Kansas Nuns Shake Up Corporate America with Shareholder Activism

The Unlikely Activists

In the quiet town of Atchison, Kansas, an unexpected group of activists is making their presence felt in corporate boardrooms across America. The Benedictine Sisters of Mount St. Scholastica, a small community of nuns, have become a formidable force in shareholder activism, pushing for environmental and social changes in some of the country's largest companies 1

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A Legacy of Advocacy

The nuns' involvement in corporate affairs is not a recent development. For over three decades, they have been actively participating in shareholder meetings and filing resolutions to influence company policies 2

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. Their efforts are part of a broader movement within the Catholic Church, which has been encouraging its organizations to use their investments as a means to promote social justice and environmental stewardship.

Strategic Investments and Impactful Results

Despite their modest financial resources, the sisters have strategically invested in various companies to gain a voice in corporate decision-making. They own just enough shares to be eligible to file shareholder resolutions, a tactic that has proven surprisingly effective 3

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. Their initiatives have led to significant changes, including:

• Convincing Chevron to report on its lobbying activities
• Pressuring Goldman Sachs to conduct a racial equity audit
• Encouraging companies like Caterpillar and Discovery to disclose political spending

The Power of Persistence

The nuns' success lies not just in their moral authority but also in their persistence and collaborative approach. They often partner with other activist investors and organizations to amplify their message. Sister Rose Marie Stallbaumer, the treasurer of the Mount St. Scholastica community, emphasizes that their goal is to engage in dialogue with companies rather than to shame them publicly 4

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Challenges and Criticisms

While the nuns' efforts have garnered praise from many, they have also faced criticism. Some argue that their activism distracts companies from their primary goal of maximizing shareholder value. Others question the effectiveness of shareholder resolutions in driving meaningful change. Despite these challenges, the sisters remain committed to their cause, viewing their investment activism as an extension of their religious values and a way to promote the common good.

The Broader Impact

The Benedictine Sisters' activism is part of a growing trend of ESG (Environmental, Social, and Governance) investing. Their work has inspired other religious organizations and individual investors to use their shareholder rights to advocate for corporate responsibility. As Sister Judith Sutera notes, their efforts are about "trying to make the world a little bit better place" through the strategic use of their investments 1

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