Grass roots investing to stop corporate political donations
We are certainly in a new era where many retail shareholders are paying more attention to how companies are handling their affairs beyond financial profitability. The rise of ESG investing has been a phenomenal success story – to the point where there’s been a mad rush for many funds to proclaim they are ESG-focused in one way or another.
Layer onto that the willingness of many people to boycott – or otherwise pressure – companies with whom they do business if they do not support their missions, beliefs or politics. This all appears fuel to be the right time for funds to extend beyond the ESG label and reach for something more closely aligned to their tribe.
For example, “Goods Unite Us” is a nonpartisan, for-profit app that helps consumers align their purchases with their political beliefs, with a mission to empower people to become political consumers a so that we can all collectively put an end to corporate political donations.
Another example is the exchange-traded fund – DEMZ – which is politically-aligned with the Democratic party. Investor can invest in a fund that takes a position in companies – along with their senior managers – that tend to donate to the Democrat party (they contribute at least 75% of their total political contributions to Democratic candidates and PACs).