Socially responsible investing (SRI) is on the rise. As responsible investors become more aware of their money’s impact on the world around them, they are looking to make more socially conscious decisions with their investment dollars.
SRI has been around since the late 19th century. It all began when a group of concerned citizens, inspired by public education efforts, decided to use their money to support social causes.
SRI involves ethical investing. This means that when money managers put their money towards an SRI fund, you are not only receiving a financial gain for your investment, but you are also supporting community investments, causes, companies, and organizations that align with your values.
What do you care about? Are you concerned with climate change? human rights? Board Diversity? Animal rights? Civil rights? When deciding on an SRI fund, these questions should be at the forefront of your mind.
Look into mutual funds that match your values and make sense for your financial and social goals. Assess the risks involved when making an investment decision based on what’s important to you.
This step ensures you practice impact investing also known as positive investing. How will it benefit others? Will it make a difference in the world? Answers to these questions will help you understand what you are getting into.
It would be best to determine how your investment decisions are made and your current conventional investing policies. One thing to consider is whether you’re using a proxy voting service or relying on your research.