Socially Responsible Investing: Investing in a Better World
Investing in the stock market is a popular way to build wealth, but more and more investors are looking for ways to invest their money in companies that align with their values. Socially responsible investing (SRI) offers a way for investors to do just that.
SRI is defined as investing in companies that have positive social and environmental practices while avoiding those companies that engage in negative practices. Companies that embrace SRI typically show a strong commitment to making the world a better place, whether through sustainable business practices, community involvement, or philanthropy.
Investing in companies that care about more than just profits is important because it helps encourage positive change. When vested in the success of companies that prioritize social and environmental causes, investors are able to make a statement about the type of world they want to live in.
According to Babson College’s Project ROI report, companies that prioritize SRI tend to outperform those that do not. The report found that companies with strong social responsibility performance outperformed their peers in the stock market.
This suggests that investing in socially responsible companies not only makes investors feel good about their money, it also makes good financial sense. Here are the top 15 socially responsible companies to invest in:
1.
Amazon
Amazon Smile is a program that donates a portion of eligible purchases to the charity of the shopper’s choice. Amazon also has environmentally conscious practices, such as using renewable energy to power its data centers and donating its excess food to the needy.
2. Facebook
Facebook has stated that it aims to transition to 100% renewable energy by the end of 2020.
The company is also actively involved in supporting renewable energy resources through its infrastructure and partnerships. 3.
Tesla
Tesla is a pioneer in environmental sustainability through its core product offering of zero emissions electric cars. The company also uses its resources to support renewable energy and sustainable practices.
4. Whole Foods
Whole Foods is committed to providing natural, organic, and sustainable food options.
The Whole Planet Foundation is dedicated to alleviating poverty globally through microcredit loans to help empower entrepreneurs in underdeveloped communities. 5.
Alphabet
Alphabet is a world-renowned company with a strong social responsibility program. The company has recognition for its corporate responsibility and provides philanthropic support through its Google.org arm.
6. Target
Target promotes small businesses and brands that give back.
The company has a legacy of giving and service through its Target Foundation, corporate grants, and volunteer programs. 7.
The North Face
The North Face focuses on ethical, environmental, and social standards throughout its supply chain. The company uses specialized fabrics that save water and energy, and also supports environmental organizations.
8. Southwest Airlines
Southwest Airlines has committed to charitable giving, volunteerism, and environmentally sustainable practices.
The company’s Medical Transportation Grant Program provides free flights to nonprofit organizations in support of transportation needs. 9.
Nordstrom
Nordstrom supports employee volunteer opportunities, charitable donations, and worker empowerment. The company strives to reduce its carbon footprint and waste with initiatives like its Garment Recycling Program.
10. Lululemon
Lululemon supports health and wellness through its products, stores, and community events.
The company fosters a conflict-free supply chain and is committed to local businesses that support social responsibility principles. 11.
Kroger
Kroger has an impressive corporate responsibility program that focuses on responsible supply chain practices and environmental sustainability. The company also participates in charitable giving and volunteerism.
12. Nike
Nike is committed to minimizing its environmental footprint and boosting sustainable labor practices.
The company provides opportunities for volunteerism and giving back on a local level through its Nike Community Impact Fund. 13.
Starbucks
Starbucks sources its coffee ethically and sustainably, aiming to create a positive impact on the world. The company has made commitments to sourcing from farmers that uphold ethical standards and building a network of farmer support centers.
14. Procter & Gamble
Procter & Gamble has committed to social responsibility at the core of its company for over 175 years.
The company has made a commitment to reducing its carbon footprint and engages in no animal testing except when required by law. 15.
Johnson & Johnson
Johnson & Johnson has a goal for 2020 to achieve citizenship and sustainability in its global health challenges as well as create a culture of health and well-being. The company is committed to cutting waste and energy use at its facilities.
Investing with a Conscience
Socially responsible investing is a way for investors to align their investments with their values. Not only does it offer investors a way to make a statement about the type of world they want to live in, but it also makes financial sense.
By investing in companies that prioritize social and environmental causes, investors are able to promote positive change while potentially receiving strong financial returns. As individuals, investors are able to influence the companies in which they invest.
By supporting socially responsible companies, investors are able to encourage corporations to be more ethically and socially conscious, creating a positive impact on society as a whole. In this way, socially responsible investing is able to make a difference in both the financial world and the world at large.
In summary, socially responsible investing is a way for investors to invest in companies that align with their values. It is defined as investing in companies that have positive social and environmental practices, while avoiding those that engage in negative practices.
The importance of socially responsible investing lies in its ability to encourage positive change while potentially receiving strong financial returns. The article lists the top 15 socially responsible companies to invest in, including Amazon, Facebook, Tesla, Whole Foods, and more.
These companies prioritize social and environmental causes and have strong commitments to making the world a better place. By investing in these companies, individuals are able to support positive change and promote ethical and socially conscious corporations.