If you're an investor
who is concerned about
the impact of
corporations on the
environment and society, then socially
responsible investing
(SRI) is a growing
sector where you will
find securities that fit
with your philosophy.
SRI is a recognized
focus within the
investment community.
Socially responsible
investments are analyzed
on a global scale. The
SRI agenda is to promote
a set of values which
are considered to be
ethical and "Earth
friendly" by investing
in companies which
exhibit these values in
their corporate
structure, in the
workplace, in their
labor practices, in
their concern for the
environment, and in
their impact on the
community (including
respect for the rights
of native peoples). SRI
intentionally excludes
certain business sectors
which are deemed to be
unhealthy for the
planet, such as weapons,
tobacco and gambling.
Although socially
responsible investing
originally started a few
decades ago with the
religious agenda to
avoid companies which
promoted addictive
behaviors (like alcohol,
tobacco, and gambling),
it evolved in the 1970s
to include social and
ecological agendas as
well. Today the social
and ecological issues
are at the forefront of
socially responsible
investing.
Mutual funds which
specialize in SRI
usually focus on a
particular agenda, and
will only hold shares in
companies that are in
keeping with the SRI
values. For instance,
some funds will only buy
stocks in companies that
manufacture and promote
green energy products.
Other funds will only
buy stocks in companies
which practice fair
trade. Still others will
actively avoid stocks in
any corporations which
are involved in the
manufacture or sale of
weapons, munitions or
military products.