socially responsible investing
Therefore, SRI considers both the investor's financial needs and an investment’s impact on society. Social investors include all kinds of investors. For example, individuals, corporations, universities, hospitals, foundations, insurance companies, pension funds, and nonprofit organizations have been among the SRI investors. For some, SRI makes up a part of their portfolio , while others invest all of their investment capital within SRI guidelines (although for most that means diversifying risk by investing through SRI mutual funds). According to the Social Investment Forum, there are three key SRI strategies:
Socially Responsible Investing - StrategiesOf the three mentioned strategies, screening refers to selecting companies or investment instruments based on social or environmental criteria. These criteria may include product safety, positive community involvement, positive environmental policies, as well as respect for human rights around the world. Shareholder advocacy is another side of the coin from screening strategy. With shareholder advocacy, the SRI investors change the policies of the companies towards SRI positive guidelines through corporate boards and shareholder activity. As for the final strategy, community investing and social venture capital refer to investments to socially or environmentally responsible companies and community activities (in low-income communities). To learn more about SRI, you can find further information from several organizations promoting the SRI investing lifestyle. These resources include:
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