Socially Responsible Investing: How can personal values and investments be aligned?

Alongside financial return, many investors care about the social and environmental impacts of the companies in their investment portfolios. Companies' policies and practices with respect to issues such as human rights, global warming, labor standards and executive pay are among the many issues that investors prioritize. More important, individuals and investors can take action on these priorities by engaging in and promoting Socially Responsible Investing (SRI) strategies.

SRI offers investors and savers three distinct yet complementary strategies for aligning their personal values with their investments. These strategies are social screening of investments to emphasize best-in-class companies, shareholder advocacy designed to improve social and environmental practices of companies and proactive investing in specific markets or communities.  

Many investors and savers find that an integrated approach to SRI can produce a "double bottom line" of both competitive investment results over the long term alongside positive social and environmental benefits.

All three SRI strategies have all shown significant growth stemming from many factors. One key factor is simply the belief that improving the social and environmental practices of companies is not just the responsibility of governments but of investors as well.  Importantly, the range of SRI solutions has continued to evolve to meet the resulting demand.