This Faith in Finance podcast is underwritten in part by Praxis Investment Management. Since 1994, Praxis has offered investment products designed to meet the practical needs of everyday investors while supporting positive change through impact strategies that go beyond screening. Guided by faith values, Praxis strives to make a positive impact on the world. Learn more at PraxisInvests.com. Yeah.
You may own shares in major companies, but who's speaking on your behalf when big decisions are made? Hi, I'm Rob West. As investors, we often think about what we own, but not how that ownership can be used to influence companies for good. Today, we're taking you inside that process. Chris Meyer joins us to talk about corporate engagement and what it looks like in practice.
And then we'll take your calls at 800-525-7000. That's 800-525-7,000. This is Faith in Finance, biblical wisdom for your financial decisions.
Well, our guest today is Chris Meyer, Stewardship Investing Research and Advocacy Manager at Praxis Investment Management, one of our trusted underwriters here at FaithFi. Chris, it is great to have you back with us. Thanks, Rob. It's great to be here. Let's begin with the foundation, Chris.
What do we mean by corporate engagement, and why is that such an important part of your work at Praxis? Yeah, so corporate engagement means using our rights and privileges as investors. to talk with company management to encourage better corporate policies and practices. on issues that are central to what we believe. we see it as a way to transform companies rather than simply avoiding them in our funds.
And we do do screening, but this allows us to do even more. A lot of investors want to reflect their values with their money, but they aren't always sure how to influence companies in a practical way. For us in practice, we see corporate engagement as an extension of our stewardship. It's like a responsibility to provide a social impact in addition to your typical financial return with an investment. Ultimately, I'd say we're guided by passages like 1 Corinthians chapter 4, which remind us that stewards are called to be found faithful.
Yeah, that's well said.
So, let's talk about the types of issues you prioritize. How do you determine where to focus your engagement efforts? Yeah, it's an important question. We're currently focused on three central themes, which include creation care, human rights, and ethics in tech. And within each of those three, we look for issues where there are clear risks.
or real opportunities for companies to make improvements. We consider where we have meaningful leverage as investors and where our engagement could realistically lead to real change. A lot of our consideration is informed by research partnerships, what our clients are interested in, and what we see going on as we monitor companies. Is this work you usually carry out independently, or is there quite a bit of collaboration that goes on here? There's a lot of collaboration.
We often work alongside other faith-based investors and broader coalition. I think that helps. increase both the breadth and the depth of the work that we can accomplish. And It also amplifies our voice. When there's many of us saying the same thing, it kind of lends some credence to our argument.
I also think that collaboration can bring diverse perspectives and expertise into the conversation. Yeah, I couldn't agree more. I'd love for you to take a moment to walk us through your approach, starting with your preparation before you engage with a company. Yeah, our preparation usually starts with deep research. We found a topic that we really want to engage on.
We see there are risks, but we need to understand the issue well before we approach a company. On an issue like human rights in the supply chain, we want to see how it connects to the company's operations. We'll consult with outside experts or nongovernmental organizations who specialize in that particular issue to keep us. better informed. We also want to understand the company's business model to see how the intersection of that issue kind of is a risk to their business model and maybe what their constraints are so that our approach is realistic.
We're not asking them to do something they're incapable of doing. We also like to set goals for what meaningful progress could look like. and consider timing as well. There's certain times when a company may be more open to conversation or change, and we want to take advantage of that. Yeah, that's really powerful.
Well, I'm looking forward after the break to continuing to unpack this, both in terms of what it looks like to actually engage with these companies and have conversations with company leadership, how you define success, and even some examples of how this works in practice. Folks, our role as stewards doesn't stop with what we own. It really extends to how that ownership is used. Today, we're talking with Chris Meyer from Praxis Investment Management about their work in corporate engagement, which is a key part of how we can align our values with our investments. More to come just around the corner.
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Accounts are privately entered. up to $250,000. This institution is not federally insured. Uh We're talking about faith-based investing today, and specifically an aspect of faith-based investing called corporate engagement: how you can influence change as an investor. Joining us today is Chris Meyer.
He's Stewardship Investing Research and Advocacy Manager at Praxis Investment Management, one of our trusted underwriters. And Chris, before the break, you were walking us through what corporate engagement is and how you think about the categories of change you're looking to affect, the preparation, the deep research, and collaboration that goes into preparing for engagement. Let's talk about once you engage, how you communicate effectively with company leadership. What does that look like? Yeah, so we try to approach these conversations with companies with respect and also a long-term mindset.
Because our goal isn't to confront or shame companies, we want to try and build trusting relationships that we believe are the best way to lead to honest, constructive, and productive dialogue. We try and share our concerns with companies clearly and ask them questions that are thoughtful and listen carefully to how they respond. And this all helps us build the kind of trusting relationship that is productive over time. And over time means not a short time. Usually these are not one-off meetings.
We expect most engagements with companies to span multiple conversations and often multiple years. Yeah, that makes sense.
Some listeners may be wondering, Chris, can these conversations truly make a meaningful difference? What are you seeing? Absolutely, they can make a difference, though I would say it's usually an incremental difference rather than one single large and immediate change. But I've been part of enough corporate dialogues that I've seen many companies adopt new policies. like improve their disclosures.
or take steps they hadn't considered before because of our engagement. I think change usually happens because investors stay engaged over time and not because of a single conversation.
So really it's about persistence and partnership. Yeah. How do you define success in this kind of work, especially over the long haul? Yeah, I think success can take different forms. We like to define what progress means when we set goals in the preparation phase.
It can be a policy change, a public commitment from the company, or some other goal that we've set.
Sometimes it's about just moving an issue in the right direction, even if it's not fully resolved or we can't see how it could be fully resolved. What we're looking for is generally measurable steps. that indicate that the company is taking the concern seriously and is putting effort into address it. Sure. How do you know when an engagement has run its course or is it ever truly finished?
Yeah, that depends on the specific engagement.
Sometimes there's a clearly defined achievable goal and it's realistic for the company to achieve. And once the company meets it, we'll kind of sunset the dialogue. Doesn't mean we cut off communication, but we focus our efforts elsewhere. But other engagements are more open ended because the issue is large and more generally defined. For instance, the issue of environmental stewardship with electric utilities in that type of dialogue that we're part of We're seeking incremental improvements.
And the engagement tends to evolve rather than kind of end with a single action. Yeah, that makes sense.
Perhaps it would be helpful for our listeners to have an example. Can you share a current issue you're engaging with right now? Sure. A good one would be conversations we're having with retailers and apparel companies about their global supply chains and the human rights practices that are embedded in those supply chains. We're seeking to improve how the companies monitor conditions and ensure fair treatment of the workers that help produce their products.
And it involves encouraging them to be more transparent about the systems they use and stronger public reporting.
So investors like us are not in the dark about how they're addressing this kind of risk. We want to know how the companies are auditing their suppliers and responding to violations in the supply chain. What happens when they find out that a supplier has been abusing their workers? We want to know what kind of corrective action they're taking. It's a big area or a big issue area where progress can take time, but we're seeing increased awareness and movement in it.
So that's positive. Chris, I'm curious, in the case of a supply chain issue like you're describing, where there might be human rights practices that you can't agree with, if you come to believe that a company is just not going to change their practices, at some point, do you need to divest and move on and avoid that company accordingly? Absolutely. I mean, that's one of our criteria is that if a company is doing things that are antithetical to our values and they're not even willing to have a conversation to try and improve things, it can certainly is grounds for divestment. For our listeners today, Chris, why does this matter for them as investors?
Many people don't realize that when they invest through mutual funds, like most of us do, that they're part owners of companies, and there's a voice that comes with that. Mutual funds will exercise it as they will, but it's there. There is power in your investments. And corporate engagement is one way that that voice is used to encourage companies toward better practices. And so it's transformational in a way.
And I think it's a way for investors to align their money with their values and receive both a financial and a social return. Yeah. What does it look like for your investors at Praxis, Chris, to be able to celebrate these wins? How do they get reporting to know what changes are taking place through corporate engagement? Yeah, we have a website that documents a lot of the progress we're making through our different impact strategies, practiceinvests.com.
We also publish impact reports, both quarterly and an annual report. And in that, our investors can see that their dollars are making a difference through things like corporate engagement, but also community investing and impact bonds, lots of different ways that we can make the world a better place while at the same time we're getting financial returns to help us in our lives. Yeah. You know, one of the things that people push back on when it comes to faith-based investing is just this idea that through the secondary market, they really don't have as much influence as the primary markets when it comes to buying and selling shares of companies. And yet, this very idea of corporate engagement, I think, you know, dismantles that argument completely because you have influence, don't you?
Yes, we do. influence and when we partner with others who are seeking to use their influence in the same way on the same issues, it really does amplify our voice. And I've been part of this work for almost two decades and I can certainly attest that it is effective. We can make change and we can build trusting, productive relationships with companies and they do care about what their investors want. Yeah, they sure do.
Well, folks, I think what you're hearing here today is that our role as stewards doesn't stop with what we own. It really extends to how that ownership is used. And Praxis Investment Management is using that influence in a really powerful way and affecting significant change. Chris, thanks for your partnership and for joining us today. This has been great.
Thanks a lot, Rob. I really appreciate the conversation. That's Chris Meyer with Praxis Investment Management. Since 1994, Praxis has offered investment products designed to meet the practical needs of everyday investors while supporting positive change through impact strategies that go beyond screening. Guided by faith values, they're making a positive impact in the world.
You can learn more at PraxisInvests.com.
Well, we're coming up on a break, but much more to come just around the corner. Call right now, 800-525-7000. We'll be right back. If budgeting feels like a second job, the new Faith Phi Pro was built just for you. It learns your spending patterns, categorizes your transactions, and helps you build a budget based on your real life.
Plus, scripture readings and biblical devotionals help you manage God's money God's way. Try Faith5 Pro free for 30 days and lock in 25% off a pro subscription. Download the Faith Phi app from your app store or at faithfi.com/slash app. That's faithfi.com/slash app. We are grateful for support from Praxis Investment Management.
Since 1994, Praxis has offered investment products designed to meet practical needs for everyday investors seeking to steward their assets consistent with their desire to promote positive social and environmental impacts. Praxis aims to bring a faith-based approach to ETFs, mutual funds, multi-fund portfolio solutions, and money markets. Market accounts reflecting their 500-year-old Anabaptist Christian faith tradition. More information is available at PraxisInvest.com. Thanks for joining us today on Faith and Finance.
We're taking your calls and questions today. 800-525-7,000. Again, that's 800-525-7,000. Whatever's on your mind today, call right now. We've got lines open and we'd love to hear from you.
Address your specific financial question: whether it's living on a budget, paying down debt, maybe it's investing for the future, or even getting that credit score up, whatever it might be. Lines are open again. 800-525-7,000. Let's begin in Illinois. We'll start with Robin.
Go ahead.
Okay. Hi, thank you for taking my call. And I just had a question. I'm going to be 73 this year. And the institution that holds my IRA for my RMD that I need to take out said that they could send the check directly to me.
I give to various charitable organizations, but everything I hear on your program says the check should be sent to the charity. Yeah, that's exactly right. Because you are over 70 and a half, you have the opportunity to do what's called a qualified charitable distribution, which the only way for that to be a qualified charitable distribution to satisfy your required minimum, but not have it added to your taxable income is when it doesn't come to you first like an RMD normally would, but it goes directly to the charity. What you would want to do is just call the brokerage firm or the custodian of your account, whoever sends you your statements, and just say, I want to take my RMD by way of a qualified charitable distribution, and I want you to send the check directly to that ministry. And when they do that and you get the appropriate documentation, you'll just acknowledge that on your tax return, that it's not taxable because it did not come to you first.
It went straight to the charity. And again, as long as you give enough to get above your required minimum or at least meet it, you will satisfy the required minimum for the year and you will not have anything added to your taxable income. And the QCD is the only way to do that. Yes, and that's what I understood. But when I called my IRA broker, he told me that they could send the check directly to me.
And I said, oh, you can? And they said, yes. And so that's why I've heard you say numerous times it has to be sent directly to the charity.
So that's what I was confirming.
So you just confirmed it that it does need to go to the charity. Yeah, that's exactly right. That is really a critical piece because you don't want that check made payable directly to you. If that happens that way, it will not be considered a qualified charitable distribution.
So I would just say respectfully, I can't have that check made out to me and then donate it. In order to have it treated as a qualified charitable distribution.
So, I want it made out directly to the charity, and then you can provide the appropriate information that the charity or your church will provide you to give to your broker.
So, I'm glad you checked on that, Robin. You are exactly right. Thanks for being on the program today. We're grateful to have you. Let's go to Michigan.
Hi, Marsha. Go ahead.
Hi, thank you for taking my call. Just this last year, I've been getting calls, I guess, from the internal revenue system, about that I'm delinquent with my taxes.
Well, I didn't know you had to pay taxes on Social Security, and I've been retired for ten years.
So I've got 10 years of taxes that have piled up. And I'm I'm not sure. She said there's some tax relief benefits going on, but I don't know quite how to approach this. Yes.
Well, I'm so glad you called. And the first thing I would say, Marcia, is don't panic, but let's not ignore it. Um, you know, the IRS will work with people who respond, but problems grow if they're ignored.
Now, the biggest thing I'm wondering is: let's verify that you do actually owe taxes. There is a lot of fraud and scams, and the fact that somebody called you is that is the first suspicion in my mind versus you getting a letter from the IRS.
So, are you saying that somebody called you and said you owe taxes? I got a lot of people. I got a lot of calls. And they left their number, and I don't know how to trust them. I don't know.
Yeah. So I would say that's probably not legitimate. If you're getting a phone call, the IRS does not call you. The IRS will always send you a notice through the mail. Have you received anything from the IRS?
No, no, I haven't. All right. And let me ask you, all these years you've been collecting Social Security, did you have additional income beyond the Social Security? Nope.
Okay. If all you had was Social Security income and no other income, you don't owe any taxes. Really? I'm going to tell you. Yeah.
So this is a scam or somebody who's trying to get your personal information. Have you provided any information to them over the phone or in any other way? No. I haven't called any of them back because I don't know if they're for real or I don't trust them. Yeah.
If Social Security is your only income and you don't have a pension or IRA withdrawals or wages or investment income, you typically do not owe federal income taxes. And the fact that you have never received anything from the IRS through the mail and you've only gotten phone calls from people claiming to be from any number of places, including the IRS, that is not a legitimate inquiry. That's not the IRS. Oh, boy. What a relief.
I really appreciate your help. I get a little better than that.
Well, I'm glad.
Now, if you want to get with somebody who can go over your situation, Just to confirm that there's nothing else there that maybe you haven't thought of that could generate attacks beyond just the Social Security, you could connect with the CPA. But the fact that you've been getting phone calls tells me you don't need to worry about that. And I would definitely not ever return any calls. Definitely don't give any information over the phone, even if they say they're from the IRS and they threaten legal action or arrest or anything like that. You just need to know the IRS does never call you.
they will always mail you directly through the U. S. Postal Service. I so appreciate your advice. Thank you so much.
You're welcome. God bless you, Marcia. Thanks for being on the program today. So thrilled you called. Folks, so thankful to have you along with us today.
You know, here's our goal on this program each day: just to be an encouragement to you, to point you to God as your ultimate treasure, to help you see money as a tool to accomplish God's purposes. This is not something that should be fearful. It should not be overwhelming. There's help out there. We're here to provide it through our certified Christian financial counselors, certified kingdom advisors.
But at the end of the day, we can look to God's word. We can look to those that He's allowed to come alongside us and find direction, hope. And ultimately, that God is our provider, and so we can rest and trust in that. Listen, if you want to find a CKA in your area, again, that website is findacka.com. These are men and women that have been trained who are professional financial advisors and investment advisors, but they've met high standards in character and confidence.
They've been trained to bring a biblical worldview. There's more than 2,000 of them in the U.S. and Canada. Again, that website, findacka.com. If you'd like to support FaithFi, just go to faithfy.com slash give.
We say thanks to my amazing team today. Jim Henry, Taylor, Tahira, Josh, Dan, and everybody here at FaithFi that makes this possible. Come back and join us tomorrow. We'll see you then. Bye-bye.
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