Research
April 2, 2024

Politicizing Business is Costly

Bowyer Research analyzes corporate performance data and concludes that corporate politicking on divisive social issues raises legitimate financial concerns.

Inspire Investing has been actively engaging companies on issues related to de-banking, censorship, DEI/workplace civil liberties, and LGBT activism, among others. Our main goal has been to de-politicize companies and stop them from getting involved in divisive social and political issues that have nothing to do with their core products and services and only end up alienating customers and employees and exposing the companies to unnecessary legal and financial risk.  

In a recent white paper entitled Corporate Political Activism and Shareholder Value, Bowyer Research analyzes corporate performance data from a number of different angles and reaches the conclusion that corporate politicking on divisive social issues “at the very least raises legitimate financial concerns” for investors.  Some of the data cited in the paper includes analysis by Tim Schwarzenberger, CFA, of Inspire Investing comparing return, risk, and risk/adjusted return (Sharpe ratio) figures for Target, Bud Light, and Disney versus their main competitors.  Over all trailing one-, three-, five-, and ten-year periods, all three of these companies have significantly underperformed their peers, especially more recently when these companies have significantly stepped up their political activism.

We thank Bowyer Research for producing this important work and including Inspire’s analysis. The paper supports our concerns about corporate political activism and enforces our approach to Biblically Responsible Investing, which includes engagement on many of these issues. For the latest on our shareholder engagement work, visit https://www.inspireinvesting.com/blog.

*Advisory Services are offered through CWM Advisors, LLC dba Inspire, a Registered Investment Adviser with the SEC. All expressions of opinion are subject to change. This article is distributed for educational purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products, or services. Investors should talk to their financial advisor prior to making any investment decision.

Christian financial advisors. Data-driven results.

At Inspire Advisors, we believe good values and good returns are not mutually exclusive.
Talk with An Advisor
Arrow Icon

Information on this website does not involve the rendering of personalized investment advice but is limited to the dissemination of general information on products and services. A professional adviser should be consulted before implementing any of the options presented. The information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed.

The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. Registration as an investment advisor does not constitute an endorsement of the firm by securities regulators nor does it indicate that the advisor has attained a particular level of skill or ability.

Different types of investment involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client's investment portfolio. No client or prospective client should assume that any information presented and/or made available on this Website serves as the receipt of, or a substitute for, personalized individual advice from the adviser or any other investment professional.

National Admin Office: 3597 E Monarch Sky Ln, Suite 330 Meridian, ID 83646; Phone: (877) 859-6383 Investment advisory services offered through Inspire Advisors, LLC, a Registered Investment Advisor registered with the SEC.

© Copyright - Inspire Advisors, LLC