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Socially responsible investing

Socially responsible investing is also known as ethical investing or social investing. It involves making the investment policies of an organisation in tune with its mission and values. It involves making cause-related investments that have positive social impact.

Some companies refrain themselves from investing in industries those have products or services inconsistent with their values and policies. They make only such investments that aim at both financial returns and social good. Mostly, socially responsible investors believe in investments that support environmentally friendly and socially responsible practices.

Socially responsible investors refrain themselves from investing in some investments such as tobacco, alcohol etc .They generally make investments that support causes that is perceived by their companies as important. In this way, they get twin benefit of earning returns on their investments and working for social good. In simple words, this is a form of positive investing that involves making investments which can have positive impact on the society.

More Glossary Terms Explained here


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