Hobby Lobby invests in same drugs to which it objects?
Michael Peppard April 1, 2014 - 10:56am
Today Molly Redden at Mother Jones reports that Hobby Lobby holds mutual funds that invest in the manufacturers of the same pharmaceuticals and devices to which the company claims religious objection.
Documents filed with the Department of Labor and dated December 2012—three months after the company's owners filed their lawsuit—show that the Hobby Lobby 401(k) employee retirement plan held more than $73 million in mutual funds with investments in companies that produce emergency contraceptive pills, intrauterine devices, and drugs commonly used in abortions. Hobby Lobby makes large matching contributions to this company-sponsored 401(k).
Several of the mutual funds in Hobby Lobby's retirement plan have holdings in companies that manufacture the specific drugs and devices that the Green family, which owns Hobby Lobby, is fighting to keep out of Hobby Lobby's health care policies: the emergency contraceptive pills Plan B and Ella, and copper and hormonal intrauterine devices.
There would have been many ways to avoid this, since "faith-based investing" in funds that avoid "vice" industries or other objectionable companies is a well-known phenomenon with competitive rates of return.
All nine funds—which have assets of $73 million, or three-quarters of the Hobby Lobby retirement plan's total assets—contained holdings that clashed with the Greens' stated religious principles.
Hobby Lobby and the Becket Fund for Religious Liberty, the conservative group that provided Hobby Lobby with legal representation, did not respond to questions about these investments or whether Hobby Lobby has changed its retirement plan.
I would have assumed a company taking the issue of corporate free exercise all the way to the Supreme Court would have looked into this. I doubt it would have affected the case's outcome, but it certainly could have affected the oral arguments by forcing the plaintiff to distinguish degrees of cooperation between providing health insurance options and providing retirement plan options. If these drugs and devices aren't too objectionable to invest in for your employees' retirement plans, a justice might have asked, why are they too objectionable to include as options in your employees' health insurance plans?
Read the details here.