Investment Inspired by the Principles of Catholic Social Teaching (CST) as a Contribution to the Social Development Goals (SDG): A Case Study

Abstract

This chapter describes Altum Faithful Investing, a case study of an investment product, oriented from the principles of CST. After an introduction where we point out the most relevant threats and opportunities for Finance today, we present the paradigm of the Catholic social teaching: its genesis, development, and the fundamental principles that emanate from their key documents, from Rerum Novarum (Pope Leo XIII), to Oeconomicae et pecuniariae quaestiones. Considerations for an ethical discernment regarding some aspects of the present economic-financial system. Catholic social teaching (CST) recognizes the relevance of financial dynamics, markets, and investment products as key elements for economic development and human progress. However, it sees neither exorbitant speculation nor furious short-termism as desirable. On the contrary, it encourages looking to the long term, seeking the sustainability of economic and human processes. Assuming that any investment decision always has a moral component, in addition to the economic-financial one, the CST proposes a series of criteria, values, and principles that are aligned with ESG investment products. Such are, among others: the dignity of the person; the universal destination of goods; the principles of solidarity and subsidiarity; the common good; the preferential option for the poor.

This chapter actively promotes the notion that strong ethics, based on solid values, are essential to businesses, to the economy, and, ultimately, to the well-being of society and of human beings around the globe. We aume the relevance of the ethical dimension of finance and financial markets, because even the decision to invest in one place rather than another… is always a moral and cultural choice.