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« A Special Loan Package For Automakers? | Main | What Caused the Global Recession? »
Sunday
16Nov2008

Values and Value in Socially Responsible Investing

Ken Little is the author of thirteen books on investing and personal finance and the technical editor on two others. He is the writer and editor of the Stocks Web site on About.com (www.stocks.about.com), where he writes articles for beginning and intermediate investors.

He has worked on both sides of the financial services industry, as a journalist and as an industry professional. Ken was the chief financial writer for one of the larger mutual fund families and worked with a consulting firm that counted some of the largest financial services companies in the country as its clients.

Ken was the Vice President of Marketing for a major financial services company in Texas. Prior to that, he was Business Editor of a major daily newspaper.

Ken Little--

You recycle. You drive a fuel-efficient vehicle and take alternate transportation when you can.

You are opposed to war and believe in workers earning a living wage.

Does it make any sense that you are an owner of major polluters or huge energy companies that dominate markets and even governments?

How do you reconcile owning companies that make and distribute to the highest bidder, weapons of destruction? Why is it OK to own companies that export jobs to countries where workers have few, if any, rights?

Don’t remember buying any of these stocks?

A quick look at the components of most major mutual funds will reveal ownership in companies that may not share your values.

Socially responsible investing (SRI) is an attempt to add personal values into the investment equation.

It is not an easy task. Critics claim it is a fool’s errand.

SRI in America began with people who found owning slaves and the production and sale of alcohol morally troubling. They refused to invest in or do business with companies connected with practices that violated their religious or social values.

SRI has come a long way since then. It gained popularity in the fight against apartheid in South Africa and the Vietnam War.

Social and religious issues remain popular with SRI investors, however the movement has been energized (pardon the pun) by the environmental movement.

Green investing is a popular and growing segment of the financial services industry.

Despite the current problems in the market, many SRI investors remain true to the strong belief that their investments should be guided (or at least influenced) by their social and religious values.

Is SRI right for you?

The Difference Between An Investor and A Trader

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