Socially responsible investing is becoming more popular, especially among younger investors.
There are investors who look beyond the bottom line.
There is a trend in investing today that is growing. Some investors want to know the companies they invest in have a policy of doing the right thing from the standpoint of social responsibility.
Interestingly, there is also a contingent of investors who believe such socially responsible self-reporting is nothing more than public relations to please that faction of investors that care about others.
Investors are not going to put their investable funds into companies that are going to lose them money. But when they look to invest in a successful firm, some investors want to know the company has an eye on the future of the planet as well as the future of the company.
Spectrem’s Perspective, “Investor Perceptions of Socially Responsible and Impact Investing”, explains just how prevalent socially responsible investing is among wealthy investors.
Thirty percent of high net worth investors consider a company’s attitude toward social responsibility when they consider their investment options. That percentage climbs in reverse proportion to wealth, as those with more wealth give less thought to socially responsible investments. There is a similar trend in terms of age, as older investors think less about what function their investments perform outside of making them more money.
Of those investors with an eye toward socially responsible investing, 62 percent say they want to create a better world for their children and grandchildren. Fifty-seven percent are aiming to help the environment, 48 percent want to invest in order to help those less fortunate, and 46 percent believe the success of companies with social responsibility programs and aims will cause other companies to follow suit.
Of the affluent investors completely uninterested in socially responsible investing, 57 percent say their investment priorities are entirely financial. Almost one-third believe companies touting their social responsibility are doing so merely as a public relations stunt and 20 percent believe corporations should concentrate on generating a profit and let individuals use their investment profits to donate to socially responsible efforts.
Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.
In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.
McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.
McDill is the father of four children, and an active fan of soccer, Jimmy Buffett and all things Disney.