The death of Pope Francis at age 88, after more than a decade as head of the Roman Catholic Church, marks a turning point for Catholic Social Teaching (CST) — and potentially, the Church’s influence on Corporate Social Responsibility (CSR). As the cardinals prepare to gather in conclave, faith-based investors are asking: Will the next pope continue the Vatican’s progressive focus on economic justice, environmental advocacy, and market accountability?
If Francis’s successor embraces the same vision, the Church will likely maintain its role as a global voice for the ethical dimensions of capitalism and corporate leadership.
During his 12-year papacy, Francis consistently elevated CST from doctrine to action. He challenged what he viewed as the moral shortcomings of modern capitalism — including consumerism, income inequality, and environmental degradation — while seeking to align Vatican governance with transparency and accountability. In his first public address to journalists in 2013, Francis signaled his direction: “I want a poor Church for the poor.”
That stance earned praise from social justice advocates and criticism from market conservatives. Some even labeled him a Marxist — a charge he dismissed wryly, noting, “I have many Marxist friends.”² Still, most Church leaders recognized that Francis’s views were rooted not in ideology, but in the long tradition of CST.
“Pope Francis will long be remembered for his outreach to those on the margins of the Church and of society,” said Archbishop Timothy Broglio. “He has always used the strongest and clearest expressions in defense of the dignity of the human person from conception to natural death.”
The roots of CST go back to Pope Leo XIII’s landmark 1891 encyclical, Rerum Novarum, which addressed the rights and duties of labor and capital during the Industrial Revolution. Leo denounced both unregulated capitalism and socialism, arguing that human dignity depended on the right to private property, the sanctity of the family, and fair compensation for work.
He warned against class envy, exploitation of workers, and excessive state control, noting that “unchecked greed has reduced the laboring poor to a condition little better than slavery.” He also proposed a form of minimum wage — enough for a frugal worker to live, save, and invest in personal growth. The balance between labor and capital, he insisted, must be based on justice, not domination.
That document launched a doctrinal tradition that continues to shape Church teaching on economic life, from John XXIII’s Pacem in Terris to Paul VI’s Populorum Progressio and John Paul II’s Laborem Exercens. These encyclicals framed work as a vocation, condemned profit-maximization at the expense of dignity, and promoted solidarity and subsidiarity — all themes that resonate today in ESG investing and CSR standards.
Pope Francis extended CST into new realms, including climate change and global inequality. His 2015 encyclical, Laudato Si’, called for an “integral ecology” that links environmental, social and spiritual well-being.⁷ He criticized extractive industries, reckless consumption, and economic systems that leave people behind.
In Evangelii Gaudium (2013), he spoke forcefully against what he called “an economy of exclusion,” writing: “Just as the commandment ‘Thou shalt not kill’ sets a clear limit, so also we must say ‘thou shalt not’ to an economy of exclusion and inequality.”
Rather than simply critique, Francis also sought engagement. He backed the creation of the Council for Inclusive Capitalism, a Vatican-affiliated alliance of CEOs committed to reforming business practices to better align with human dignity and the common good.
Among its members:
Francis did not oppose capitalism outright. Rather, he advocated for what some observers call “compassionate capitalism” — a model that respects profit but places human beings and the environment at the center of decision-making.
He remained committed to economic inclusion, calling employment a human right that enables self-realization. In line with the 1986 U.S. Bishops’ document Economic Justice for All, Francis argued that the dignity of work and the rights of workers must guide public and private sector policy alike.
That vision resonated with socially responsible investors, Catholic institutions, and ESG-focused asset managers seeking alignment between moral values and market performance.
The election of a new pope could determine whether the Church deepens its commitment to economic justice or redirects its priorities. While CST is grounded in long-standing doctrine, each pontiff brings personal perspective, emphasis, and style.
Pope Francis leaves behind a clear legacy: a Church engaged with markets, committed to the poor, and unafraid to challenge corporate power in defense of human dignity and creation care.
As global markets evolve — and as ethical investing becomes mainstream — many faith-aligned investors will be watching Rome closely. The next pope’s approach to CST and CSR may not only shape the Church’s voice but also influence how values are expressed in capital allocation, shareholder advocacy, and long-term sustainability.
Whether continuity or change lies ahead, one thing is certain: the conversation between faith and finance is far from over.
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References:
Associated Press, Pope Francis, first Latin American pontiff who ministered with a charming, humble style, dies at 88, Nicole Winfield, 4-21-25
https://apnews.com/article/vatican-pope-francis-dead-01ca7d73c3c48d25fd1504ba076e2e2a
New York Times, World Pays Tribute to Pope Francis, Updates, 4-21-25, Various
https://www.nytimes.com/live/2025/04/21/world/pope-francis-updates-vatican
Quartz Business, 4-21-25, Kevin Williams
https://qz.com/council-inclusive-capitalism-pope-1851777062