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)
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—Herman Melville (1819–1891)
“Ambitious men spend their youth in rendering themselves worthy of patronage; it is their great mistake. While the foolish creatures are laying in stores of knowledge and energy, so that they shall not sink under the weight of responsible posts that recede from them, schemers come and go who are wealthy in words and destitute of ideas, astonish the ignorant, and creep into the confidence of those who have a little knowledge.”
—Honoré De Balzac (1799–1850)
“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)