Investing has always been about making a financial return, which requires you to use your head and think wisely about where to put your money. Now, though, all types of investors are starting to also think with their heart, aligning their investments with their values and selecting companies that are making a social impact.
Also known as responsible investment, this focus involves considering the economic, social, and governance impact of a company before deciding whether it makes good financial sense as an investment. According to a USSIF report on the socially responsible investing sector, it has grown107.4 percent annually since 2012, with Millennials taking the lead in furthering this investment focus.
Even companies that provide funding are focusing on helping businesses that want to do social good while establishing their own initiatives to give back to local community organizations. Online lender Kabbage, for example, has given back to the Boys & Girls Club and the Atlanta Food Bank, showcasing its ability to help both businesses and nonprofits grow.
Other investment firms, in fact, are reaching out to increase the number of people participating in impact investing.
Impact Banking Ushers in a Click here to read entire article