Socially Responsible Investing

Socially responsible investing is when you invest your money in companies with missions that align with your political, social, and environmental beliefs. Learn more about the impact of socially responsible investing, plus how to find the best funds and companies to invest in.

Frequently Asked Questions

  • What is socially responsible investing?

    Socially responsible investing (SRI) is the act of investing money in companies whose missions align with your own political, social, and environmental beliefs. SRI has been around for a long time, with roots in faith-based investing, as well as the civil rights and antiwar movements of the 1960s and 1970s.

  • What is shareholder activism in socially responsible investing?

    Shareholder activism is when an individual or organization uses their ownership in a company to influence change. In some cases, shareholder activism can be relatively passive and include a letter-writing campaign to the company. On the other end of the spectrum, shareholder activists may actively work to change the company’s strategy, leadership, and structure.

  • How can you get started in socially responsible investing?

    You can take part in socially responsible investing by researching companies whose missions and values align with your own beliefs. As long as the company is public and open to new investors, you can buy shares of its stock through a brokerage firm online or via an app. You may also buy shares of mutual funds or exchange-traded funds (ETFs) that group several mission-driven companies together. 

  • What is the difference between SRI and ESG investing?

    SRI stands for socially responsible investing while ESG stands for environmental, social, and governance. SRI is the act of investing only in companies with missions that align with your own beliefs. ESG investing is when you invest money in companies that focus on bettering the environment and thus society, while also considering how those factors impact financial performance.

Key Terms