Leveraging the power of the proxy. Catholic health care systems are using stock holdings to push for corporate accountability.

Mr. Henzlik is business development manager, Social Investment Research Service (SIRS) unit, histitutional Sha reholdcr Services, Nortbjicld, IL. Ms. Fallendcr is managing director, SIRS. SIRS provides portfolio screening and proxy voting to socially responsible investors and their investment managers. F or a number of years, many Catholic health care systems have sought to align their investment decision-making processes with their institutions' underlying mission and social goals. To achieve a balance of financial and social objectives, many of these systems' financial managers have encouraged their investment managers to utilize portfolio screening strategies consistent with their organizations' social missions and investment policies and with the mandates of the church. Moreover, an increasing number of health systems have begun to leverage their holdings by creating comprehensive proxy voting programs and engaging in shareholder activism, not only to push for greater corporate accountability, but to protect the value of their own investments. Lawsuits over alleged discrimination, high-profile controversies, and inadequate environmental controls can have a significant impact on a company's bottom line, and thus on shareholder value.