Socially Responsible Investing

SRI: Socially Responsible Investing

Socially responsible investing, also known as sustainable, socially-conscious, or ethical investing, describes an investment strategy which seeks to maximize both financial return and social good.

In general, socially responsible investors favor corporate practices that promote environmental stewardship, consumer protection, human rights, and diversity. Some (but not all) avoid businesses involved in alcohol, tobacco, gambling, weapons, and/or the military. The areas of concern recognized by the SRI industry can be summarized as environment, social justice, and corporate governance (ESG).



Launch: Beyond Waste Innovation Challenge

Launch is a one-of-a-kind public-private partnership between NASA, USAID, US State Department, and Nike to use the “power of prizes” to encourage startups to develop an innovative solution that addresses the needs of the developing world. Next up: waste issues.

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My Two Cents on Impact: Putting My Money Where My Mouth Is

A couple of weeks ago I wrote about why I want to become an impact investor and why I chose MicroPlace as my broker. Since then, I’ve been perusing investment options on MicroPlace to figure out where in the world my money is most badly needed—a pretty daunting task, considering that every single investment offered on the platform is worthy.

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Top 5 Triple Bottom Line US Utilities

With the launch of a first-of-its-kind High Performance Sustainability Index for publicly listed US utilities, Target Rock Advisors has identified and ranked the top 5 and 15 US utilities across the three pillars of sustainable, Triple Bottom Line business practices and operations: environment, economy and society. Sure to spur interest among investors, Target Rock found that their shares, as a group, have outperformed the DJIA and S&P 500 over the past ten years.

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One More Step And We Get Supply Chain Cake

Apple released details of its supply chain performance, via an extensive “Progress Report.”  Our friends at Supply Chain Matters provided a link to the report, and to a list of all of Apple’s suppliers.

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Shareholder Resolutions Break Records in 2011

Corporations and governments around the world took notice of the power of the masses in 2011 with the Occupy movement taking center stage. But behind the scene, investors used the power of their proxy and sent strong messages to executives and board members in record numbers to advocate for change at the companies they invest in.

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Mexican Stock Exchange Launches Sustainability Index

this article has been edited since it was first published. Mexico’s stock exchange recently announced the launch of its new sustainability index, which in addition to the FTSE4Good Index and the Dow Jones Sustainability Index, among a few others worldwide. With a total stock value of $450 billion, Bolsa Mexicana de Valores (BMV) is the second largest financial [...]

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Is Guilt a Sustainable Way to Pry Open Pockets?

The following post is part of the course work for “Live Exchange” the foundational course on communication for The MBA Design Strategy Program at California College of the Arts. The rest of the posts are presented here. By Sarah Anne White Why we should run screaming in the other direction from “Gala” or “Gift” Economics How many [...]

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Make Crowdfunding a Part of Your Product Strategy

Crowdfunding sites like Kickstarter and IndieGoGo give social entrepreneurs a way to test product and service ideas, reach new audiences and generate marketing buzz with minimal risk and upfront investment.

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The Walmart “Green” Effect

Why is Walmart such a polarizing force? Perhaps it is because of its sheer scale, its immense presence or the absolute need it represents to so many people in the world as an access point of food, clothing and basic living items for an affordable price.

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Open Letter to the David and Lucille Packard Foundation Regarding Ecosystem Service Valuation

We are MBA students studying the interconnections of sustainability and business at the Presidio Graduate School. As part of our curriculum, we are developing a capital markets mechanism to monetize ecosystem services that would incentivize communities to preserve and/or rehabilitate vital local ecosystems, such as watersheds. This is a letter of inquiry to engage the Packard Foundation (the Foundation) as an investor in a proof of concept pilot project for the above model.

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Interview with R. Paul Herman, Founder and CEO of HIP Investor

R. Paul Herman, founder and CEO of HIP Investor, discusses the difference between impact investing and socially responsible investing, how HIP evaluates firms, and how you can shape your investment strategy to create a positive impact.

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GlobalGiving: Helping Americans Give Smarter

With more causes, more donors, and more philanthropic platforms than ever, who is overseeing the $300B philanthropy market and how are investors and donors kept informed?

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Socially Responsible Investing: How Small Investors Can Drive Change

By Jacen Greene From Quaker prohibitions on slave trading, to boycotts of firms doing business in apartheid South Africa, to analyzing corporate carbon emissions, Socially Responsible Investing (SRI) has come a long way. In a panel session called “SRI 3.0: the Evolution of Socially Responsible Investing” at the 2011 Net Impact Conference, a group of [...]

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The Childhood Smoking Epidemic in Indonesia

In the 80’s I would always see an ad of a cowboy smoking a cigarette with the sunset behind him.  I learned that he was the Marlboro Man, a symbol of what a cool smoker would look like.  Marketing professionals would agree that an ad like the Marlboro Man is an iconic image that has helped sell millions of cigarettes.

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Occupying, Protesting, Investing: Slow Money

Could this be the beginning of a new kind of investing, something as powerful, in its own right, as protest? As powerful as conscientious objecting? Can we call it conscientious investing?

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The Electric Car Branding Trick Even Nissan’s LEAF is Missing

In the past ten years, environmentally friendly cars have become a fixture in advertising. First came the Prius. Then BMW claimed its electric batteries boost performance, great for boosting the entire BMW brand. Chevy Volt, an electric hybrid, hypes range, innovation and American values, trying to minimize its differences from traditional cars. Nissan LEAF touts its green credentials, scooping up the ultra-green market.

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Markets at Risk of a “Carbon Bubble”; Fossil Fuel Reserves, Companies Way Overvalued

A “carbon” bubble exists and massive misallocation of capital is taking place in world financial markets as fossil fuel reserves and the shares of coal, oil and natural gas producers continue to be valued as if we can continue to burn as much fossil fuel as we want.

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10 Recommendations for Start-ups Looking to Raise Capital

The 2011 Pipeline Fund Fellowship Pitch Summit had eleven woman-owned, for-profit, socially responsible businesses presenting their business plans, hoping to raise money from a group of ten women learning to become angel investors.   During a break in the pitches, Nithya Das, an associate at the law firm Goodwin Procter presented the keynote.  She represents and [...]

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Social Entrepreneurs Lag Behind Impact Investors

By Matt Evans Aron Jakab runs Fruit of Care, a social enterprise selling high quality design home decor like fruit scented candles produced by people with disabilities employed in workshops across Hungary. Aron is a savvy entrepreneur now, but a few years ago, the talented designer had no knowledge and expertise in business management, finance [...]

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Filling the Gender Gap – Educating and Training Women as Angel Investors

The glass ceiling is alive and well, especially for start-up entrepreneurs. According to American Express Open 29% of all US businesses are owned by women and their numbers are growing by 1 and a half times the national average.  “There are over 8.1 million women-owned businesses in the United States, generating nearly $1.3 trillion in [...]

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Local Stock Exchanges Offer Hope to Small Businesses Looking to Raise Capital

The almighty dollar. Acquiring it is the most commonly cited challenge for entrepreneurs: how to raise sufficient capital to grow, expand, hire, or simply survive. The growing fields of impact investing and socially responsible investing also make it clear that the investment environment is ripe for locally-sourced capital infusions in mission-driven businesses….if only the dollars [...]

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Oil Company Shareholders Vote Against Fracking in Record Numbers

Opponents of fracking have taken their cause to energy companies’ shareholders, and the results are impressive. Recent shareholder resolution votes on fracking resulted in huge percentages of “yes” votes.

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ExxonMobil Shareholders Ask for Disclosure on Tar Sands Investments

Green Century Capital Management filed a shareholder resolution with ExxonMobil to disclose information about its investments in Canadian oil sands (commonly called tar sands). Canada’s tar sands are the second largest oil resource in the world, with over 173 billion barrels in reserve. By the end of last year, ExxonMobil’s “total proved reserves in the [...]

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McDonald’s Stands Its Ground: Advertising To Children is OK

Corporate Accountability International (CAI) presented a proposal at McDonald’s Corp shareholder meeting yesterday that asked for a report on the links between fast food and childhood obesity. CAI worked with the Sisters of St. Francis of Philadelphia on putting together the proposal. The proposal was defeated, as were proposals by The Humane Society of the U.S. and [...]

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Shareholders Pressure Coca-Cola to Scrutinize BPA

On April 27 over one-quarter of Coca-Cola shareholders voted for a resolution that requested the beverage giant to address consumers’ concerns over bisphenol A, or BPA.

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A Common Language for Impact Investing

The following open letter is a part of the Presidio Graduate School’s Capital Markets course. For one of the course assignments, students write a letter to an oversight body, government entity or other appropriate institution. The topic: changing the sector of capital markets that relates to their chosen topic so it reinforces principles of sustainability. [...]

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Evil Corporations: Shareholders Pull Strings for Sustainability

By Derrick Mains, Principal of Your3BL Advisors and Host of Your3BL Radio We all know that there is a rising tide of resistance against some large corporations. It could even be said that the word “evil” has become synonymous with big business. But have you ever wondered what makes these companies so evil? I mean, [...]

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Sustainability’s Influence on Stock Value

Political discourse over sustainability, in the USA, always seems to debate this single notion: that implementing sustainability initiatives – whether those are to increase the use of renewable energy, or to introduce any form of environmental regulation – are costs which put businesses at a competitive disadvantage resulting in job losses. The camps for and [...]

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Pension Funds Are Key to Growing Impact Investing

The following open letter is a part of the Presidio Graduate School’s Capital Markets course. For one of the course assignments, students write a letter to an oversight body, government entity or other appropriate institution. The topic: changing the sector of capital markets that relates to their chosen topic so it reinforces principles of sustainability. [...]

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Socially Responsible Investment Firm Divests Chesapeake Energy

Harrington Investments, Inc., an investment advisory firm specializing in socially responsible investing, announced today that it is divesting its entire holding in Chesapeake Energy Corporation (CHK) due to the corporation’s poor environmental record and its lack of accountability to shareholders.

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