Definition
Socially Responsible Investing screens out companies involved in activities deemed harmful (tobacco, weapons, gambling) while seeking those with positive social impact. SRI is values-based and often uses negative screens (exclusion) rather than ESG's integration approach. It predates ESG and remains popular among values-driven investors.
Example
An SRI fund excludes all defense contractors and gambling companies regardless of their financial metrics.
FAQ
What is SRI (Socially Responsible Investing)?
Investment strategy excluding companies based on ethical criteria.
Why is SRI (Socially Responsible Investing) important?
SRI (Socially Responsible Investing) helps investors evaluate ESG and make more informed decisions.