While boomers were among the first to embrace socially responsible investing, a new study from Fidelity Charitable, an independent public charity affiliated with Fidelity Investments, found that more than 70 percent of millennials and Gen-Xers have made an "impact investment" compared to 30 percent of boomers and older investors.
With impact or socially responsible investing, investors choose companies with practices that align with their values, reports Newsday. For example, they may select “green” companies, or decide not to invest in companies that are in businesses like tobacco, alcohol, or guns. A corporation’s environmental, social and corporate governance (ESG) practices come into play.
Offering investors some advice, California Western School of Law's Professor Catherine Hardee told Newsday, “Socially conscious investors should spend their time investigating the effort the fund puts into holding boards responsible for meeting their social commitments rather than trying to research the companies themselves. ... There is currently no foolproof way of ensuring that a corporation follows through with its public benefit commitments. A good strategy might be to split investments between SRI funds and high performing stocks, donating some of the profits from the latter to nonprofit organizations with proven track records.”
Read the full report here: https://www.newsday.com/business/socially-responsible-investing-1.19216571