Socially Responsible Investing (SRI) has skyrocketed over the past ten years. 10% of all investments, approximately $229 trillion, qualify as SRI. There are currently 221 SRI mutual funds available for individual investors. So what, more specifically, is SRI -- other than an attempt to combine money and morals, not always an easy mix? All SRI options agree upon three broad requirements.
1. There must be some sort of screening process that examines a company's business practices to see if it meets with the social agenda of investors. Social research is just as important as fundamental financial research in SRI. One of the more common screens is to examine companies in terms of their environmental records, as well as their human rights records. Companies marketing themselves as SRI companies generally have a positive gender equity policy, and are heavily involved in social welfare programs in the communities in which they operate. There are no agreed-upon criteria for SRI other than those imposed by potential investors.
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