Today, the two ideas are coming together in a financial avenue called socially responsible investing. And both investors and mutual fund operators are learning that this new idea can be profitable, and do some good for the environment and society at the same time.

“Socially responsible investing means you don’t have to compromise your own personal beliefs to make money on Wall Street… whatever those beliefs are,” states Bob Guthrie, who is an investment broker with A.G. Edwards in Burlington, Vt.

Even back in the early 1900′s the idea of choosing investments for social reasons occurred when church members formed together and refused to invest in tobacco or alcohol companies. Guthrie also says that the trend has continued with investors dodging corporations associated with the Vietnam War or companies investing in South Africa. And that trend continues today with investors selecting companies that are more environmentally friendly over those that are not.

So, yes, growth in this type of investing has ballooned during the past few years as more and more investors have moved social consciousness into the main street of investing. And the impact of this trend is being felt.

With help from stockholders, business practices concerning the environment are starting to change, said Rob Kruger, vice president of portfolio management at Progressive Asset Management. While the issues may vary, he said companies are realizing they will suffer if they aren’t viewed as being socially responsible.

“As this investing community continues to grow, a lot of proposals are being put forward by investors at annual shareholder meetings,” Kruger said. “A whole variety of issues and activities is now being addressed.”

As part of its operation, Progressive Asset Management conducts research for socially responsible and eco-friendly mutual funds. The firm screens companies for environmental problems or nuclear involvement… whatever social issues their clients want investigated.

“As time flies, companies are becoming more and more cooperative with us,” Kruger said. “Many of them are now very eager to talk about these social and environmental issues.”

Guthrie agrees that business practices are changing and says American companies are aware of shareholders who are concerned with the environment.

“Make sure your hard-earned capital is not invested in companies with little concern for the environment,” he advises. “Keep these things in mind when you invest and corporations will, too.

Earth News Media is proud to promote emission reduction credits as well as help sustainable communities with their recycling programs, eco-tourism, water conservation and other environmental issues. This article, Socially Responsible Investing In The Environment has free reprint rights.

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