Socially Responsible Investments (SRI) can be defined as an investment strategy that puts profits on an equal footing with wider social issues. It is closely associated with the terms ethical investment and socially-conscious investments.
SRI is not a new trend or a new term as it has its routes in religious groups or faith based investing over many centuries. It therefore is difficult to pin down as these terms are relative to ones own beliefs, morals or ethics. It is widely accepted that personal views alter it meaning and hence the judge of what is SRI may have to be the results of the activity being invested in. As they say hindsight is a wonderful thing.
Therefore, in future it may be more appropriate to specify exactly what is the social aim in investing. For instance it may be reduction in Global Warming. Alternatively it could be investing in companies who have the social welfare of their employees at the center of policy. Sustainable sources of energy, commodities or water could be the goal. Recycling or waste disposal or energy conservation are all areas where the socially responsible investor may choose to make their investments.
Allied to the positive choices the socially responsible investor may use negative selection criteria such as avoiding companies who are involved in alchohol, gambling, tobacco products or military equipment and services.
The key factor is you the investor sets the limits and then chooses the stock, funds or bonds that fit your requirements.