About FPSC & the CFP		CFP Standards, Requirements & Policies
FAQ:FPSC | FAQ:CFP Designation		Code of Ethics | Practice Standards
CFP Licensee Stats | The CFP Internationally		Disciplinary Rules and Procedures | Standards Enforcement
Partner Organizations | FPSC Board of Directors		Trademark Use Guide | Licensing Policies
Meet FPSC Staff | Award Winners		Online Licence Renewal
Continuing Education		Resources
FAQ:CE Requirements		Learning Centre
CE Requirements		Marketing Support
Event & Seminar Calendar | CE Exemption Form		FPSC Discussion Forums | Job Site
		Licensees' Q&As
FPSC Communiques
FPSC Bulletin | E-Blast News
Media Releases | FPSC Comments
Update | Annual Report

What is Socially Responsible Investing?
November 2002

Socially responsible investing is the application of peoples' values to their investments. It includes all the financial decision-making processes that are a part of a prudent investment management approach with the selection and management of investments based on peoples' ethical, moral, social or environmental concerns.

Social investing can be done by individuals or institutions such as foundations, religious organizations, trusts, investment pools and pension plans.

There are three basic approaches to socially responsible investment:

1. Positive and negative screening: This is the application of social and environmental guidelines or "screens" to the investment process. It can be done directly by investing in particular stocks or other investments selected according to specific screens, or through socially responsible mutual funds employing pre-established screens.
   
   Negative screens usually include issues such as tobacco and military production, companies operating with sweatshop or child labour, or the manufacture of alcohol or pornography. Positive screens include companies making a contribution to social, economic or environmental sustainability or industries with exemplary employee practices.



2. Community Investment. This is the investment of money into community development or micro-enterprise initiatives that contribute to the growth and well-being of particular communities.



3. Shareholder Advocacy. This is the process of using shareholder influence to help to bring about positive social environmental change at corporations.

Excerpted from "What is socially responsible investment?" Published by the Social Investment Organization. For more information, visit www.socialinvestment.ca to learn more.