Socially Responsible Investing

For many  people good citizenship involves, among other things, doing their part for the environment by driving fuel-efficient cars, buying fair trade and/or organic foods, recycling their garbage or using energy-efficient light bulbs and appliances. It is also possible to promote good corporate citizenship through socially responsible investing (SRI), also known as “green” investing. SRI gives corporations an incentive to improve their social and environmental stewardship.

Socially responsible investing means making investments in companies weighing the impact of corporate policies on society and the environment. SRI supporters expect every corporation to act in accordance with basic human values and ethics. These include human relations, waste cycling, policy of non-discrimination, eco-friendly products and practices, community involvement, no involvement in "objectionable industries" such as firearms, alcohol and tobacco etc.

SRI may be an appropriate strategy for people wishing to:

• Align their investment dollars with their personal values by avoiding companies that they feel do not represent those values
• Encourage companies to improve their corporate social and environmental performance and adherence to ethical standards.
• Identify companies' long-term financial performance through the analysis of social, environmental and ethical factors.

For many investors, mutual funds provide the research, professional management and diversification for their investment strategies.

In the case of SRI/green investing, companies may be screened according to social research, shareholder advocacy, community investing, environmental practices and social venture capital.

Screens may exclude companies with unacceptable practices or unacceptable products such as tobacco or alcohol. Positive screens recognize companies with acceptable practices in the defined areas such as labor relations or environmental practices.

There are several mutual fund companies with a variety of SRI funds. It is possible to create a diversified investment portfolio in harmony with your financial objectives and values.