What is Socially Responsible Investing (SRI)?

what is socially responsible investing

By definition, socially responsible investing refers to the practice of utilizing an investment strategy that considers both financial returns as well as a socially-conscious effort to promote positive change.  But that’s just the start of its true meaning.

You may have heard of socially responsible investing (SRI) referred to as many different things including sustainable investing, responsible investing, socially conscious, green, or even ethical investing.  Another term, impact investing, refers to the devotion of creating a social impact based on investment choices.

Is Socially Responsible Investing a new concept?

The modern term of socially responsible investing began in the 1960s with the attention focused on women’s rights, civil rights, and anti-war agendas.  Over the last few decades, causes and opportunities have changed and often go hand-in-hand with the current political and social climate and popular activist causes.

Now, in the digital age, social causes have a greater platform and following than ever before.  Large companies are under the microscope by both their customers and investors who have more visibility and easier access to company communication.  Companies that invest their time and resources towards a social responsibility platform are lauded for the actions.

Why choose Socially Responsible Investing?

There are two reasons investors begin investing in socially responsible portfolios – to make a social or political impact and for financial gain.  As savvy investors are quick to note, just because an investment is seen as socially responsible doesn’t mean that it will provide a good return. An important consideration is still needed to assess the past performance and future financial outlook of the investment.

At Invested Interests, we’ve taken the guesswork out of searching for companies that fit with the ethical and social standards for our client’s social impact goals.  We’ve put together four, top-tier portfolios focused on current and popular issues in the United States and throughout the world: Peace, Human Rights, Environment, and Diversity & Corporate Governance {links}.

Questions about socially responsible investment practices or want to learn more about our investment portfolios?  Ready to get started with no minimum investment? Reach out to us @ info@investedinterests.com