Skip to main content

Posted 21 March 2023

Socially Responsible Investing

Socially Responsible Investing (SRI) is the practice of putting your money into investments with a level of social benefit, be it environmental, social, or something else entirely! Some companies put emphasis on upholding or perpetuating a moral or ethical standard of operation that goes beyond was is expected and required of them, and investing with these companies can help them continue doing things you care about as well as contribute to your future.  

Environmental focus 

Some companies put an emphasis on being environmentally conscious. There are various strategies for this, such as companies that are carbon neutral or negative, or that use sustainable energy practices. Other environmental investments include companies that produce sustainable energy sources or facilitate the integration of these sources into everyday life. As new legislation and an environmentally conscious population moves into the future, there will be an increased emphasis on operating in this way.  


Social focus 

Companies that place value on people and community operate in various ways. This can come in the form of sponsorships of local community programs or promoting volunteering. Another strategy is to place high value on human capital — or the value of employees. This can come in the form of higher wages, better benefits, or a strong focus on culture. Companies that do this often find they attract and retain the best talent and are therefore more comfortable putting in the resources to develop that talent even further. Better, happier employees tend to do better work, which can reflect positively from a business standpoint.  



Companies that set their corporate or leadership structure in a way that is aligned positively with investors are also viewed favorably by socially conscious investors. Promoting transparent practices and decision-making are things active shareholders value. These investors might also place high value on shareholder voting rights and the types of decision-making offered to the voters. 


Where to start 

Companies that go above and beyond tend to let the public know of their efforts. If you believe in the performance of a company doing good things, consider investing with them! For example, look up which companies lead their industry in pay and consider whether you think this makes them a better business and investment.



©2023 Reseda Group LLC, used under license.