Socially Responsible Investing (SRI)
I am in the process of finishing a very interesting book, The Triple Bottom Line, by Andy Savitz and the concept of SRI appears several times in the book. This concept is based on choosing investments based on the companies’ environmental and social record. According to Savitz, this concept in the US has originally started back during the time of the Vietnam War, as individuals decided to pull their investments from companies that were supplying products for the war.
Those that do investing, should seriously consider companies that focus all the three key elements of sustainability – economic, social and environmental success. One good place to start, is to take a look at the organizations that make up the Dow Jones Sustainability Index (DJSJ), which was created in 1999. One should also take a look at the companies that make up the World Business Council for Sustainable Development – According to Savitz again, these “companies have outperformed their respective national stock exchange by 15-25%.” Worth investigating..
Sal
February 21, 2007 @ 10:18 am
It has always been the focus of companies to drive profit, first and foremost. great to see that there is evident to the contrary. Is there more information on the types of companies that make up the DJSI?