Socially Responsible Investing (SRI)

Maximizing financial return and social good

SRI is any type of investment (particularly mainstream institutional investment) that takes into account environmental, social, and corporate governance issues in the investment process along with performance and return.

SRI involves looking for investments that will perform as best as possible without doing harm to the world. In their selection process, investors look at the principles and values that are embedded in the business operations of companies. For example, most socially responsible investors screen out tobacco and big oil company investments.

SRI and You

You can take a particular stance on certain environmental or ethical issues when considering who to invest in. Everyone has different concerns and prioritizes their investments accordingly. You can create your own criteria based on your values and mold your investments accordingly.

Benefits of SRI


Divesting is the act of removing stocks from a portfolio based on mainly ethical, non-financial objections to certain business activities of a corporation. It’s another way you can voice your opinion for how you believe a business should be responsible and ethical. Recently, CalSTRS (California State Teachers’ Retirement System) announced the removal of more than $237 million in tobacco holdings from its investment portfolio after 6 months of financial analysis and deliberations.