Socially Responsible Investing

Integrating personal values and social concerns with investment decisions that are mindful of their impact on society is known as Socially Responsible Investing (SRI).

SRI usually describes investments that screen out companies that violate environmental or other laws, use child labor or sweatshops, discriminate in hiring, produce products detrimental to society, or engage in practices deemed reprehensible by most people. SRI considers both the investor’s financial needs and the investments impact on society.

Socially responsible investing is no different from any other investment strategy, it just takes a little more research and introspection.

How Does SRI Work?
There are three common strategies that have evolved to create an SRI portfolio:

• Social Screening
• Shareholder Advocacy
• Community Investment

Social Screening
This strategy describes the selection or de-selection of investments based on social or environmental criteria. Socially concerned investors seek strong records of community involvement, profitable companies with respectable employee relations, and concise environmental impact policies.

Shareholder Advocacy
Companies send proxies to inform shareholders of issues for consideration, and are urged to vote in accordance with their values and what they believe will improve the bottom-line. Sometimes, the issues presented to shareholders are unfamiliar or numerous. In such cases, if the shareholder is unsure of an issue this strategy encourages them to abstain, as a vote is withheld from the voting pool for or against a proposal.

Community Investment
Community investing provides credit, equity, capital, and basic banking products to communities underserved by traditional financial services. Community investing makes it possible for local organizations to provide financial services to low-income individuals, supply capital for small businesses and vital community services.

Making a Difference
You can put your money to work to build a better tomorrow while potentially earning competitive returns today by using SRI. Contact your financial advisor for investment options.

Investments and investment advisory services offered through CUSO Financial Services, L.P. (CFS) an independent broker-dealer and SEC Registered Investment Advisor are Not NCUA/NCUSIF insured, are not credit union guaranteed and May lose value. Space Coast Credit Union is in partnership with CFS. Financial Advisors are employees of Space Coast Credit Union and registered through CFS. Member FINRA/SIPC).

The information on this page is for educational purposes only. SCCU is not engaged in providing estate planning or other advice. Please consult with a competent estate planning professional regarding any specific estate planning questions.