California’s largest utility, Pacific Gas & Electric Company, filed for Chapter 11 bankruptcy protection Tuesday, January 29th. The filing comes as a result of $30 billion dollars in wildfire liability incurred by the company as their equipment ignited at least 17 of the 21 major wildfires that roared through California state in 2017 and 2018.
Last summer, I attended PG&E’s annual shareholder meeting to challenge the executive leadership regarding their philanthropic support of abortion giant, Planned Parenthood. I shot a video on location to recap PG&E’s response.
At the time, PG&E was under intense pressure due to the wildfires which were still burning. PG&E stock had plummeted and the company had eliminated dividend payments to shareholders (many of whom were present at the meeting and expressing their concern due to their reliance on the previously substantial dividend to cover their retirement living expenses).
Given the dire straights of the stock, the mounting liabilities from the fires and the fact that the company had stopped paying dividends to shareholders, my question to the executives was would they also stop donations to Planned Parenthood?
Their answer was, “no” they would continue to donate to Planned Parenthood (despite not being able to pay their investors).
I did my best to point out to the executives how ridiculous that was. Never mind the despicable nature of Planned Parenthood’s abortion business, just from a financial fiduciary standpoint of acting in the best interest of shareholders it makes no sense to pay Planned Parenthood instead of a dividend.
I wasn’t surprised by their answer, however. The staunch persistence of abortion activist executives to advance the abortion issue against all reason or business sense is astounding.
And now they are filing for bankruptcy.
PG&E should serve as a stark example to all investors. If a company is willing to donate shareholder dollars to activist causes like Planned Parenthood, can you really trust them to make ethical, moral or just plain reasonable business decisions? Do you really want to invest money into a company run by people who would rather give the last penny to Planned Parenthood instead of elderly retirees who depend on the dividend to buy groceries?
““How long, O simple ones, will you love being simple?
How long will scoffers delight in their scoffing
and fools hate knowledge?
23 If you turn at my reproof,
behold, I will pour out my spirit to you;
I will make my words known to you.
24 Because I have called and you refused to listen,
have stretched out my hand and no one has heeded,
25 because you have ignored all my counsel
and would have none of my reproof,
26 I also will laugh at your calamity;
I will mock when terror strikes you,
27 when terror strikes you like a storm
and your calamity comes like a whirlwind,
when distress and anguish come upon you.” (Proverbs 1:22-27)
As unfortunate as it may be, and although I would never wish such a catastrophe on anyone, PG&E executives might just deserve what’s coming to them as their careers go up in flames. But the investors left holding the bag deserve better than what these executives gave them.
So, what about the companies that you own? Are there any “PG&E’s” of a different flavor lurking about in your portfolio waiting to file financial bankruptcy because of their ethically bankrupt decision making? You can find out for free at www.inspireinsight.com if you are curious.
PG&E’s date with calamity is just one more example of why I believe it is best to invest in inspiring, biblically aligned companies with a track record of ethical behavior.
What do you think?
Robert Netzly is the CEO of Inspire Investing and frequent contributor on FOX, Bloomberg, New York Times and other major media. Read more from Robert in his #1 bestselling book Biblically Responsible Investing, available at Amazon.com and other major retailers.