For many years, money that was used for good will was called charity and money used to make more money was called investing. Not anymore.
Nowadays, the two ideas are combining into a financial area called socially responsible investing. And both investors and mutual fund managers are figuring out that this new idea can be very rewarding, as well as do some good for the environment and society.
“Socially responsible investing means you don’t have to compromise your own personal beliefs to make money on Wall Street… whatever those beliefs are,” states Bob Guthrie, who is 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 type of investing has mushroomed during the past few years as more and more investors have moved social consciousness into the mainstream of investing. And the impact is being felt.
Rob Kruger, vice president of portfolio management at Progressive Asset Management says that with help from stockholders, business practices concerning the environment are starting to change. He said while the issues may vary, companies are realizing they will suffer if they aren’t viewed as being socially and environmentally responsible.
“As this investing community continues to grow, a lot of proposals are being put forth by investors at annual shareholder meetings,” Kruger said. “A whole range of issues and activities is now being addressed.”
As part of its operational procedures, Progressive Asset Management conducts research for eco-friendly and socially responsible mutual funds. The firm filters out companies for environmental problems or nuclear involvement or whatever issues their clients are concerned about.
“As the clock ticks, companies are becoming more and more cooperative with us,” Kruger said. “A lot of them are now very anxious to talk about these social and environmental issues.”
Guthrie agrees that business practices are changing and says American companies are aware of shareholders 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. “Be sure to keep these things in mind when you invest and companies will too.”
Related posts:
- Where Are the Best Investment Properties for Beginners? by Tarra Jacobs When...
- Green Lawsuits are Here by Michael Richmond Attorney...
- Real Estate Investing: Looking For Wholesale Buyers And Sellers by May C For those who are...
- The Stock Market: Investing Direct and Investing in Utilities by Zindy Maseko There are...
- Using Intelligent Reporting Can Benefit Your Business by Elizabeth Murphy When a...
0 Responses to “Investing in Green Businesses”