Jonathan Granoff is the president of the Global Security Institute based in New York. At the 2021 conference, he presented a paper calling for religious institutions to use their financial resources in harmony with their values. We talked with him about whether there is such a thing as a moral return in addition to financial returns.
Mr. Granoff, at the 2021 conference, you put two topics on one table that are usually only dealt with separately: Religion and money. How did you come up with the idea of bringing them together?
Granoff: All religions strive to uplift and enliven virtuous values in the lives of their adherents. How money is spent expresses those values. To ignore such expression is irresponsible. Religious institutions, I believe, desire to serve peace, respect the dignity of human life, and honor the regenerative processes of the natural world both for the purpose of sustaining life and respecting the Creator of all life. How they invest their resources should be in accord with these purposes.
In the Diplomatic Round Table, in which you participated, you presented a paper called “RESPONSIBLE INVESTING FOR A SUSTAINABLE FUTURE.” What exactly is behind it?
Granoff: Moral agency is given to all human beings by birth, but it withers if not exercised. The institutions in which we engage should express that agency. Investments should be discussed and evaluated by congregations. By bringing the Lindau Initiative before them they will have a vehicle for such discussion. Having a means of expressing their values will stimulate people to become informed. Causing people to become informed about nuclear weapons, protecting human rights, and environmental sustainability will help them make meaningful decisions. Simply realizing their moral agency itself will be of value.
Norway has had a windfall of money due to the discovery and exploitation of fossil fuel. It leaders observed that many nations with this resource have not used it to help take care of the needs of future generations and been profligate with spending the wealth in this generation. This is actually greedy. Moreover, fossil fuels excesses will impair the well-being of future generations. Thus, wise legislators in Norway decided to put some of the funds arising from the windfall into a fund for future generations. Further, they decided that the way the fund invests should not impair future generations and came up with rules of investment guidance. I call that responsible investing.
The fund has been enormously successful and is now in excess of a trillion dollars in value. It cannot invest in enterprises that impair human rights such as child labor, benefit from weapons of indiscriminate effect such as nuclear weapons, land mines or cluster munitions, or injure the environment.
I thought that if a secular state could have such a wise endeavor, it would be good if religious institutions and other institutions such as universities that have moral values did the same.
The process of identifying appropriate investments itself will be of enormous value.
(Please find the paper “RESPONSIBLE INVESTING FOR A SUSTAINABLE FUTURE” to download here.)
„What everyone should do is realize that they are responsible for how their resources are used. Healthy debate on such matters will be educating and I believe bring communities together.”
Jonathan Granoff, President Global Security Institute
Religious institutions that have money traditionally spend their money on charitable causes and emergency relief. What do faith communities get out of investing money as well?
Granoff: A clear conscience is the best pillow. A clear conscience is a sanctuary of peace. A person who ignores their conscience, ignores their moral agency to express values of loving kindness, peace, and wisdom which are always in accord with good conscience. A person who ignores the miraculous insights of conscience will suffer. Institutions are a collection of people who deserve the blessings of good conscience.
It’s hard to navigate the jungle of the financial world anyway. How can one find the right investment based on the values of one’s faith? Who can help one find the right investment?
Granoff: The Norwegian fund has done a great job of doing exactly this and it could be followed to good effect. It publishes lists of enterprises that should be avoided and why. It is a good place to start. However, I think that discussions addressing this question will be worthwhile.
Obviously, screws are needed to make a nuclear weapon, but a business that makes screws should not be a prohibited investment. Now, that is very different than an enterprise that assembles and delivers nuclear weapons. Where the line is drawn on what is acceptable might be different for different people. I think that this is natural. What everyone should do is realize that they are responsible for how their resources are used. Healthy debate on such matters will be educating and I believe bring communities together.
When people strive to do good, goodness seeks them out.
Is this the starting point maybe: to create an advisory service for values-based investments?
Granoff: There are already many such endeavors, but they are usually in silos, such as having labor standards or climate change. The Norwegian approach implicitly recognizes the inter connectedness and emphasizes human security and concern for future generations. All of these funds are not so insightful, but many are.
„Blessings are often formless and can only be discovered in the heart. To diminish that as a place where satisfaction is found is foolish. Investing money in virtues endeavors, if done without spiritual arrogance, will bring blessings.”
Jonathan Granoff, President Global Security Institute
Is the financial world possibly so money-oriented because value communities such as religions are virtually unconcerned with it? That they leave the playing field to speculators alone?
Granoff: There is a growing movement to bring values into investing and the disease of cynicism can only be cured by the application of virtue in action.
Is it conceivable to you that religions will also become a moral authority in the financial world? Is it conceivable that, in addition to monetary returns, moral returns could also count?
Granoff: Yes, absolutely. Blessing abound when love is brought into manifestation. Blessings are often formless and can only be discovered in the heart. To diminish that as a place where satisfaction is found is foolish. Investing money in virtuous endeavors, if done without spiritual arrogance, will bring blessings.
Now that your concept exists: What are the next steps?
Granoff: Circulate the Lindau Initiative widely and at the next conference make it a central matter where different institutions can report on how they have applied it. Some might even be surprised at not only how well they have done, how good they feel, but the blessings of grace that come when prayerful intentions guide action in a community.
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(Please find the paper “RESPONSIBLE INVESTING FOR A SUSTAINABLE FUTURE” to download here.)
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Jonathan Granoff is the president of the Global Security Institute based in New York. At the 2021 conference, he presented a paper calling for religious institutions to use their financial resources in harmony with their values. We talked with him about whether there is such a thing as a moral return in addition to financial returns.
