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What is a ‘Socially Responsible Investment’?

November 15, 2017 By Matt Thomas Leave a Comment


Advantages of Socially Responsible Investing:

A Socially Responsible Investment is an investment considered to be socially responsible due to the nature of the business being invested in. For example, an investment in a company that conducts business in environmental sustainability (clean/alternative energy) or social justice (human rights, diversity, etc.) would be considered socially responsible.

The opposite of a socially responsible investment, on the other hand, would be would be an investment in a company that produces or sells addictive substances (drugs and alcohol), promotes gambling, or other products/services considered to be unhealthy or harmful (fast food, weapons, etc.). When socially responsible investors are researching investments to put their money into, they consider not only their own individual financial return, but also the impact it can have on society as a whole. The overall concept is that socially responsible investing will allow money to flow into companies that are doing the most good and creating positive social change, which in turn allows us as a society to prosper while living safe, healthy, and fulfilled lives.

Related Post: Best Swing Trading Sites and Services For Beginners

Filed Under: The Daily Dose: Thought-Provoking Questions For Stock Traders

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