In Blog

Imagine if more companies were considerate toward the need of the community and welfare of the environment. By encouraging their efforts, there can be more advancement in renewable energy, human rights and other social issues. At the end of the day, you can help by investing in corporations focused on improving the welfare of the community and environment. It all starts with socially responsible investing.

When following this investment strategy, you can receive a return on investment, while also promoting social responsibility. These types of investments are typically rewarding for both the investor and the community. With socially responsible investments (SRI), companies are held to a higher standard in terms of social and environmental practices. The funds encourage companies to take different factors into consideration, such as workplace practices, environmental concerns, product safety, and human rights, which contribute to the overall impact on society. The result is a better world today and in the future.

What is Not Considered Socially Responsible

Socially responsible mutual funds may exclude certain industries, such as tobacco, gambling, or weaponry. These funds steer clear of such industries, as they promote products that could harm the well being of an individual. The decision to stay away from those types of industries is very significant, since social responsibility focuses on critical issues, such as environmental improvement, employee relations, and community values.

Shareholder Advocacy Positively Changes Social Policies

The screening process for SRI is an essential component in maintaining the social responsibility of a company. Socially responsible mutual funds take these standards into account and act as “shareholder advocates.” What exactly does that mean? A mutual fund’s investment management team can serve as a voice for the fund’s shareholders by initiating discussions with company management about social policies, supply chain integrity, community involvement, and human rights. Mutual fund shareholder advocacy includes filing corporate resolutions and voting proxies in an effort to positively change social policies.

Shareholder advocacy on social policies is a long and tedious process and involves ongoing discussions with corporate management. Many corporations are not always agreeable with suggestions for social change. However, with diligence, shareholders can help corporate management understand the positive financial implications of improved social policies. This can be very significant to investors who want to do as much good as possible with their money.

Become Part of a Movement

Investors who are interested in socially responsible mutual funds or investments are part of a movement to promote the progress of companies that are large, small, traditional, or modern. There is a ripple effect that occurs as more investors seek out companies that have been screened for social responsibility. It positively influences other companies seeking investor capital.

SRI investing is not just a trend or fad. Today, more people are aware of the impact that companies have on the environment and community. Social responsibility has become a part of every aspect of our lives, as we strive to create a sustainable future for generations to come. Therefore, it makes sense to take into consideration the social implications of corporate policies and practices. You can choose to invest in companies that recognize human rights and environmental alternatives, which will encourage more companies to follow suit. You can make a positive difference that will impact your finances, your family, your environment and your society.

Investment Portfolios That Meet SRI Criteria

Falcons Rock Impact Investments is not just a comprehensive, easy-to-use online platform. We are also real people, who share your values. That is why we focus on creating investment portfolios that meet SRI criteria designed for the socially conscious investor. Contact us now to get started. If you have more questions about Falcons Rock Impact Investments, visit our About page. Join the movement led by today’s investor.