Many people have elevated their investment thinking to a level of the socially conscious. Social responsibility in a company has come more to the forefront as each of us takes a serious look at what we are actually doing with our money. Investing in a corporation that takes pride in where they get their products, how they hire and treat staff and has a high level of concern for the environment and their carbon footprint is now a key concern.
Billions of dollars are involved in the no-load mutual fund arena, but not all companies are alike. As we move into a more elevated and global society, investors are not just looking at the bottom line, but how a company achieved their margins. No one wants to be associated with investment in a company that turns out to outsource their labor in a foreign country sweatshop. The media has uncovered a number of well known celebrities that were supposedly unknowingly doing just that. Children were employed in factory environments and dangerous conditions, just to give us some of the luxuries and clothes that we wear.
Ensuring that your no-load investment is based on a socially conscious and responsible company is going to require that you do research. Gaining the assistance of a investment counselor that does not receive dollars for recommending particular investments is the first step. They usually have resources that can cut-to-the-chase for the topic at hand. A good hard look at a company’s prospectus is just the tip of the ice burg when investing in no-load mutual funds.
A company that touts social responsibility should be willing to undergo the scrutiny needed to verify that claim. This will mean that any additional companies or corporations that they are associated with (or spin-off companies) must also have a clean slate. Socially conscious efforts cover a gamut of topics. In today’s world the highest priorities are the people, the products and the earth.
Investigation into the treatment of staff, the conductivity of the corporate managers and the board of directors is a priority. You will have to do research to ensure that the staff is employed in a safe working environment and earning equitable wages to help them achieve a better quality of life. Corporate managers as well as the board of directors should also be scrutinized to make sure that the director and treatment of the company has a longer term social responsibility and not just being used to get investors. Taking advantage of the popularity of the term ‘socially consciouses should not hide any hidden agendas.
The products that are produced by a socially conscious company should involve all aspects of a non-polluting and non-toxic situation. Earth friendly is a term that is bantered around and ‘green-slamming’ is popular to attract buyers. A company should be investing into a smaller carbon footprint, ecological efforts as well as sustainable products.
There are some websites on the net that can assist in your research. Look for any that are non-profit based, as they will be able to give you information that is closer to the truth and not slanted in any particular direction. Investing in no-load mutual funds as part of your portfolio is a good idea, but to do it the correct and responsible way, you will need to make sure the investments are in the right companies.
Source:
http://finance.wharton.upenn.edu/~rlwctr/papers/0402.pdf
