Socially Responsible Investing

In: Business and Management

Submitted By maryscry5
Words 661
Pages 3
Mary Harrigan
Financial Management RTG
Professor Kevin Mirabile
April 4, 2014

Socially Responsible Investing
Socially responsible investing is a process of investing in which traditional financial analyses are coupled with an evaluation of a company’s corporate citizenship in order to best determine if a company is inline with potential shareholders’ vision. Socially responsible investing extends beyond analyses of a company’s financial activity through the incorporation of analyses related to environmental, social, and governance issues. This report will examine the origins of socially responsible investing, how it works in practice, its performance relative to non-socially responsible investments, and what role it will play in regard to my future personal investment portfolio. Socially responsible investing rose in popularity during the 1960’s due to the heated political climate. At this time, shareholders prompted companies to act in accordance with their political beliefs as issues like the Vietnam War, civil rights, and equality for women took the national spotlight. Throughout the 1980s, the Apartheid crisis in South Africa further mobilized socially responsible investing as shareholders’ investing strategies became focused on pressuring the South African government to repeal the Apartheid. In more recent years, issues such as gun control, human rights, and healthy working conditions have been the most common platforms in which shareholders advocate for (Schueth). Moreover, shareholders have either urged companies to act in accordance with their beliefs or have chosen to invest in companies that align with these beliefs. The process of socially responsible investing is carried out either through shareholder advocacy or through community investing. Shareholder advocacy is the methods in which shareholders actively engage the company to make…...

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