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For many years, money that was used for good will was called charity and money used to make more money was called investing. Not anymore. Today, the two ideas are coming together in a financial avenue called socially responsible investing. And both investors and mutual fund operators are learning that this new idea can be profitable, and do some good for the environment and society at the same time. Bob Guthrie, an investment broker with A.G. Edwards in Burlington, Vt. says, "Socially responsible investing means you don't have to compromise your own personal beliefs to make money on Wall Street - whatever those beliefs are." The idea of selectively choosing stocks for social reasons dates back to the early 1900s, Guthrie said, when church members banded together and refused to invest in tobacco or alcohol companies. The trend continued with investors dodging corporations involved in the Vietnam War, he added, and most recently revolved around companies investing in South Africa. So, yes, growth in this type of investing has ballooned during the past few years as more and more investors have moved social consciousness into the main street of investing. And the impact of this trend is being felt. With help from stockholders, says Rob Kruger, vice president of portfolio management at Progressive Asset Management, business practices concerning the environment are beginning to change, While the issues may differ, he said companies are realizing they will suffer the consequences if they aren't viewed as being socially responsible. Kruger said, "As this investing community continues to grow, a lot of proposals are being addressed by investors at annual shareholder meetings. A whole spectrum of issues and activities is now being put forward." As part of its operation, Progressive Asset Management conducts research for socially responsible mutual funds. The firm screens companies for environmental problems or nuclear involvement -- whatever issues their clients want investigated. As the clock ticks, companies are becoming more cooperative if not anxious to talk about how they are more socially and environmentally responsible. Guthrie agrees that American corporations and business practices are aware of stockholders who are very concerned with social and environmental responsibility. He advises, "Make sure your hard-earned money is not invested in companies with little concern for the environment. Keep these things in mind when you invest and the corporations will do the same too."
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Earth News Media and its founders have written and published several books and news columns focused on environmental issues. Earth News Media features global warming articles, ozone depletion, recycling, climate change and more.
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