By Flavio Felice, Michael Novak Distinguished Visiting Scholar-in-Residence, Busch School of Business The Catholic University of America.
For some, economics has become the "measure of the world." I am reminded of the title of the Italian edition of Lionel Robbins' work, A History of Economic Thought. It is entirely appropriate to ask by what yardstick such a measure should be taken. At this level of academic reflection, the Busch School of Business at The Catholic University of America in Washington, D.C., is attempting to create a consortium of investors who, recognizing themselves in the principles of the Church's social doctrine, can align their investments with those principles.
In this regard, the Consortium explicitly refers to two main sources. The first is the document by the United States Conference of Catholic Bishops (USCCB) titled, Socially Responsible Investment Guidelines 2021. The second is the document by the Pontifical Academy of Social Sciences, Mensuram Bonam (2022), which translates to "the good measure."
This perspective has animated a group of scholars teaching at the aforementioned school, who have embraced the invitation of the USCCB to promote guidelines that should guide Catholic and other denominational investors, as well as non-believers who cherish values reflected in the principles of the Church’s social doctrine.
The program aims to provide the broadest possible academic platform for all those involved in the financial world—individuals and organizations alike—to speak with a unified voice and carry significant weight in public debate. It is also an attempt to support, with theoretically mature arguments in the scientific field, all those who work in finance and are called daily to express their opinions and vote in board meetings, yet often feel lost, experiencing the deep discomfort of being unable to influence their organization's choices. Worse, they may feel the burden of isolation and the temptation to conform to the world's standards.
In a discussion with the program's director, Professor Nicholas Schmitz, who teaches "Corporate Finance" and "Securities Analysis" at the Busch School, and Daniel Svogun and Irene Kim, who are also responsible for the program, we identified two main objectives—one short-term and one long-term.
The short-term objective is to critically analyze the document prepared by Institutional Shareholder Services (ISS) entitled Catholic Faith-Proxy Voting Guidelines, reassess it and align it more closely with the guidelines of the USCCB and the Mensura Bonam document prepared by the Pontifical Academy of Social Sciences.
The guidelines proposed by the USCCB emphasize three key points: first, that financial instruments should not cause harm; second, that Catholics should be effective agents of change and witnesses of the Gospel, including in the financial sector; and finally, that Catholic engagement should be genuinely directed toward the common good—that is, the good of every person.
The civic value of financial institutions is therefore measured by their ability to serve the common good—a category that is not only political but also civil, as it affects the various spheres in which each person's historical-existential experience unfolds. For this reason, the Consortium, which adheres to the guidelines indicated by the USCCB, represents an intriguing proposal at the forefront of scientific research. It seeks to ensure that the world's measure aligns as closely as possible with the measure of the good, whose only standard is the dignity of every person.
This article was originally published in Avvenire (a daily newspaper of the Italian Episcopal Conference).