Socially Responsible Investing
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by: EarthNewsMedia
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Today, the two ideas are coming together in a financial avenue called socially responsible investing. And both investors and mutual fund operators are learning that this new idea can be profitable, and do some good for the environment and society at the same time.
"Socially responsible investing means you don't have to compromise your own personal beliefs to make money on Wall Street -- whatever those beliefs are," said Bob Guthrie, an investment broker with A.G. Edwards in Burlington, Vt.
The idea of selectively choosing stocks for social reasons dates back to the early 1900s, Guthrie said, when church members banded together and refused to invest in tobacco or alcohol companies. The trend continued with investors dodging corporations involved in the Vietnam War, he added, and most recently revolved around companies investing in South Africa.
But growth in this form of selective investing has skyrocketed during the past couple of years as more and more individuals and corporations have moved social and environmental consciousness into the mainstream of their investments. And this impact is being felt worldwide.
With help from stockholders, business practices concerning the environment are starting to change, said Rob Kruger, vice president of portfolio management at Progressive Asset Management. While the issues may vary, he said companies are realizing they will suffer if they aren't viewed as being socially responsible.
"As this investing community continues to grow, a lot of proposals are being put forward by investors at annual shareholder meetings," Kruger said. "A whole variety of issues and activities is now being addressed."
As part of its operation, Progressive Asset Management conducts research for socially responsible mutual funds. The firm screens companies for environmental problems or nuclear involvement -- whatever issues their clients want investigated.
"As time flies, companies are becoming more and more cooperative with us," Kruger said. "Many of them are now very eager to talk about these social and environmental issues."
Guthrie agrees that business practices are changing and says American corporations are aware of stockholders who are concerned with the environment.
"Make sure your hard-earned capital is not invested in companies with little concern for the environment," he advises. "Keep these things in mind when you invest and corporations will, too."
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