Socially responsible investing (SRI), also known as sustainable, socially conscious, "green" or ethical investing, is any investment strategy which seeks to consider both financial return and social good.
In general, socially responsible investors encourage corporate practices that promote environmental stewardship, consumer protection, human rights, and diversity. Some avoid businesses involved in alcohol, tobacco, gambling, pornography, weapons, and/or the military. The areas of concern recognized by the SRI industry can be summarized as environment, social justice, and corporate governance—as in environmental social governance (ESG) issues. In addition to stock ownership either directly or through mutual funds, other key aspects of SRI include shareholder advocacy and community investing.
The term "socially responsible investing" sometimes narrowly refers to practices that seek to avoid harm by screening companies included in an investment portfolio. However, the term is also used more broadly to include more proactive practices such as impact investing, shareholder advocacy and community investing. Amy Domini, a prominent member of the socially responsible investing community and the founder of Domini Social Investments, has stated that shareholder advocacy and community investing are pillars of socially responsible investing and that doing only negative screening is "not what I would consider adequate."
Read more about Socially Responsible Investing: History, Modern Applications, Global Context, Ethical Investment in The UK, Ethical Investment in Higher Education, See Also, External Links
Famous quotes containing the words socially responsible, socially, responsible and/or investing:
“There is not much that even the most socially responsible scientists can do as individuals, or even as a group, about the social consequences of their activities.”
—Eric J. Hobsbawm (b. 1917)
“There are some circles in America where it seems to be more socially acceptable to carry a hand-gun than a packet of cigarettes.”
—Katharine Whitehorn (b. 1926)
“Trusting as we did to the virtue of the people, the real people, not the politicians and demagogues, we passed through the most responsible and trying scenes, sustained by the bone and sinew of the nation, the laborers of the land, where alone, in these days of Bank rule, and ragocrat corruption, real virtue and love of liberty is to be found.”
—Andrew Jackson (1767–1845)
“After all, the chief business of the American people is business. They are profoundly concerned with producing, buying, selling, investing and prospering in the world.”
—Calvin Coolidge (1872–1933)