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View Poll Results: Do you consider social responsibility when choosing investments?
No, not at all. 34 39.08%
Not in choosing investments. I support my chosen causes in other ways (e.g. donate money or volunteer). 40 45.98%
I've thought about it, but right now it's not my top priority. 7 8.05%
I have taken some steps in that direction (e.g. investing in screened mutual funds). 4 4.60%
Social responsibility is a high priority for me. I consider it in all my investment decisions. 1 1.15%
It's of the utmost importance to me. I don't invest in anything that doesn't meet my social responsibility standards, and/or am a shareholder activist.. 0 0%
Other (describe if you wish). 1 1.15%
Voters: 87. You may not vote on this poll

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Poll: Are You a Socially Responsible Investor?
Old 04-08-2010, 01:18 AM   #1
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Poll: Are You a Socially Responsible Investor?

Socially Responsible investing came up on another thread recently. How much, if at all, do you consider social responsibility in choosing what to invest in? My nutshell definition of social responsibility in investing is "not profiting from doing bad things, and/or investing in a way that promotes good things".
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Old 04-08-2010, 07:28 AM   #2
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Investing primarily in index funds, so socially responsible is not an available screen. Give directly to charities, relief efforts, etc., that we believe are worthwhile.
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Old 04-08-2010, 07:39 AM   #3
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How about another choice of "never really thought about it. thanks for bringing it to my attention."

I voted "other".
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Old 04-08-2010, 07:56 AM   #4
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Social responsibility never entered my mind when I bought my little bag of abandoned and abused stocks last Spring. However, it did enter my mind after buying some of them.

The 2 stocks that somewhat bother me are LVS and PCX.

Rocky - I was surprised to learn that Wellington Fund owns a bit of LVS.

Anyone who is interesting in what their index or mutual funds own can find that info here. LAS VEGAS SANDS CORP (LVS) | Fundville.com
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Old 04-08-2010, 08:21 AM   #5
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Old 04-08-2010, 08:30 AM   #6
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Since some of my best performing individual stocks are Altria, Diageo, Apple, and In-Bev, I guess I'll say...no. (Option B actually)
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Old 04-08-2010, 08:43 AM   #7
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Quote:
Originally Posted by kyounge1956 View Post
Socially Responsible investing came up on another thread recently. How much, if at all, do you consider social responsibility in choosing what to invest in? My nutshell definition of social responsibility in investing is "not profiting from doing bad things, and/or investing in a way that promotes good things".
No, I don't. When it comes to investing I am a "globalist". I try to keep my weightings close to what the market weightings are, i.e. 40% US and 60% foreign as of now. I am also primarily an indexer although I do have some actively managed funds. So, it would be impossible for me to try and invest with a particular social objective. Besides, I have no idea what specific companies I am invested in anyways.
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Old 04-08-2010, 08:48 AM   #8
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No..Not at all. I'm an Index investor. Now if I was investing in stocks, I would probablly avoid investing in companies that I morally object to.
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Old 04-08-2010, 08:50 AM   #9
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No..Not at all. I'm an Index investor. Now if I was investing in stocks, I would probablly avoid investing in companies that I morally object to.
Agreed. If I invested in individual stocks I would likely avoid ones that do stuff I object to. You can't really do that investing in most mutual funds and ETFs.
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Old 04-08-2010, 09:01 AM   #10
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Investing primarily in index funds, so socially responsible is not an available screen.
Same here.
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Old 04-08-2010, 09:04 AM   #11
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Since some of my best performing individual stocks are Altria, Diageo, Apple, and In-Bev, I guess I'll say...no. (Option B actually)
Wasn't it Peter Lynch who said one should invest in companies one knows well? If so, I would have a lot of money in Diageo, In-Bev and a strong past association with Altria...
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Old 04-08-2010, 09:20 AM   #12
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There have been some screens around that I have seen on ethical investing and green investing. They show underperformance.

I selected option 2.
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Old 04-08-2010, 09:26 AM   #13
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Since I invest through mutual funds (and I didn't specifically seek out socially responsible mutual funds) I don't have any say in which stock gets bought or not, so I do not invest in a socially responsible way.

If I bought stocks individually, I probably would because there are a few corporate practices that bother me.

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Old 04-08-2010, 06:50 PM   #14
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I choose 1, but I do my part to be socially responsible (recycling, limiting waste, volunteering, etc.). Option 2 sounded too much like a guilt trip and I don't feel guilty if the companies I invest in are not considered socially responsive.
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Old 04-08-2010, 07:14 PM   #15
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Generally I think "social investment" funds lag the market. Seems like a silly way to invest.

But the last year or so, these funds have done really well, coming in close to the top in year to date and 1 year results. Long term results, not so good. Also of note, FTSE has a social index (tracked by a fund at Vanguard), so even indexers can get in on the feel good action. And I saw a few Christian/Methodist ETF's lately, if that is your poison.
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Old 04-08-2010, 07:20 PM   #16
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"Socially responsible investing"rewards and encourages societal immorality. How?
-1) Assumption: "Socially irresponsible" companies perform as well as companies in general. (Like kcowan, I've seen studies indicating "socially responsible" companies underperform the market, which supports this assumption)
-2) To the degree that these "socially responsible" investors refuse to buy "socially irresponsible" stock, they reduce demand and therefore market price for these stocks.
3) This makes the price of these "socially irresponsible" stocks attractive. Greedy, socially irresponsible investors with no concerns about the nefarious activities of these evil companies can buy these stocks, enriching themselves.

QED: The actions of "socially responsible" investors serve to reward the least scrupulous in our society, thereby encouraging these irresponsible attitudes.

I, for one, couldn't sleep well if my investment actions served to degrade society.

A truly responsible investor would seek out and buy the sin stocks to prevent the miscreants from profiting.
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Old 04-08-2010, 07:22 PM   #17
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I was looking at choice #2 with 22 votes. Does this mean that you'd invest in a tobacco company and give to the Cancer Society?
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Old 04-08-2010, 07:33 PM   #18
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I question the basic premise of "socially responsible" investing. If I don't buy 100 shares of Phillip Morris or Diageo, someone else will. My decision will have no effect on whether the company continues in business or not. At best, the share price is the only thing that is affected (because there is lower demand, at least from me), and I doubt that the effect is even noticeable. Even if it did have a noticeable effect, that just means those with less scruples than me will get earnings at a better price. In my opinion, it is far better to make your money where you can and then donate it to causes you support. i.e. - if the Devil helps fund my efforts to defeat him, so much the better.
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Old 04-08-2010, 08:00 PM   #19
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I try not to get emotionally involved with my investments. They are there to make money, period. If there's a socially responsible fund that will do that for me, sure, I'll consider it. In fact, the funds of MD Management, the financial arm of the Canadian Medical Association, stay away from tobacco stocks on principle, and do well. But a decision to invest in those funds is based on their overall performance.
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Old 04-08-2010, 09:08 PM   #20
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Other, really.

I invest in individual stocks so part of my decision is if I want to support the company.
No, my investment isn't going to make or break a company, however, I won't invest in a company if I am abhorred by their behavior and/or products.
It is a sliding scale, so they have to be pretty bad for me not to invest
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