What Is Socially Responsible Investing?

A lot of people like to invest their money, hoping to make good returns or to keep it in a safer place than other options. While investing there are a lot of options, and many companies exist that do their business advising people and helping them with their own personal investments, or merely investing their own funds. These investments are usually in businesses or business ventures, which means you can invest in almost any field or endeavor. This also means that it is easy to invest in something that isn’t very socially responsible, or possibly damaging to the environment or community. Some companies specialize in helping people avoid this and offer suggestions only in something called socially responsible investments. These are investments that help the community, or environment, and also pay back the investor with good returns.

A Few More Details

Socially responsible investments are investments that seek to bring back both a financial gain, and a positive social gain as well. Encouraging a social change that the investor endorses, or anything that would benefit society as a whole. There are various industries that a lot of people consider to be damaging to society, such as the tobacco or fossil fuel industries. Socially responsible investing would invest in other sources of energy like wind or solar energy, and avoid investing in what they consider to be damaging. Another popular realm of socially responsible investing is in any company that works expanding consumer protection human rights, and diversity. A way that a lot of people find easy to practice socially responsible investing is to only invest in companies, that while not directly involved in social change, always make sure that their practices are socially and environmentally safe and responsible.

How to Invest

Sometimes people claim to provide socially responsible investing when what they really do is to screen out any investment companies with what they consider to be harmful practices. This is helpful, but doesn’t have the positive impact that is associated more with socially responsible investments. Some people choose to invest with government controlled funds which have certain guidelines to follow, and are subject to pressure from various activist groups. There are also mutual funds that have strict rules on what is acceptable to invest in and what isn’t. Finally, there are a lot of companies that exist to help groups or individuals invest in a socially responsible manner. These companies can be very helpful, as they are very good at what they do.

Ethical and Helpful

People decide to only invest in socially responsible areas for a lot of different reasons, whether they be ethical reasons, moral and religious reasons, or if they seek to make a positive change in the work with their investing. Whatever your reasons are, socially responsible investing is a great choice because of its dual returns. You make money, and also have a good impact on the society and the world in which you are living, as well as the one that the new generations will be living for their whole lives. Socially responsible investing can be a good idea all around.

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