Critics of Socially Responsible Investing
In This Chapter
◆ Self-defining nature weakens socially responsible investing market
◆ Buyer beware in SRI funds
◆ SRI portfolio creep for performance
◆ Not all SRI investing is tainted
Socially responsible investing has its critics and some of them raise valid concerns to any investor considering SRI investing. There is no industry standard that defines what an SRI investment is and is not. No effective trade group writes or enforces industry regulations governing what investments can be labeled socially responsible.
The result is investment companies and others can set their own standards and their own metrics for measuring performance. This may have been okay when the SRI industry was small ...