Green Yield

It’s been called Clean Yield, Green Money, Good Money, etc., but mostly it goes by Socially Responsible Investing (SRI). What’s SRI? Simply put: its either investing in something that you feel will make the world a better place, avoiding companies that are making the world worse, or both. There is one other strategy: Shareholder Advocacy: Investing in typical corporations and supporting resolutions at shareholder meetings that will make for a more wholesome company. For example, the Domini Mutual Fund group will work together with various non-profits to raise vital issues and sometimes even get a company to change its policy.

And how did SRI begin?
In 1967 a woman wrote asking: "Is there a mutual fund which will manage my pension money without investing in war-related industries?" By 1971 the Pax Fund was formed “1) to make it possible for people to invest in keeping with their values and 2) to challenge corporations to establish and live up to specific standards of social and environmental responsibility. They thought they could best influence corporations from the inside, as potential shareholders who might invest in a company if it met these standards.”

There are over 200 SRI mutual funds now, as well as various SRI investment advisors throughout the country.
Besides stocks, bonds, and mutual funds, one can invest in one’s own SRI business, a local SRI business, or a SRI credit unions or loan fund. What’s more rewarding investing in your own sustainable business? Or a small local business ready to expand? Here in Lancaster Co. PA, I may soon have two opportunities: Greenline Paper residing in nearby York Co. and Mission Research in Lancaster City.

I expect a thriving discussion of this whole SRI concept, but the teacher in me will also be presenting the basics as we muddle through and peak our oil.

How does Socially Responsible Investing compare with typical investing? Good News & Bad News.

Good News: Your investments are generally much safer. If a company offers decent products or services, does not damage the environment, is good to its employees, well-respected by customers, suppliers, and the local communities, its very likely it will have too many serious problems. If another company buys it up, its more likely to gain value than lose it.

Bad News - Well, not that bad- You have a much smaller number of investment options (depending on how “pure” you want to be) AND fewer of these wholesome companies are as likely to take the risks or cheat-the-system to rise rapidly in price.

The “money is business” crowd is beginning to respect the SRI industry, but many still look askance. About fifteen years ago when the idea of putting values with your money began to establish itself, one of the Forbes family dismissed SRI as something akin to child’s play.

Lets get to it. What makes a corporation socially responsible?
Here’s a list of positive screens I composed/collected years ago which can serve as a starting point.

Good Labor Relations
Layoff policy
Mass Transit
Living Wages
Affordable Housing
Employment Practices
Worker Health & Safety
Employee & Family Benefits
Education & Training Programs
Management & Employee Diversity
Health Care/Child Care/Elder Care
Smoke-free Workplaces & Restaurants
Employee Stock Purchasing Plan/Profit Sharing
Effective Equal Opportunity for Women & Minorities

Good Customer Relations
Warranties
Human Rights Record
Product Safety & Quality
Research & Development
Code of Conduct for Suppliers
Corporate Openness & Citizenship
Community Development & Involvement

Good Community Relations
Charitable Giving
Park Development
Open Space Acquisition
Financing for Small Business
Financing Libraries/Hospitals/Schools
Positive Response to Shareholder Resolutions

Good Environmental Record
Conservation
Recycling Programs
Renewable Energy Resources
The NATURAL STEP trainings
Pollution Prevention Measures
Products Designed for Recyclability
Natural & Sustainable Farming & Food Production
CERES Principles Signatory (Environmental Standards)

Next: Negative Social Screens