Socially Responsible Investing Basics for Individuals

Social Investment ForumMake a Difference with Socially Responsible Investing.
Your savings and investments can help create a better world by building healthy communities, promoting economic equity, and fostering a clean environment.

What is Socially Responsible Investing?

Socially Responsible Investing (SRI) is a broad-based approach to investing that now encompasses an estimated $2.71 trillion out of $25.1 trillion in the U.S. investment marketplace today. SRI recognizes that corporate responsibility and societal concerns are valid parts of investment decisions. SRI considers both the investor's financial needs and an investment’s impact on society. SRI investors encourage corporations to improve their practices on environmental, social, and governance issues. You may also hear SRI-like approaches to investing referred to as mission investing, responsible investing, double or triple bottom line investing, ethical investing, sustainable investing, or green investing. Learn more about SRI >

How You Can Get Involved?

The power of responsible investing is exercised in several ways:

  • Divert investments away from institutions or businesses that pollute or cause harm to the environment, conduct business in oppressive regimes, use unfair labor practices, produce nuclear weapons or nuclear power or employ other practices damaging to the quality of life.
  • Invest in companies and institutions whose products, services and practices contribute to a more socially just and sustainable society. Invest money in community banks, loan funds and similar financial vehicles.
  • Make a small investment in a company in order to influence the direction of business. Use shareholder activism to make a positive change to business practices.
  • Invest in community investing institutions such as community development banks, credit unions, or loan funds. You can find federally insured options and your dollars will help provide access to capital and basic financial services to low-income communities.

Learn the Basics & Get Started

Socially Responsible Investing is a very powerful tool to create positive change. Learn more about SRI:

Investing requires knowledge of investment options, the market, and available resources. Please, remember to consult a professional financial planner before deciding on an investment strategy. Here are some resources to help you start smart.

Financial Services Directory

Find socially and environmentally responsible financial planners, banks and credit unions, mutual funds, retirement options, and more in SIF's member directory.

SIF Publications

The Social Investment Forum provides access to a wealth of information on corporate governance and social and environmental issues, as they relate to investment. Visit our Publications page.

SIF Research

Research continues to demonstrate the positive effects of socially responsible investing. The Social Investment Forum coordinates and funds original research projects on socially responsible investing. Please visit our Research page to learn more.

Mutual Fund Performance Charts

A public tool to research and compare funds based on factors such as screening, performance, and proxy voting policies before investing.

Community Investing Center

Through community investing you can begin helping economically disadvantaged communities create jobs, homes and improve the environment. You can help to accomplish these objectives and many more by simply opening an account in a community development bank, credit union, or investing in a loan fund. Please visit the Community Investing Center and get started with Community Investing.

News and Recent Developments

For SRI industry news, please visit our News page often for updates.

Links

Discover More Information on Socially Responsible Investing through the below institutions and organizations:

Research & Tools
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