Investing with your values, considering social and environmental factors when choosing companies to invest in.

It's the wave of the future, with great returns!

Investors avoid companies that have a negative effect on their surroundings, like tobacco, weapons manufacturers, oil industry.

Instead, SRI or socially responsible investors, look for companies that makepositive impacts in areas like climate change, natural energy, and worker's rights.

Another strategy is community investing - investing in small businesses and community development projects, along the lines of the Nobel peace Prize winning microbanking.

Shareholders are also encouraged to exercise shareholder advocacy - encouraging companies that they hold a share in to act in a responsible, caring manner.

Credit Unions are famous for trying hard to be NOT like the banks, treat customers as people and not account numbers, and being socially responsible.

In Vancouver, VanCity Credit Union has had a great success with ethical mutual funds from Circadian Mutual Funds.

Here's their philosophy:

There are many paths to profits. But our mutual funds follow a different path. Our top priority is to strive for excellent returns, but we're also committed to investing in companies that use progressive social, environmental and corporate governance practices in managing their business. We believe it's the balanced, forward-thinking companies that will ultimately perform the best.

It's a unique approach that enables you to:

* profit wisely
* invest responsibly
* encourage progressive companies

Whatever your resources, socially responsible investment (SRI) can help you fulfil your dreams, and make the world a better place. SRI means you can channel your money away from industries that contribute to the destruction of the environment, companies employing sweatshop and child labour, business involved in animal experimentation and corporation that support repressive and brutal regimes

Like any investor a socially responsible one wants to see a sound return on their investment but they also want to invest in companies that demonstrate social and environmental principles. Even though SRI means limiting choice in types of investment it has not led to any systematic under performance in stocks, in fact it have done as well as or better than others on the market.

SRI developed in the USA as a response by concerned Quakers and other people disgusted that their investments were supporting the arms trade and the Vietnam war. Since then SRI has become a growing market within the UK, and is increasing at about 34% per year Socially responsible investors include institutions such as non profit organisations, Churches, trade unions, universities and individuals from all walks of life. What they have in common is a commitment to channelling their money towards investment that reflects their personal ethics and values. You don't have to have lots of money to be a socially responsible investor although a minimum commitment is like with most funds about 50 pounds a month.

There are two main strategies to SRI: Avoidance Screening - choosing not to invest in industries for example, those with discriminatory employment practices, business activities with repressive governments, poor environmental records, animal testing, weapons contractors and the tobacco industry.Affirmative Screening - Actively seeking out investments in activities to support such as alternative energy and natural foods, companies that show commitment to their workers, communities and the environment.

About the Author

I work for the ethical directory which sells fairtrade goods plus we have Ethical Company articles for you to read or publish.

SRI

Socially Responsible Investing is what SRI is an acronym for.Of course, Socially Responsible means different things to different people and to different funds and index managers as well.

Try to make sure that you are involved in SRIs that are right for you.

2. SRI Funds

What SRIs include can vary. Some funds will exclude any stock whose company might be involved in animal testing. Some funds put more emphasis on how a company treats its employees. This process of inclusion or exclusion is called screening, and each fund has its own screening criteria. Knowing the screening criteria can be a big help in deciding which fund is right for your style of investment.

3. Well know SRI indexes

The completion of the series extended the availability of information on Socially Responsible Investments to cover 90 percent of the worldâs financial markets. According to FTSE The FTSE4Good index series was created to provide SRI Investors with an independent and accurate tool to measure the performance of companies meeting international CSR standards. FTSE for good and the Dow Jones Sustainability Index are the most commonly known SRI indexes.

4. Dow Jones Sustainability Group Indexes

Companes have been screened by the Dow Jones Sustainability Group Indexes based on certain things since 1999. The foundation for them is a cooperation.

5. The Future Of SRI

An important thought leader study, The Future of Socially Responsible Investment, was published in 2005. It captured and analyzed the 10-year-ahead thinking of 42 of the world's leading SRI practitioners, who collectively see SRI, and in particular Screening, as becoming mainstream investment practice -- entirely because SRI analysis does provide valuable insight into management's ability and thoughtfulness. Other significant trends include the continued growth and robustness of Community Investing, and in particular the evolution of Shareholder Engagement as the defining factor that distinguishes the 'Deep SRI' firm from others.

About the Author

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