Socially Responsible Investing (SRI) in a Global Economy

Many of us have heard the phrase "do well and do good" but what exactly does that mean? In today's world it means socially responsible investing or SRI.

The idea of socially responsible investing or the marriage of morals and money is certainly not a new idea. Investors from different faiths and cultures have long histories of giving careful consideration to investments, how they affected others and if they were in keeping with their beliefs. For example, Quakers in early America often avoided "sin" stocks, those that involved alcohol, tobacco or gambling.

The ideals of early investors were difficult to maintain as rapid changes gave way to a complex global economy. However, the increasing resources available for socially responsible investing are allowing investors to keep their core values while keeping up with the Joneses.

Let's face it, if we each had a nickel for every mile of pipeline Haliburton laid we'd all be sitting pretty. But the root of our riches might keep some of us up at night. Enter socially responsible investments. Socially responsible investing allows individuals to make investment decisions that are aligned with personal values. These can range from environmental issues to worldwide economic equity.

A good example of socially responsible investing at work is the Grameen Bank started by Professor Muhammad Yunus from Bangladesh. The bank's extension of very small loans to the poor, mostly women, allowed them to set up businesses and transform their lives. The Nobel Prize recently recognized Yunus and the bank with a peace prize for their work in providing micro-credit to entrepreneurs.

Like Grameen Bank, thousands of socially responsible investment opportunities are available worldwide for those who wish to use their savings and investment decisions to help create a better world. Both the investor's financial goals and the investment's impact on society are considered. Social investors are both individuals and institutions like universities, corporations, non-profit organizations and religious organizations.