Socially responsible investing, SRI for short, goes by a variety of names, each of which contain subtle differences in meaning. Along with SRI, you’ll also hear of sustainable investing, ethical investing, values-based investing, and environmental, social, and corporate governance (ESG).
No matter which name it goes by, socially responsible investing describes an approach that emphasizes your ethical, social/community, political, and/or religious goals when choosing where to invest.
Sometimes this is a requirement. For instance, foundations and endowments are often required by their charters or donor stipulations to invest in or avoid investments in certain industries or companies. Weapons manufacturers, for instance.
Even for individual investors who are free to invest where they want to, the bottom line is they increasingly want their values and their investments to be in sync.
And they expect to do well financially while doing good.