Socially responsible investing goes mainstream

Blanchard: Socially responsible investing goes mainstream

Different approaches to “investing for good”

Determining what suits your own preferences as a socially responsible investment is clearly a personal decision. Some of the approaches used today include:

• Avoiding specific investments – staying away from investments in what some would refer to as “sin” stocks, such as tobacco, alcohol and gambling firms. This “negative screening” process can also include companies involved in the defense business or in certain industries that may have a harmful impact on the environment (i.e., oil companies, pesticide manufacturers).
• Investing in companies that promote causes – this may include firms focused on sustainable approaches to growth that consider what’s best for the health of the planet, for example. In other cases, it might be firms that promote specific social stances such as worker’s rights.
• Investing in firms in specific industries – companies that address long-term societal issues, such as clean energy or responsible water usage, may be attractive to some investors.

Excerpt taken from article written by Seth Blanchard and posted by Vermont Biz at: http://vermontbiz.com/news/july/blanchard-socially-responsible-investing-goes-mainstream