Green Yield

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