May 25, 2006 - Day 2 - Week 8 - Socially Responsible Investing

For years many of my financially savvy friends; the investment bankers, CPA’s, stock brokers, and money managers have promoted a variety of  ‘opportunities’ that I have been unable to participate in because of  ‘insufficient’ discretionary money.  However, I will admit I did invest in a shale oil project in Rifle Colorado about 20 years ago. No comment.

As a reader and listener I become privileged to information that is both intriguing and often something I wish I could act on.  Throughout my maturing years I have heard of funds like the Calvert Fund or Parnassus Fund.  As my passion has increased for preserving our fragile environment, I have begun to realize I would love to see money directed at those companies or corporations that provide services or products that benefit society.  This week, after listening to Mr. Peter Camejo, I began to realize that money might be better invested in those companies that are doing no harm to the planet or to me, for that matter.

Thus, socially responsible investing takes on a special meaning for me after listening to a man who has run for Governor of California on the Green Party ticket, has been Ralph Nader’s Vice Presidential hopeful, and has developed a strong understanding of how money can make a difference because he is the founder and Chairman of Progressive Asset Management.   His book THE SRI ADVANTAGE – Why Socially Responsible Investing Has Outperformed Financially, was given to Alexandra and me following our interview, and is third now on my reading list.

In a nutshell, for the first time the subject of money placement or investments has become very personal because I see how it relates to my health and the health of the planet.

For example, I might now ask:  Do I want my stock portfolio, such as it is, or for that matter anyone I know, love, meet, or see on television to have money invested in companies who sell products that give me cancer?  Even if R. J. Reynolds or Phillip Morris is touted by the wisest investor advisor in America I would politely decline.  My shares or dollars would simply indicate I endorse and approve of this way of doing business that contributes to cancer proliferating globally. No one argues the fact that cigarettes are carcinogenic, but millions do not make the connection and own stock in tobacco companies.

In addition, I might ask:  Should I buy shares in a company that is contributing to global warming?  How about a company that sells bovine growth hormone, herbicides and pesticides, or fertilizers that bleach coral reefs in the beloved Pennicamp State Park in Key Largo Florida?  Smart questions to ask of oneself today, because our money relates to our belief system.

Socially responsible investing means that I will encourage investment in companies that do no harm.   I do not know the direct links for sure between mantle cell lymphoma and many of the chemicals on the market today, but I will discover the truth as this whole process unfolds.  In the meantime, I am going to adopt the precautionary principle which basically says, better be safe than sorry.

We are all creatures of habit and we have been told to listen to the experts when it comes to investing our hard earned money.  My sense is that more and more of us are asking if our dollars are in mutual funds or stocks that benefit the human family and its fragile planetary home.  That is good.  Money speaks and where it is  placed tells a great deal about what we value.

Peter Camejo was passionate and articulate about all of us re-directing our assets. No, not just to maximize profit, though he made the point repeatedly, that SRI funds are performing well, but because we all are passionate about our personal health, and the health of our children and grandchildren. Where we allocate our money can make a difference.

Knowledge leads to action.  Dedicated open minded research to discern the truth about corporations and companies can lead us all to participate in the solutions for a healthier world.

Back to Week 8