You should never have to compromise your own values for the sake of financial gain. Socially responsible investing is an investment strategy that focuses on promoting financial return through ethical and environmentally conscious organizations. This allows you to promote the causes you care about while also benefitting financially.
Increasingly Becoming More Popular
This type of investment has become increasingly popular in recent years. The combination of society’s green movement and what seems to be an ever-growing list of companies that are exposed for poor corporate practices has greatly contributed to the widespread backing of this investment style. Whether it’s the mistreatment of their employees, or a complete disregard for our environment, these acts are unethical. Now, you can finally invest in your future while supporting progressive companies that are committed to ethical practices.
Attributes of SRI Investments
The goal behind SRI is to invest in companies that align with your own personal values. These types of companies most commonly promote environmental stewardship, ethical human rights practices, and workplace diversity. Additionally, investors will avoid companies that are perceived to have negative social effects that promote products like tobacco, alcohol, gambling or fast food.
How to invest in SRI
Socially responsible investors have a wide array of options. Of the many types of investments, the most common include:
- SRI Mutual funds/ETFs. These investment accounts allow you to diversify your portfolio with help from financial managers and research teams. There are hundreds of various funds that meet the ethical requirements for SRI.
- Micro finance investments. This strategy allows you to maximize the value of your dollar by investing through micro finance institutions. This type of investment allocates large quantities into underserved countries to help finance projects that traditional financial banks can’t fund.
- Community investments. SRI investors can also directly invest in local communities. You can do this by funding community development institutions such as local banks, and credit unions which provide financial services to low income areas.
If you are interested in growing your financial assets in an environmentally-friendly way, the best online investment companies like BeniGro LLC will be happy to discuss these concepts in more detail.