Comments on: Socially Responsible Investing (SRI) Is A Scam

By: Budgetary » Investing Articles

Budgetary » Investing Articles — Sun, 25 Jan 2009 22:20:17 +0000

[...] Socially Responsible Investing (SRI) Is A Scam at Amateur Asset Allocator [...]

By: Four Pillars Investing

Four Pillars Investing — Fri, 23 Jan 2009 10:01:38 +0000

[...] Asset Allocator says that socially responsible investing is a myth. I couldn’t agree [...]

By: Meghan

Meghan — Wed, 21 Jan 2009 17:11:10 +0000

The idea behind SRI is that investors help move companies toward more ethical practices. Boycotting companies has proved to be an ineffective strategy for promoting change. However, you are right in that the issue of diamond and metal mining is very complex with no easy solution. In this case, consumer behavior rather than investing may be the first step. Consumers should only support sustainable jewelry companies that offer recycled or green metal and ethically sourced or lab-grown gems. At this point, that excludes any of the major companies dominating the industry. C5 is one company that does offer alternatives. Learn more at http://www.C5company.com.

Wear Your Commitment.

By: Andy

Andy — Tue, 20 Jan 2009 21:58:38 +0000

I agree with both Pinyo and ObliviousInvestor, but why not but both strategies to work… If the best investment were a company I didn’t want to support, I would invest in Second Best Company, while creating a buzz against Wrong Company’s products. Then give the proceeds to charity. I might even short Wrong Company during my buzzmaking… although I don’t know if there are rules against that.

By: Pinyo

Pinyo — Tue, 20 Jan 2009 19:58:43 +0000

Thank you for mentioning my article. This is what I believe. You are better off investing unrestricted to get the best result, and then donate to charities that support social responsibility. You and the charities get more, instead of wasting it on higher expenses SRI funds normally charge.

By: ObliviousInvestor

ObliviousInvestor — Tue, 20 Jan 2009 18:38:35 +0000

One additional point of note: Companies don’t necessarily benefit when you buy their stock.

Assuming you weren’t one of the people who invested at their IPO, you’re not actually providing them funding. You’re simply buying it from somebody else in a 3rd party market. The company itself isn’t even involved in the transaction.

If you’re really against a company, a much more worthwhile endeavor is to decline from buying their products, and make efforts to get others to make the same decision.