Socially responsible investing (SRI) is also sometimes called sustainable investing or ethical investing. SRI recognizes that there are things for investors to consider in their investment decisions besides profits. Socially responsible investors, therefore, take into account the actions and backgrounds of the companies and opportunities in which they invest and look at how these investments potentially affect things such as other individuals, communities or the environment. For example, a socially responsible investor would probably not invest in a tobacco company because of the harmful effects of cigarettes.
According to SocialFunds.com, "The three main strategies of socially responsible investing include social screening, community investing, and shareholder activism."
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In the past few years, socially responsible investing has grown by leaps and bounds; according to socialinvest.org, $2.71 trillion out of the total $25.1 trillion U.S. investment marketplace is now invested in socially responsible investments. Investors who are looking to invest in a socially responsible manner have a wide variety of options in today’s marketplace, including numerous mutual funds and ETFs. In addition, socially responsible investors can always do their own due diligence in selecting appropriate investments and can expand into non-traditional investments.