local bank to negotiate a $100,000 certificate of deposit by the Creative Investment fund...
...One such fledgling project of,NFCDCU is a Community Development Central (a "banker's bank") for community development credit unions...
...It has advanced $39 million of development credit for the neighborhood...
...It seems a logical extension of the bishops' peace pastoral to look at investments in corporations with large military contracts, especially those involved in the manufacture of nuclear weapons...
...To date, five have paid back in full, one has asked for a few months extension, and the other eighteen are paying back on schedule...
...She is my life's blood...
...It grew out of the efforts of five women workers and a manager, Tim Bazemore, who were willing to undertake a workers' owned business after the existing cut-and-sew factory went bankrupt...
...We have the highest degree of unemployment in Western Europe...
...Now the crowd quieted...
...If the latter occurs, there is an opportunity to invest in such alternatives as those mentioned in this article...
...By providing revolving loan deposits, NFCDCU's goal is to strengthen low-income credit unions as self-help cooperatives working for economic self-sufficiency...
...others have a fixed amount set by their general assembly or elected officials...
...Still another approach for religious investors has been forming revolving loan funds, such as the Leviticus Fund, sponsored by twenty-seven Catholic orders in New York, Connecticut, and New Jersey...
...WOSCO offers a clear example of a successful collaborative effort in which religious investors have played a significant role...
...Just put what you observe...
...Is it just to hand over responsibility to financial institutions with the only directive being "turn a profit...
...Additional help was received from a local educational consultant, and a $15,000 loan came from Twin Streams Educational Center in Durham, N.C...
...The amounts made public range from $800 all the way up to $6 million...
...Its strategy is to selectively use certificates of deposit to encourage local banks to make loans they would otherwise not entertain...
...Similarly, the Industrial Cooperative Association's Revolving Loan Fund (ICA), a nonprofit cooperative developing worker-owned and -operated businesses, provides risk capital for financing worker cooperatives organized by low-income and blue-collar people in their communities...
...John Hume took his wife's hand and began in a strong tenor voice, "We Shall Overcome...
...The average loan was $10,000...
...Now for the first time since the 1920 civil war all the democratic parties that believe in Irish unity have gotten together in the New Ireland Forum...
...And they have lent almost half of the $22 million the bank uses for its development work...
...Since September 1982 the ICCR-spawned Clearinghouse on Alternative Investments has played an important role in directing and coordinating religious investors...
...nationals, and encouraged other religious institutions to monitor their investments...
...and the local group gets its loan...
...The ultimate question we all face, whether as individuals, congregations or dioceses, is: What is our responsibility regarding investments...
...As a result, WOSCO has now completed one direct contract with Sears, and has a commitment with K-Mart for another...
...Many religious congregations, faced with the financial responsibility of an aging membership, don't feel they can take such chances...
...In 1984, discussions with management and filed resolutions cover issues from military contracts to minority economic development...
...The U.S...
...So far, interest payments are coming in on schedule...
...The amount of money groups have earmarked for alternatives has varied, as have the expected rates of return...
...Mix these into meetings with" potential religious and foundation investors...
...That night over 500 SDLP supporters came to celebrate at Derry's Guildhall...
...companies...
...4. Create opportunities for worker ownership or worker management...
...We'll walk hand in hand, We'll walk hand in hand today...
...Religious investors have experienced frustration in dealing with corporate executives, and speeches given at annual meetings have often proven little more than symboiic exhortations...
...Second, dioceses must become more publicly involved in the area of corporate responsibility...
...Purchased in 1973 by the Illinois Neighborhood Development Corporation (INDC) "to demonstrate that an inner city commercial bank could both succeed in the marketplace and develop its neighborhood," South Shore is located in and committed to a 95 percent black neighborhood in the process of redevelopment and revitalization...
...Some argue that these investments are too risky...
...But based on two 1982 ICCR reports, denominations and religious orders now have developed policy statements and criteria for loan applicants 14 December 1984:683 which have revived interest in these programs...
...The Archdiocese of Milwaukee is working on a proposal for an inner-city home and garden center...
...These policies specify in general that the enterprise being considered for investment should embody several of the following criteria: 1. Have a proven financial responsibility, or in the case of new projects have such potential (many groups rely on staff recommendations...
...It has disseminated professional informational packets on the subject, provided forums for groups to share investing experiences, organized workshops on proposal evaluation, and connected investors with potential loan recipients...
...It sounds t o o . . , too sentimental...
...The differences that exist aren't any deeper in fact than those that exist in many parts of the world...
...Other discussions about religious congregations setting up similar revolving loan funds are currently in place among ICCR coalitions in Philadelphia, and in the Michigan-Indiana and Illinois-Wisconsin regions...
...John Hume praised them for their support and called up to the stage those who had done particularly difficult jobs...
...At 10 P.M...
...Its evaluations in determining whether to lend to a project encourage other groups to make similar decisions...
...It was the first such resolution sponsored.by a religious investor...
...In the future, religious investors will have the opportunity of working with other innovative projects...
...The NFCDCU is currently seeking commitments to deposit which are required before obtaining a charter...
...Then creme strategies to return profits to workers...
...What we need to do here is to devise a constitutional framework that allows people to be what they are and at the same time to work with one another...
...They are paying increased attention to alternate forms of investment, to long-term loan projects which emphasize self-reliance, local control, and workers' participation in decision-making and profits...
...CHD has taken a special interest in worker-owned cooperatives, and is currently encouraging diocesan projects in this area...
...In early 1982 ICCR sponsored a conference on alternative investments at which WOSCO was represented, obtaining visibility with the numerous church leaders in attendance...
...8. Demonstrate an inability to obtain funding elsewhere...
...This step was made only after a year-long education process...
...And add government funding possibilities...
...3. Produce products or servicesthat are socially useful and ecologically sound...
...WOSCO is a predominantly black and female cut-and-sew garment manufacturing company...
...L OCATED in Bertie County, North Carolina -- one of the eleven poorest in the U.S...
...2. Show a concern for racial, sexual, and economic justice in personnel policies and practices...
...A consequent slackening of interest in such ventures followed...
...5. Generate jobs for local residents...
...Since 1978 the Adrians have invested over $600,000 in alternatives such as credit unions, the South Shore Bank, ICA and four worker-owned businesses...
...Last year, 118 church shareholder resolutions were filed with 85 major U.S...
...It also assisted in obtaining financing...
...has a constitution which accommodates differences that go far beyond anything in this country...
...Then seeing me taking a note he said, "Don't write that...
...As more church groups turn towards alternative investments, the ICCR Clearinghouse plans to monitor the growing literature in the field and provide ever more sophisticated services to ICCR members...
...So I just observed them up there singing with the crowd...
...What we in Ireland have to learn is that unity can only come by accepting diversity...
...Finally, Catholics have another important avenue for encouraging economic investment alternatives in the form of donations to the Campaign for Human Development...
Vol. 111 • December 1984 • No. 22
