Socially Responsible Investing

Some say that the history of Socially Responsible Investing, or SRI, goesback to Quakers (Religious Society of Friends in the US). In 1758, the Quaker Philadelphia Yearly Meeting prohibited members from participating in the slave trade of buying or selling humans.

One of the most articulate early adopters of SRI was John Wesley (1703- 1791), one of the founders of Methodism. Wesley's sermon "The Use of Money" outlined his basic tenets of social investing - i.e. not to harm your neighbour through your business practices and to avoid industries like tanning and chemical production, which can harm the health of workers.

The present view on SRI kicked off during the Vietnam War, with a picture of a girl running towards the photographer with her back burning from the napalm that was dropped on her village. This led to wide demonstrations against companies profiting from the Vietnam War, and people started to become more aware of how companies invested and were making money.

As an example, pension funds are becoming increasingly more aware of the target of their investments, after the exposures of several pension funds that were investing in the arms trade.

Another trend is found in people that are investing their money in win-win- win projects such as environmentally friendly bonds, stocks in windmills, CO2 quotas or micro-financing.

Domini - Social Investments

“The way you invest matters. Be part of the solution”

It is stated on the website of Domini Funds, that as a shareholder, “you make a difference in the world, engaging companies on global warming, sweatshop labour, and product safety, revitalizing distressed communities, bringing new voices to the table and helping redefining corporate America's bottom line”.

They outline their investment strategy as determined by stakeholders such as communities, customers, ecosystems, employees, investors, and suppliers.

Domini Social Investments won the “Social Capitalist” Award from Fastcompany Magazine and Monitor Group in 2008.