We’ve mentioned social impact investing for some time in a variety of blogs and on our website, but I thought it would be beneficial to take time to explain the concept in greater detail.

A socially responsible investment (also called a socially conscious investment) is a classification based on the nature of the type of business a company conducts.

KEY CHARACTERISTICS FOR SOCIALLY RESPONSIBLE INVESTING:

• The practice of investing money in companies and funds that have positive social impacts.

• Positive social impacts can be on people and communities due to an action or inaction, an activity, project, program, or policy. 

• Positive social impact can also come from projects that improve the environment and sustainability.

Social responsibility means that businesses, in addition to maximizing shareholder value, must act in a manner that benefits society. Social responsibility has become increasingly important to investors and consumers who seek profitable investments that contribute to the welfare of society and the environment. However, critics argue that the fundamental nature of the business does not consider society as a stakeholder but more as a beneficiary.

Investments in welfare, such as healthcare, education, and housing, directly improve the quality of life for individuals and communities. Access to quality healthcare can increase life expectancy and reduce disease, while investments in education can lead to better employment opportunities and economic growth.

Social impact investing represents a powerful tool for positive change, offering a unique blend of financial returns and social good. As this investment approach continues to evolve, it has the potential to reshape the landscape of the investment world, leading to a more sustainable and equitable future for all.

The power of investing in other people's welfare lies not just in the financial capital it provides but in the human and societal transformation it fosters. It's a testament to the idea that economic and social goals can be aligned, creating a more just, equitable, and thriving world for everyone. As more individuals and institutions recognize and act on this power, the potential for positive change is immense.

If you have questions about any of this or would like to learn more about taking advantage of the possible financial opportunities that lie ahead, please reach out to us or schedule a call.

Investing for Impact,

Randy Hubbs