wfn.org | Ethical guidelines for Lutheran church investments in Finland

[FRANK_IMHOFF.parti@ecunet.org (FRANK IMHOFF)]

Church among first institutions to address investment principles

TURKU, Finland/GENEVA, 25 August 1999 (lwi) - Ethical guidelines have
been prepared for investment activities of the Evangelical Lutheran
Church of Finland (ELCF) and its parishes in Finland.

According to the ELCF Church Information Center, the ethical evaluation
of investment in companies is highlighted as part of the investment
portfolio of the whole church and its economically independent parishes.

The decision makers for the investment activities are expected to have
both economical and ethical expertise and consideration. The guidelines
have been prepared by a working group which was led by Bishop Jorma
Laulaja from the Lapua diocese.

The 4.5million-member ELCF, representing 86 percent of Finland's
population, is one of the first institutions in the country that have
addressed the ethical principles of investment. The guidelines prepared
by the church are at the same time an indication of society's
recognition of the ethical questions involved in investments. The
discussion about investment principles is expected to continue.

The working group says that the ethics of the Lutheran church do not
differ from others. An ethical issue impacts the church just as it does
other areas of society. The ELCF is a member of the Lutheran World
Federation (LWF).

The Finnish church says that the starting point of the church's
investment activities must be one of broad responsibility for investment
ideology. Issues are examined from an ethical perspective throughout the
investment process. In a conflict situation ethical values are given
priority to the economical ones in such a manner that one is prepared
for less profit to the benefit of lasting moral value. The church must
act according to its own principle values.

While the ELCF notes that the goal of the church is to gain sufficient
profit from ethically acceptable investment interests, it underlines
that the investment interests must be selected in such a way that in
addition to profitability, important societal values are enhanced. The
church at the same time acknowledges that evaluating the ethical value
of businesses is not an easy exercise, especially since the supply
networks of multinational corporations are almost impossible to
investigate adequately.

The ELCF is concerned that investment activities must favor businesses
which take into consideration health issues such as healthy food,
product safety, working conditions and the working environment.
Attention must also be paid to environmental protection as well as
energy conservation.

The Finnish church says society's responsibilities include social
justice, education and training, science, research and culture. From the
human rights perspective it is important that potential business
investments respect the equal rights of religion, race and sex, and
labor issues and that they refrain from the use of child labor.

Parishes invest in order to maintain their regular activities in the
midst of economic turbulence. Funds are also collected for big one-time
requirements such as buildings. The main portion of the parishes' income
is generated from taxes which may fluctuate considerably each year. Out
of the ELCF's 587 parishes, more than 180 need support from the church's
central fund in order to provide basic services.

The church's investment activities revolve around investing the ELCF
employees' pension fund, which currently has over 1.6 billion FIM (USD
290 million). According to pension projections, 13.1 billion FIM (USD
2.4 billion) are needed to cover the commitments for which the pension
fund is responsible, leaving a shortfall of about 11.5 billion FIM (USD
2 billion). In 1998 the total funds of the parishes were about 4 billion
FIM (USD 727 million).

The working group proposes that the ethical principles of the church's
pension fund investments be annually studied. Proposed changes in the
legal framework are decided separately.

(The LWF is a global communion of 128 member churches in 70 countries
representing 58 million of the world's 61.5 million Lutherans. Its
highest decision making body is the Assembly, held every six or seven
years. Between Assemblies, the LWF is governed by a 49-member Council
which meets annually, and its Executive Committee. The LWF secretariat
is located in Geneva, Switzerland.)

[Lutheran World Information is the information service of the Lutheran
World Federation (LWF). Unless specifically noted, material presented
does not represent positions or opinions of the LWF or of its various
units. Where the dateline of an article contains the notation (lwi), the
material may be freely reproduced with acknowledgment.]

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Lutheran World Information
Assistant Editor, English: Pauline Mumia
E-mail: pmu@lutheranworld.org
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