Socially Responsible Investments are investment funds that invest in ethical companies. For example, a fund manager may choose not to invest in companies that sell tobacco or harm the environment.
I believe the main problem with most SRI funds is that it is difficult to know what is ethical and what is not. That is why I suggest the creation of a democratic ethical fund.
Those who invest in this fund have the right to vote for the company the fund invests in. What is ethical then is defined by those who put money into the fund. This means that firms, if they want to receive capital, will need to appeal to the people.
1 comment:
What is ethical and what is not -- is up to the individual to decide. However, I believe that if we all invest according to our personal ethics, then we will all end-up better-off. It's good at least to see your support for the concept of socially responsible investing.
Incidentally, readers might like to know that they can get the latest socially responsible investing news at http://investingforthesoul.com/
They can also sign-up for a free e-newsletter.
Best wishes, Ron Robins
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