Socially responsible investing, also known as a socially conscious or investing in commodities, describes to maximize both financial return and social good. It is a financial investment that screens the companies to be invested in for their social outlook and business morality. This investment is screened to ensure it has no links to activities, which the investor would not wish to support. These investment made in companies which are deemed to be responsible corporate citizens ethical investments trend to exclude companies involved in tobacco, gambling, arms and some mining operations.
For those who try to look at investment with a conscience/ethical investments is possible via a number of collective funds or individual stocks back in the eighteenth and nineteenth centuries, religious organizations were the first to use morals to help make investment decision. In those days, the aim was simply to avoid involvement with companies whose product were not approved of alcohol and gambling for example it took a long time for ethical investments to reach the average investor. For example, the first of such funds in the United Kingdom were introduction in 1984 since that time, the use of moral campass to guide investment decision has involved including ever more complicated strategies and wider ranges of companies.
The ideas of socially and environmentally responsible investment have also been developed. This means that some investments are favored for being acceptable, whilst other are excluded for being less agreeable. The idea of active engagement within companies has also been developed.
The advanced levels of analysis in this area means that most investors with a heart are better using a collective investment fund which specializes in the subject or simply following their lead. It is almost certainly enough for most investors to four on picking profitable companies for investment, without needing to then filter for environmental policy or charitable works.
Most ethical funds will employ some forms of advisory board to help formulate their ethical funds will employ some form of advisory board to help formulate their ethical policies. By doing this the fund managers removes much responsibility from themselves for their policies and therefore are only responsible for actual investment returns.