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Socially Responsible Investing (SRI) is an investment process that considers the social and environmental consequences of investments, within the context of rigorous financial analysis. It is the combination of a Financial Return on Investment (F-ROI) and a Sustainable Return on Investment (S-ROI). SRI is for investors looking to put their money to work to meet financial goals while building a better, more just and sustainable economy. SRI considerations include environmental issues, social conditions (such as employee rights and living wages), shareholder referendums and resolutions, sustainability of resources and processes, etc. Socially concerned investors pursue the same economic goals as all investors: capital gains, higher income, and/or preservation of capital for future needs. However, these investors also want their investments to not harm the social and physical environment, and possibly enhance sustainability. In the conventional sense, SRI refers to investing in for-profit publicly traded businesses. SRI is distinct from what is commonly referred to as social investment, where grants, gifts, or contributions are made to non-profit entities in which no financial return on investment is expected, including return of principal. Social investors include individuals, businesses, universities, hospitals, foundations, pension funds, corporations, religious institutions, and others. |