Socially Responsible Investing - A Growing Trend

There was a time when investors had only two main concerns about their investments: to make money and avoid undue risk. As we become more concerned about issues like the environment, human rights and other social causes, social responsibility, where investments are concerned, has become a growing trend. Already huge in the U.S., socially responsible investing has caught on rapidly in Canada.

What is socially responsible investing? 
Socially responsible investing (SRI) is the process of using screens for ethical, social, moral or environmental concerns in selecting and managing investments. According to the Social Investment Organization, a national non-profit organization dedicated to the advancement of socially responsible investing in Canada, there are three basic approaches to SRI:

  1. The application of social and environmental guidelines or "screens" to the investment process.
  2. The investment of money into community development or micro-enterprise initiatives that contribute to the growth and well-being of particular communities.
  3. Using shareholder influence to help bring about positive social and/or environmental change at corporations.

If social issues such as charitable contributions, community involvement, air and water pollution, human rights and labour issues are of significant concern to you, then you may want to consider socially responsible investments.

If you are interested in learning more about your SRI options, please contact your Investment Advisor or use our Find An AdvisorOpens a new window in your browser. tool to locate a CIBC Wood Gundy Investment Advisor near you.