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Socially responsible investing allows you to put your money where your mind is.
Socially Responsible Investing (SRI) started during the Vietnam War by people who did not want their investments supporting the war. SRI then continued to spread as Americans began screening their investments for issues such as corporate environmental practices, whether U.S business operations in South Africa supported apartheid and how companies treated their employees.
Now, as more people are becoming more savvy investors, some are asking, "Exactly who will spend my investment dollars, how will they be spent and what are the repercussions?" As a result, SRI is becoming even more popular today.
In one sense, SRI is like traditional investing. Socially concerned investors pursue the same basic goals as all investors: generating income or capital gains and/ or preserving capital for future needs. Yet, SRI advocates do not want their investment dollars supporting practices that are known to cause harm to social or physical environments.
Everyone has a different idea of what socially conscious is, so, there are hundreds of social issues of importance to investors. Some of the more common areas screened and avoided by socially responsible investors include:
- Companies or industries known to mistreat the environment, the community or employees.
- Companies affiliated with liquor, tobacco or gambling.
- Companies associated with animal testing.
- Companies that produce weapons or nuclear power.
Avoiding companies that mistreat the environment or their employees means possibly avoiding companies with potentially expensive lawsuits, unhappy workers, and public relations problems.
©2006 Raymond James Financial Services, Inc. member FINRA / SIPC
This site is published for residents of the United States only. Raymond James' financial advisors may only conduct business with residents of the states for which they are properly registered. Therefore, a response to a request for information may be delayed. Please note that not all of the investments and services mentioned are available in every state. Contact your local Raymond James office for information and availability.