What is SRI?

A growing number of investors are choosing to invest in the future of their communities, their environment and their world. These investors are at the heart of socially responsible investing (SRI), one of the most positive emerging trends in the investing world. Socially responsible investing (sometimes referred to as ethical investing) is defined as the integration of peoples' societal, environmental and ethical values with their investment decisions. It is the act of making investment decisions to achieve not only financial returns, but also social and environmental returns producing a "triple bottom line". It includes all of the financial decision-making processes that are a part of a prudent investment management approach, but it also includes the selection and management of investments based on peoples' ethical, moral, social and/or environmental concerns.

Everyone's vision of an improved world is not the same. Some are concerned about the production of certain products, such as alcohol, tobacco or military weapons. Others are more concerned about the effect corporations have on the environment, while still others want to ensure the protection of basic human rights or progressive employee relations.

Many believe that there is more to SRI than the traditional approach of simply screening investments. In fact, they believe that there are 3 key components to being a truly active and committed socially responsible investor.