The Informed Investor

Socially responsible investing (SRI) involves taking your investment dollars out of companies or funds whose values or actions you find objectionable and putting them into companies that align with your values and that have impactful environmental, social, and governance (ESG) practices. In this way, socially responsible investing can support issues like climate change, pollution, discrimination in the workplace, and diversity. By avoiding stocks of companies with practices you believe are questionable, you are signaling to companies that it’s important to do business ethically as well.

Know What Social Responsibility Is

Generally, social responsibility means the company is doing things to enhance its community, equality, country and environment. There are many ways to measure how responsible a company is in these areas, but one way is by looking at its sustainability reports. These reports tell you about all of the efforts they have made and what they plan to do in the future. If a company does not report on this, it may be because they do not want to show that they are not focused on these.

Examples Of Socially Responsible Investing (SRI)

There are many different types of socially responsible investments. One example of a socially responsible investment strategy is to avoid companies that may conflict with your values, such as gambling, alcohol, firearms, or production of tobacco.  People may also choose to invest in companies that commit to various environmental or social goals. Investing in companies that share your values can be rewarding because you know your money will be helping support a company with good business practices and social responsibility.

How To Choose SRI Funds That Align With Your Values 

In the last few years, a number of SRI products have been introduced to the marketplace. These products, which include mutual funds and ETFs, provide investors with an opportunity to develop a strategy with the hope for growth as well as doing good. They allow investors to choose what types of investments they want to put their money into, whether it be renewable energy, equality in the workplace or fair-trade goods.

Choosing socially responsible investments can seem daunting, but with the help of an experienced fiduciary investment advisor it doesn’t have to be. When you’re looking for an SRI fund, you’ll want to consider three things: the company’s social responsibility record, the company’s financial performance, and its management. Once you’ve narrowed down your choices, work with your advisor to learn if there are any pitfalls based on these or other criteria. Research whether there are any extra fees and historical performance. Some SRI funds may cost more than others if they pay extra out-of-pocket expenses such as providing more information and transparency about their holdings or their impact.

Want To Learn More About Socially Responsible Investing?

The fiduciary financial consultants at the Investment Counsel Company (ICC) are dedicated to helping clients work toward their financial goals, including recommending socially responsible investments that align with their personal values.

If you have $15 million or more of investable assets, please visit our website at www.iccnv.com or call us at 702-871-8510 to learn more about how we can help you and your family achieve all that is important to you.

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