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Socially Responsible Investing

By: Earth News Media


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For a very long time, money used for good will was called charity, while money used to earn more money was called investing. That's not the case 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," said Bob Guthrie, an investment broker with A.G. Edwards in Burlington, Vt.

Guthrie says that the idea of selectively choosing stocks for social reasons dates back to the early 1900's. That's when church members grouped together and refused to invest in tobacco or alcohol companies. He adds that the trend continued with investors ignoring corporations involved in the Vietnam War and those companies investing in South Africa.

So, yes, growth in this type of investing has ballooned during the past few years as more and more investors have moved social consciousness into the main street of investing. And the impact of this trend is being felt.

With help from stockholders, business practices concerning the environment are starting to change, said Rob Kruger, vice president of portfolio management at Progressive Asset Management. While the issues may vary, he said companies are realizing they will suffer if they aren't viewed as being socially responsible.

"As this investing community continues to grow, a lot of proposals are being put forward by investors at annual shareholder meetings," Kruger said. "A whole variety of issues and activities is now being addressed."

As part of its operation, Progressive Asset Management conducts research for socially responsible mutual funds. The firm screens companies for environmental problems or nuclear involvement -- whatever issues their clients want investigated.

"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 American corporations and business practices are aware of stockholders who are very concerned with social and environmental responsibility.

"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."

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Earth News Media and its members have written and published several books and news columns focused on environmental issues. Earth News Media features global warming articles, ozone depletion, air and water pollution, climate change and more. This and other unique content 'climate change' articles are available with free reprint rights.



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