The World of Socially Responsible Investments
The concept of green investing has given rise to the term called Socially Responsible Investments or SRIs. Socially responsible investing focuses on maximizing financial gains while combining it with social good. The people involved in such investments work in sync with environmentalism, quality and consumer protection norms. The idea is to earn money through fair means and while doing fair practices towards the society as a whole. Some of such investors avoid taking up businesses involved with alcohol, tobacco, gambling and alike.
History of Socially Responsible Investments
The history of social investing ways back to 1758 but a single origin is hard to define. Religious institutions have also played a major role in instigating people to think towards social wellbeing. The whole idea behind the concept is to curb such businesses that harm the individuals as well the society in one way or the other.
In the modern times, SRI has evolved as a very popular concept in US and Europe. The SRI assets have whooped up from $639 million in 1995 to $2.71 trillion in 2007 and the market is expected to rise up to $3 trillion by 2011. The figures are evidence enough of the growing popularity of the concept.
Modern Applications of Socially Responsible Investments
Some of the modern applications of SRI are in the form of government controlled funds like pension funds. There have been constant efforts to adopt investment policies that encourage social behavior, employee rights and environmental concerns. Also, socially responsible mutual funds have found a way in the market and are doing more than good for themselves as well as the investors. A lot of new funds are being introduced and the market is booming like never before. As per the reports of Social Investment Forum, SR mutual funds have grown even when the whole mutual funds market was contracting.
Separately managed accounts are the next application of SRI. These are the accounts that are managed by individuals or institutions, privately. Shareholder advocacy and community investing are the other applications of SRI.
Alternative Energy and Socially Responsible Investments
The experts believe that the natural resources like oil and coal are depleting gradually and the world is moving towards alternative energy resources like solar energy. In such a scenario, it would be wise to invest in such options that are going to experience an all time high, shortly.
Socially responsible investing helps you earn money with peace and principles. You may not necessarily get involved in some malpractices or ill businesses to earn big bucks. It helps you stick to your values and make money as well. The modern investor is very vigilant and hardly willing to invest in corporate that experience frequent labor shutdowns or fight a new litigation everyday. Therefore, Socially Responsible Investments are actually an incarnation of the idea that profit and social responsibility are not mutually exclusive.
