Social Investing
Introduction to social and sustainable investing
The field of social investing is rooted directly in the religious community and now attracts the participation of a wide range of socially-concerned individuals and institutions. In the United States, the investment discipline took hold in the late 1970’s amid the corporate divestiture movement sponsored by religious investors in protest of South Africa’s apartheid regime.
Social Investing
Social and environmental screening
Social investors have remained consistent over the years in one core affirmation. Corporations that combine positive financial performance with socially and environmentally responsible behavior are potentially better long-term investments. On the other hand, companies that deceive investors and consumers, make and sell unsafe products, pollute the earth, and perpetuate the abuse of labor, tend to have greater liabilities and charges against earnings due to regulatory pressures, fines, strikes, and boycotts. Recent high-visibility corporate scandals (Enron, Worldcom, etc.) make these claims all the more credible. Hence, our portfolios are screened for your specific social and environmental concerns. For more, see
Social Investment Forum.
Social Investing
Shareholder advocacy
Social investing is also accomplished through shareholder advocacy. Social investment firms like First Affirmative Financial Network, LLC and religious organizations like the
Interfaith Center on Corporate Responsibility (ICCR), collaborate with investors to hold corporations accountable by:
Engaging in dialogue with company officials;
introducing or co-sponsoring shareholder resolutions;
waging campaigns to get out the vote on shareholder resolutions;
building shareholder advocacy networks with others committed to social and environmental responsibility.
Social Investing
Community investing
Finally, there is community investing. Community investing directly addresses the financial needs of low income and underserved communities. Community development financial institutions (CDFI’s), such as community development banks, loan funds, and credit unions, serve the underserved locally, on the ground. Investing in CDFI’s through products such as bonds, checking and savings accounts, CDs, and money market accounts, helps to alleviate some of the most vexing problems facing humankind today: urban decay, rural poverty, economic disenfranchisement, declining public health and hopelessness, both here and abroad in more than a hundred developing countries. See
Community Investing Center.
