Socially Responsible Investing*

DOES YOUR MONEY HAVE A MISSION?


"Motivated by a sense of responsibility that has financial, social and ecological dimensions, socially conscious investors understand that investment returns over the long term are driven primarily by the performance of innovative, well managed corporations that are dependent on the health of human societies and ecological systems that sustain all economic enterprise." From "Socially Responsible Investing in the United States", by Steven J. Schueth, March 2006.


WHAT IS SOCIALLY RESPONSIBLE INVESTING?


Socially Responsible Investing can be defined as the process of integrating personal values, societal concerns, and/or institutional mission into investment decision making. (Schueth, 2006)

Socially Responsible Investing is characterized by three strategies:

First is Screening the application of social and environmental screens, both positive and negative, to determine the merits of investing in a company.

Second is Shareholder Advocacy the engaging in dialogue and proxy voting to influence company management and corporate behavior.

Third is Community Investing the directing capital to people in low income communities.

According to the Social Investment Forum's "2005 Report of Socially Responsible Investing Trends in the United States", socially responsible investing grew from $639 billion to over $2 trillion between 1995 and 2005. This growth is attributed to:

  • Increase of information and more educated, informed investors,
  • Desire of investors to integrate personal values into investing,
  • Greater availability of investment options,
  • Prevalence of corporate scandals and perceived lapses in ethics,
  • Increase in women corporate leadership and investing, and
  • Growing public interest in sustainability.

Bayport Financial can help you integrate your personal values and social priorities into investment* decision making. Contact us for a free consultation.