A lot of people have begun to really focus on social issues when they are making their investment choices. Find out more about socially responsible investing to see if it is something you should be considering.
Clearly, when you make the choice on where to invest your money, the biggest concern is investing with a company who will make money for you.
However, more and more people are beginning to also consider their ideals and values when they make investment choices.
This is also called socially responsible investing or values-based investing.
Investing in a socially responsible manner is choosing to invest in companies who have policies and values that you support. In many cases, these values include things like:Environmental issues Human rights Employee protection issues Faith based issues
For example, if the environment is a big concern for you, the investments that you make would be focused on companies who work for environmental change or who have taken steps to dramatically reduce their carbon footprint.
In the past, investing based upon your values was considered more of a philanthropic adventure. You could invest your money in companies promoted the same value you have, but you probably weren’t doing it with the expectation of making money.
However over the last few decades, this has changed. Values based investing is now a legitimate investing option and a proven way to invest your money. $3.1 was invested in 2010 in businesses that were determined to be value based.
The purpose of investing is to give money to a company that will use that money to grow. Some of that growth will be returned to you.
The benefit for socially responsible investing is the opportunity to “put your money where your mouth is”. When you invest in a company you believe in, you will get the return on your investment and also the satisfaction of knowing that you helped a good company get even better.
Here are several of the types of companies that many people choose to invest in because of the added bonus of being socially responsible.
Companies that focus on:Clean energy Being environmentally sustainable Support human rights Doing work to reduce poverty, violence or hunger Value consumer protection
Before you can make investment choices, you have to decide which of your values you want to support with your investment.
Once you decide that you are interested in values based investing, you have to find out what options are available to you.
Since being socially responsible has become such an important topic to many people and organizations, this is easier than...