Whenever they have some savings, people naturally start to think about getting a return for them somehow. However, deciding which kind of business or company to support with their hard-earned money becomes, for many, a matter of ethical and moral concern. Responsible investment is about teaching people to get informed about the nature and practices of the business that a company conducts and how these align with their ethical values.
In this expository essay, we will clarify why relying on socially responsible investment firms is also an intangible gain for the future of our society. These companies provide not only an economic service but also a humanitarian one by making money work for the benefit of good causes and larger groups of people. This essay covers the formulation of a social investing definition and the identification of companies with good community value.
What is Responsible Investment?
Responsible or social investment is an investment that takes into consideration the ability of a company to exert a beneficial influence in a community or for a larger cause. These are usually individual companies whose activity is generally beneficial or whose business practices are seen as such. By putting their money into these companies, people can indirectly shape society for the better.
Serving A Social Cause
The best social investing definition is putting money in the service of a cause of acute interest for a community or for society as a whole. Since every society faces certain specific struggles at every given time in history, social investments have usually been highly connected to the political and cultural climate of their time. From the civil rights movement of the 1960s’ America to the international threat of climate change, socially responsible investing has always been linked with the urgent causes that determine the greatest movements of energy in society. If a person is concerned about climate change, he or she can responsibly put money into companies that have a positive impact on the environment, make organic products, or develop clean energy sources.
This essay considers that one of the most important concerns of socially responsible investment firms is education. Some long-term effects of smart ventures in education are underlined in these expository essay examples. The main takeaway is that supporting education is a service with longstanding benefits for an individual or a community. Writing about these benefits can encourage people to invest their money in companies with educational goals.
Where to Invest My Money?
The simplest way to think about responsible investment is to think about which companies or funds have a positive impact to which you would like to contribute with your own money. Although socially responsible investing has grown popular recently, you want to make sure that this is also a smart financial decision.
Socially conscious companies must make a profit just like any other company for your investments to make sense financially. Weighting the potential for return is crucial. While most people fear that social investing is less profitable in the short to medium-term, that’s not always the case. Renewable energy, sustainability, and technology can be some of the most profitable socially conscious fields to get involved in.
An important thing to consider is that socially responsible investment firms can focus on community investing, where the monetary return is less important with the main goal being of having a strong impact on the community and encourage community development. Depending on where you live, social investing can cover different aspects representative of your political and socio-cultural environment.
If you live in an area with a high rate of alcohol consumption or gambling, investing in a company that produces or sells addictive substances is precisely the most socially damaging thing you can utilize your money for, even if the monetary return is highly attractive. On the other hand, if you live in an area with a high risk of being affected by climate change, putting your savings into companies that promote alternative energy and sustainability is a socially responsible investment that will benefit you, your community and the future residents of your city or country.
Since this expository essay focuses on education, it’s important to notice that socially responsible investing can have a tremendous social impact in this area, but because financial gain is less certain, investments for this cause are less common. However, no company in any field can ever provide assurance of good financial returns and the risk of loss is always there. When it comes to education, monetary loss is a risk, but social gains are a certainty that goes beyond what other companies could ever deliver. Supporting schools, artists, writers, activist movements, and cultural foundations has important value in society.
Before investing your money in any company, you must thus assess the financial prospects of the activity and its social value. Deciding which one is more important depends on each person’s needs, values, and goals in the short-term and the long-term. Writing an expository list of pros and cons can be highly effective in this case.
This essay started with the need to determine the social investing definition and underline the first steps to smart and responsible financial decisions for those looking to contribute to a social cause with their savings. The conclusion is that this can be related to many different areas of human enterprise, where monetary returns can vary but where intangible benefits can have a lasting effect on a local or global scale.
Disclaimer: This content does not necessarily represent the views of IWB.