ShoreBank Blog

A Bank is a Socially Responsible Investment

by Jean on December 30th, 2008

As we end this year of economic turmoil, now is a good time to reflect on how values influence financial returns.  The financial crisis we experienced this year illustrates how closely linked business ethics and responsible investing are to long-term financial sustainability for individuals and our nation’s economy.  The greed that drove some of the exotic products and non-prudent behaviors that are at the heart of the financial meltdown clearly are unsustainable.  As a result, ethical investing or socially responsible investing has become even more appealing to those looking for a match between their personal values and their financial investments.

Socially responsible investing describes an investment approach that seeks to maximize both profit and social good, including community development and environmental sustainability.  Socially responsible investors, rather than focusing on short-term results will concentrate on the long-term impact of their investments.  Here is a short checklist of questions to help those who are considering socially responsible investing:

• What are your personal values? What do you want to support and what do you want to avoid?
• What companies and/or mutual funds line up with your values?  Is there a priority set of values that you want to use to screen your investments?
• What metrics are available to compare investment opportunities against your priority values?
• What level of risk are you willing to take?  How can you find a safe alternative for that portion of your investments that you do not want to put at risk?

It is important to note that if you wish to make as socially responsible investment, there are places other than the stock market to invest your money. Community development banks offer a good “safe haven” in which to invest and make a difference, providing FDIC insurance and a guaranteed rate of return.

Community development banks, like ShoreBank are performing well while still offering loans and banking services to underserved populations. Who would have thought that your 2009 SRI portfolio could include a savings account?

ShoreBank is considered a pioneer in socially responsible investing.  As a triple bottom line company that measures profitability, community development and environmental impact, we find growing customer interest in our range of market rate, FDIC insured deposit products. Just as we measure our social responsibility, so you should also evaluate a company on its social responsibility, prior to investing.

CommunityInvest.org and SocialInvest.org are great additional references if you are considering taking the first steps in socially responsible investing. I also invite you to take a closer look at ShoreBank, both online (www.shorebankdirect.com) and by speaking in person with our Mission Based Deposit team representative at 1-800-669-7725.

Happy New Year!

Tags: community development, FDIC, green banking, ShoreBank, socially responsible investing, triple bottom line

This entry was posted on Tuesday, December 30th, 2008 and is filed under Banking Industry. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.