Shareholder Shout-out

In early 2006, oil giant ExxonMobil, which had funded research to disprove global warming, admitted that fossil fuel consumption was heating the planet. The statement made headlines around the world, but for one investment firm, it represented a success of monumental proportions. Christian Brothers Investment Services, an investment firm focused on socially responsible investing, had filed a resolution regarding ExxonMobil's climate change policies, withdrawing it only after ExxonMobil agreed to release the statement that captured the world's attention.

Christian Brothers Investment Services' victory kicked off an unprecedented year for successful shareholder activism. In the first three months of 2006, shareholder resolutions filed against Starbucks, Georgia-Pacific, General Motors, Chevron, Monsanto, and Halliburton, to name a few companies, were withdrawn after the companies agreed to change or address corporate policies on issues ranging from climate change to human rights policies to labor standards. In 2007, As You Sow Foundation has already filed 15 shareholder resolutions including ones with Apple (computer recycling), AT&T (consumer privacy) and DuPont (genetically modified organisms).

With socially responsible investing (SRI) now valued at $2.29 trillion worth of shares, it has become a powerful economic force shaping the way corporations do business. In fact, nearly one in every 10 investment dollars is an SRI dollar—making up nearly 9.4 percent of the $24.4 trillion in total investment assets in the U.S. today.

The bulk of SRI assets are invested via socially-screened mutual funds and stocks into companies that have made commitments to improving environmental and social conditions, as well as in community investment projects, such as microfinance. However, some investors seek out mutual funds with shares in problematic companies specifically in order to change behavior. "Investing in 'green' companies and working to improve the laggards are both valuable strategies," says Todd Larsen, Co-op America's Director of Corporate Responsibility Programs. Leila Salazar Lopez of Amazon Watch agrees, saying that even investment in companies with poor track records "gives socially responsible shareholders an opportunity to try to make change from the inside."

Here's how you can invest responsibly even if you've never put a dime in the market before.

Portfolio Screening
The first step a potential investor will take is to screen portfolios on social and environmental criteria, including responsible environmental and human rights policies, strong employee relations, pollution prevention, waste reduction and recycling among others. If you've never bought stock shares, invested in mutual funds or simply want to begin investing your money in a socially responsible way, there are countless resources available to aid in helping you make the best decision for your money. Organizations like Co-op America and SocialFunds.com offer detailed instructions on getting started as a socially responsible investor and lists of socially responsible mutual funds can be found on the Social Investment Forums website (see Resources, below).