Socially responsible investment is the latest buzz in the industry. You might wonder as to what does it signifies and what is its importance? Why are all people talking about socially responsible investment these days? If you seek answers to such questions, then you have come to the right place to find the answer.
An investment is considered socially responsible when the whole business of it is to benefit the society at large. It includes not investing your money in companies involved in commodities or products that may harm the society in any way. Such products include tobacco, alcohol or other such stipulated drugs, etc.
A responsible investment usually involves seeking out investments in the field of clean energy, renewable energy, social justice, social responsibility and all other such fields, which directly or indirectly benefit the society. There are specially designed socially responsible mutual funds that help people to make a social responsible investment.
How do these Investments Influence Businesses to be socially responsible?
This is done in 3 ways exactly. Let us look at these types, individually:
- Investment
Every business seeks investments. It needs money to grow and expand into various domains. When companies engage in socially responsible behavior, they can seek socially responsible bail bonds, which can be bought by interested individuals. Investments are made in such companies where the customer feels that they hold their values and principle to the best of their beliefs. They engage in social justice, social consumer protection, religious beliefs, free education, etc.
- Shareholders say
When people, who invested in these companies, become shareholders, they can advocate their say in the business. This would certainly impact their long-term business strategies and would garner good results. It serves a dual purpose of becoming a socially responsible citizen and ensuring growth and sustainability for the business. There are various means through which these goals can be achieved. Dialogues, voting, etc. are some of these ways. You can be a part of socially responsible investment companies too.
- Community investing
According to experts, this has become the fastest way to invest in social investments today. With such investments, you ensure that a large part of your society that has not been able to join the mainstream gets at least the basic human needs. The money is directed to those countries or part of a country where people are under served and need the most urgent human care. They also seek to give out very low interest loans from such investments to people in need.
Generally, you can make your social responsible investments in individual companies or the specially designed exchange traded funds. Today people across the world have a shared consciousness of providing sustainable solutions, so that your children get to live and reap the benefits of the nature and society at large. Social investments are specially designed to cater the needs of people, so that people grow in a world where business environment supplements the sustainable growth.
If you also plan to be a part of such a wonderful aspect, where you not only earn returns, but also fuel the underprivileged class of the world to move ahead, then greenhorizoncapital can help you make your dream come true.
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