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Social Responsible Investing

If you take the decision of your investment on basis of of factors of social responsibility, it is called that social responsible investing. I can explain it with simple example. Suppose, you have invested $ 10 million shares of a company who deals in engineering. Recently, this company buys alcohol vending company. After listening this news, you have decided to sell your all shares of a company immediately at 20% loss. This shows that your investment decision most elastic from socially responsible. You may think that you are good citizen. This production will decrease the health standard of society and will increase evils. So, you have decided to sell the shares of that company. Like this, I hate the following business due to my social responsibility.



1. Slaughterhouse and Meat Vendor Companies 


Every person should not invest in these companies because these companies main aim is to earn profit by killing animals. These animals are very needed for our environment balance. You know, if there is something wrong, our balance sheet never will be balanced. Environment is also balance sheet. If we kill animals, it will surely affect our environment. For example, in Africa, there is no elephant. In India, these slaughterhouse and meat vendor companies are killing pig, cows, buffalo, goat and others. All these animals are useful resource for nature balance.  We will become happy, if these animals become happy. All earthquakes and tsunami are coming due to killing of these animals. So, you can make difference today by checking the company before investment. You can start from small investment. Suppose, you are small google AdWords advertisers. Never show your ads on any publisher who sells meat. With this, you will become social responsible investor because your small investment in ads will not promote other to sell meat and kill animals. Just go to your AdWords account and check what publisher is doing what. 


2. Gambling 


I hate also gambling. Gambling begins from greed. There are lots of company which are operating gambling business in the form of lottery houses,  casino and online gambling. All are cheaters. So, before investment, we have to check whether company has link with this business or not. With gambling, a person loses its all money. Even after losing all money, a person plays again and then starts to do bad activities for this. In end, he becomes killer. He kills other for playing gambling game. So, as good social responsible citizen of any country, you should not invest your hard earned money in this type of business.


3. Drugs Business 


Drugs are very harmful for health. It is also very harmful for society. Investor should not support drugs business by buying its shares or bonds. If these business will not get money from share market or loan market, these business never will grow and society will become more peaceful and happy. 


Social Good Investing Strategy for Social Responsibility 


In this modern age, many big organisation has started social good investing strategy for social responsibility. They take help of experts before investing their money on following points.

1. # Whether  their investment will be positive social impact or not

Ans. If not this type of investment will be in no investment and restricted investment category.

If yes, this type of investment will be in positive investment category.

There is all database who is kept by experts. For example, Social Investment Forum maintains the data of mutual funds on the the basis of social responsibility.



2. # Divesting Decision

If investor sees that the company is doing unethical works, investor will starts to sell its all stock. For this, you have to start keep eye on company.

3. # Company's policy

Company make the list of prohibited act on the basis of social responsibility. Company will never invest in that type of projects.

Related : Mutual Fund

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Accounting Education: Social Responsible Investing
Social Responsible Investing
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Accounting Education
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