Socially Responsible Investing

2179 Words9 Pages
Table of Contents Introduction 1 What is Socially Responsible Investing? 2 History 2 Comparison of returns between Corporations that adopted SRI and the largest 500 4 Exhibit 1 5 Exhibit 2 6 What future holds? 7 Conclusion 8 References 9 Introduction Socially responsible investing (SRI), also known as sustainable, socially conscious, "green" or ethical investing, is any investment strategy which seeks to consider both financial return and social good. This paper would argue that SRI is not only beneficial because it is sustainable policy but also that it yields almost the same or even higher returns for its investors. First, paper would give general information about SRI, its history and development issues. Then, it would focus on the financial returns to shareholders and argue that return on investments for companies that adopted SRI in their policies is the same as the general market. Finally, it would talk about what are the future prospects for companies that adopted SRI policy despite some of the latest drawbacks. What is Socially Responsible Investing? Generally speaking, socially responsible investors spur corporate practices that advocate environmental stewardship, consumer protection, human rights, and diversity. Some shun businesses specialized in alcohol, tobacco, gambling, pornography, weapons, and/or the military. The focus of concern recognized by the SRI industry can be summed up as environment, social justice, and corporate governance — as in
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