Socially Responsible Investing: It's Not Just About the Money, It's About Making a Difference

October 21, 2023

Socially Responsible Investing: It's Not Just About the Money, It's About Making a Difference


Imagine a form of investing where planting a tree for each dollar you invest isn't so far-fetched. Your intent is for your money to grow and for that growth to contribute positively to the world around you. Socially Responsible Investing (SRI) offers a way to aim for financial returns while also considering the impact you're making. Think of it as preparing a meal that's not just delicious but also nutritious; you're trying to satisfy more than just your immediate needs.

What Does Socially Responsible Mean?

In layman’s terms, socially responsible investing means putting your money into companies or funds that, aside from seeking financial returns, also aim to do some good in the world. Whether it’s championing social issues, advocating for better corporate governance, or reducing environmental footprint, SRI is like choosing to shop at a local farmer's market over a big chain grocery store. You're making a statement with your dollars.

Is It All Rainbows and Butterflies?

Not exactly. The objective of Socially Responsible Investing is both financial returns and positive societal impact. However, don't assume you're insulated from market volatility. Think of it like choosing organic produce—it's generally better but not a guarantee. As for due diligence, this goes beyond merely examining ESG (Environmental, Social, Governance) ratings and sustainability reports. While those are important, it's worth noting that even these ratings could be subject to influence or interpretation. Let's just say that the lobbying industry has been known to be 'creative.' So be skeptical and diligent. Attend shareholder meetings, ask pointed questions, and remember—when it comes to investing, it's always 'trust but verify.

Navigating the SRI Landscape

  1. Look Before You Leap: Would you buy a car without checking its mileage or safety ratings? Likewise, delve into the social responsibility credentials of the funds or companies you are considering.
  2. Consult an Advisor: Just as a dietitian can tailor a nutrition plan for you, a fiduciary financial advisor familiar with SRI can guide you to make informed choices that align with your values.
  3. Stay Educated: Markets change, and so do social issues. Keep up-to-date with the latest trends and shifts in SRI, just like you'd keep an eye on new healthy recipes to try.

The Double Bottom Line

The ultimate aim of SRI is a double bottom line: earning financial returns while also making a positive impact. It’s like building a sturdy boat that not only sails smoothly but also leaves cleaner water in its wake.


Socially Responsible Investing lets you be more than just an investor; it allows you to be a part of something bigger. Remember, consulting a fiduciary financial advisor who understands SRI can help you align your investment choices with your values, ensuring you make a meaningful difference with your money.

Further Reading

Interested in more insights on wealth management and investment strategies? Visit our blog at McKee Financial Resources for valuable articles that help you navigate the complex world of finance.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

Article written by: Anthony Owens

Copyright © 2023 Anthony Owens @ Thriving Wealth Hub.

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