kelvin--summary of the article

The summary of the article “ Socially Responsible Investing for Long Term” by Christopher Nolty, Senior Investment Consultant

Nowadays, many capitalists think that company integrity is crucial. Moreover, the company will have less risk (55%) and higher returns (52%) (Yankelovich study, Jan 06)if it is good at social responsibility. At the same time, company with good social image may attract more investor.
Based on this reason, SRI, socially responsible investing, is a way to help the capitalist to choose the company, which has good management and does responsible for the all the stakeholders.
Around 100 years old ago, SRI was related to religious that not encourage the business involved in gambling and alcohol and so on. Now, SRI puts more criteria onto the financial analysis such as the right of the worker and safety product. In fact, SRI focuses on social and environment instead of the account and value of the tangible assets. By adding the new element on the analysis, investors can find the company has low risk and good management system thus having a good future of financial performance. Moreover, investor plays an active role on affecting the decision of the company. Calvert, the biggest family of Sri funds, is a good example that requests the company to do specific actions including developing new environment policy.
Finally, providing housing and community development are the ways to build up the goodwill of the company. Therefore, more and more Americans try to balance the financial objective and the social obligation in order to have a better future.

Reference:
1. Attitudes Toward Socially Responsible Investing,Ó Yankelovich Study, January 2006.
2.Ibid.
3. 2005 Report on Socially Responsible Investing Trends in the US. The Social Investment Forum, 2005, p. iv.

article:
http://www.principledprofit.com/socially-responsible-investing.shtml