Trying on Styles of Social Investing - dummies

Trying on Styles of Social Investing

Part of Socially Responsible Investing For Dummies Cheat Sheet

When you decide to make a social investment, you are showing that you care about the world around you. So, where should you put your focus? Here, in alphabetical order, is a list of the main social investing styles. Which one suits you?

  • Community development: Concerned about the economy where you live? Want to make your city and state a better place? You can invest in stocks, bonds, and other assets that can help make that happen.

  • Corporate governance: Not all companies are run by managers who are committed to responsible, ethical behavior. Investors following this style seek out well-run companies and press the less-than-the-best to change.

  • Environmental issues: Are your concerns centered on the use of natural resources, carbon emissions, and sustainability of the world around us? Many companies share your concern and make good investments.

  • International affairs: Maybe you don’t want to support corrupt governments or finance wars. That’s fair. And your money doesn’t have to do that, either.

  • Religious beliefs: Your faith may guide many aspects of your life, and maybe you’d like to include it in your financial planning. Some religions forbid certain types of investments, but that doesn’t mean you can’t save.

  • Social change: Want to invest in companies that make good products, treat workers well, and contribute to the betterment of society while avoiding those that don’t have great reputations? This is the style for you.