Customer Reviews

Investing for Change: Profit from Responsible Investment

5 star:		(12)
4 star:		(20)
3 star:		(10)
2 star:		(1)
1 star:		(0)

 

 

This book has some good qualities but some annoying issues. It makes some excellent points about how individual investors can make a difference for the better through Socially Responsible Investment (SRI). The book is well researched and does a great job at bringing together a wide variety of source data, and analyzes that data in order to show the benefits, both moral and financial, of SRI. It has a good set of end notes, and a very good quality index. An appendix lists SRI mutual funds. There are frequent side-bars to give examples of certain points or define a term.

The authors group potential investors into three color-coded groups (to help avoid confusion in the closing chapters as the strategies are compared): Yellow, blue, and red. The yellow group want to avoid investing in certain industries or companies, regardless of the potential loss in portfolio returns, the blue group will tolerate "not terrible" companies but avoid "terrible" companies. An example would be the blue investor might consider a company that produces alcoholic beverages if it did not target young drinkers, where the yellow group would not consider any alcoholic beverage company, if that was a value they held. The red investor would be one who only would buy a company with good values if it had superior returns over another similar company with so-so values.

One of the things I found interesting was the positive impact of shareholder resolutions, even when the resolutions do not pass. A large institutional investor was able to influence a company 95% of the time even though only one of its resolutions passed. They make a good case that SRI is building enough momentum to truly make a difference.

Now some quibbles. Even though I have a degree in finance, it took me quite a while to wade through the book. It seems to be marketed to a wide range of investors, but some of the material will scare off a lot of people, which is a shame, as a lot of the techniques described are easy to do. There is a lot of repetition, and they always mention the authors and the firm or university of studies they mention in the text, even though that is in the end notes, making the text awkward. And one idea they don't even mention, is for investors to review the prospectus information for their current holdings to look for problem areas.

This book assumes you have at least some familiarity with the stock market. If you happened across some money you'd like to invest, and have never paid attention to the market, this book is not for you.

Being someone who does pay attention to the market and does a little day trading, I found the book's concept to be intriguing. Personally, I don't have many qualms about the companies I invest in, but I was hoping this book might might offer some strategies to steer me in a "better" direction.

Let's just say I didn't run to realign my portfolio after reading this.

The biggest problem I had with this book (and judging from some other reviews, I'm not alone here) is that the authors haven't figured out who their target audience is. Some of the concepts and lack of "how do I?" guidance are well beyond someone new to investing. At the same time, more experienced investors will typically know about the companies they're investing in.

The other problem I had, is that the authors seem less concerned about getting a return on your investment than investing in companies that reflect your beliefs or lifestyle. So on one hand, I'm not really in to sleeping in a room full of Haliburton money like Scrooge McDuck -- But on the other, I'm not betting my retirement and my daughter's college money on Ben and Jerry's simply because they make delicious ice cream. So, you can be "responsible" in the social or environmental sense of the term, but your choices may be wildly irresponsible if you're looking to achieve specific investment goals.

That all said, Investing for Change is still an interesting read in its own right, and the color-coded social investor groups were an interesting concept. I'd buy this book if I had an interest in seeing what direction some investors plan to take in the upcoming years, but I wouldn't use it as a reference for personal investment guidance.

This is a really intriguing book which looks at how investors can use their values to shape not only their stock portfolios, but the companies they invest in as well as explaining how this is a form of social activism. I found this book to be useful in terms of considering how I want to plan my investments to reflect my values as well as helping me be an agent of social change. This book shows that people who are middle class can be socially aware and use their financial influence to be a positive force for change. Different criterias of investing for change are included which examine the motivations of people for doing certain types of investments. Definitely worth reading if you want to use your finances to make a statement about your values.

These days we're all hearing so much about the economy, and receiving such conflicting investment advice! Amid all the noise, it's great to receive some SRI (socially responsible investment) advice. I love the premise -- that we can profit from doing the right thing. It's especially relevant now, with the stimulus package including so much about infrastructure and green technology. Is this advice sound for this scary bear market? Only time will tell.

Yes, I recycle. Yes, I conserve energy. Yes, I try to lessen my footprint on the world. So now, yes, I have some help with investing in a socially responsible way. I have known for years that there were some SR mutual funds, and I have argued and argued with my financial advisors about what is contained in some of my investments, but now, I have more information to help me make long term decisions without sacrificing so much growth. After all, I do want to have something to live on when I eventually (if ever) retire.

This lovely book will help guide you through the maze of nearly 8,000 mutual funds to find those that share your values. What are you MOST concerned about - human rights, animal rights, global democracy, ethnic and/or gender diversity, weapons use....what? With some reading and thoughtful analysis of your lifestyle and long term dreams, you can invest, make a profit, AND make a positive change in the world. Also, it is color coded (I love that) so that you can read straight through, or go for the parts that are most interesting to you.

This is not a new movement, but it has gained more notice and attention, so now is the time. Get this book and invest in your future in many areas at once.

You might ask, in our current economy, who can even afford to invest? However, I know many people who routinely tithe 10% of their income to good causes. There is always the money to put into quality causes, if you take the time and energy to truly be frugal and cautious in your lifestyle. The question then becomes even more important than usual - where do you put those hard earned pennies? You want them to keep you safe, to pay for college for your kids, for retirement for yourself. You also want them to promote a good quality of change in the world.

I definitely appreciate the message of Investing for Change. It is about finding stocks that you can both believe in and earn a good income from, as well as promote social good and environmental health. The book is quite right in stating that the more financially secure someone is, the more they have the luxury of thinking about others and social issues. The trap that many of us fall into is that we feel we "need" a second car, an air conditioner in every room, a high speed cable connection. We do not appreciate that simply by having a roof over our head and a steady supply of food that we are already ahead of 50% of the human population. MTV has done a great disservice to our world by convincing us that we needed cool clothes and jewelry to be even "passable".

Remember that fifty percent of the world's population struggles just to get food and water every day. They survive on $2 a day income. If you have an apartment or house, if you have food in your cupboards, you are doing extremely well. Our society teaches us that we need mansions and yachts to have "made it", when most of us are already princes and princesses in many of the world population's eyes.

So where does this all leave us with this book? A lot of people will look at this book saying "I can't afford to invest in my savings - I am paying for my daughter's $50 pair of jeans to enhance her butt." And others will say "Well I have to buy a high def TV because all the commercials say I need one." I think this book is incredibly timely. We do NOT need those ridiculous items to stay in touch with the wealth of the generation. We need gardens in our windows, canvas bags to carry our groceries, and the saving of our money to invest wisely. If people were doing this all along, and buying gas-conserving cars, we probably would not be in the economic crisis we were in now. Books like this would be standard fare, not unusual items.

So, my summary? Take a look at your house. Ebay the things you really do not need (which for most of us is most of what we own!) Stop watching TV that makes us long for things we don't need. Turn off the alarmist news shows. Take up a hobby and make presents for those you care for. Tithe that 10% of your income and put it to whatever good use appeals to you - your kids' college education, your retirement, helping those around you. Together we really can make a huge difference. We just have to fight the message of mass media, that we must "buy more" to be happy.

And yes, this book illustrates its point with stories, which I think is great. Most people relate better to parables than to dry, cold facts. I highly recommend this book to anyone who has tuned their finances to cut out the marketing chaff, to focus on what is important in life. We can all do it, if we try.

What perfect timing for this book to arrive. With all the world in an economic panic isn't it time for some new ideas on future investment opportunities. What if the world focused its financial opportunities on compassion rather than dollars? Ever heard of reciprocity? Imagine the possibilities of investing for peace rather than prosperity and a new Mercedes.

Landier and Nair offer fascinating concepts about responsible investments in the pages of this book, it isn't necessarily an easy read but it's clear in direction. Just the thought of a world where corporate behavior is monitored for its good rather than its bottom line is well worth fathoming. After all we have seen where greed gets us, maybe it's time to turn these pages and strive for something better. In fact I would recommend this book as part of every corporate bail out package and that every CEO should be made to follow at least one concept that Landier and Nair provide here.

The only fault I have with this book is that it isn't easily accessible for an average investor. There are many, many economic terms and conditions that will sail over the heads of anyone not absorbed in economic theory. But maybe that's what we need, a lesson, so that in the future all of us little guys won't be taken advantage of anymore. If it's really possible to change lets invest in it together.

I've never read another book like this, and I've never really given socially responsible investing (SRI) a thought. That changed after reading this book. The authors present a well researched, organized, and thoughtful case for the support and practice of SRI. They also provide a method for analyzing one's own investments and investing theories in light of SRI. The book is printed in color on glossy paper (which I personally don't care for too much), so the graphs are clear and easy on the eyes. They even use the color feature to color the text when they talk about their blue, red and yellow investor models. Throughout the book are blue sidebars with real life examples of things they talk about, from companies who are socially responsible, to laws and trends that make SRI the wave of the future. The authors also take care to continually relate their ideas back to actually making money, something that some investment books pushing alternate theories often do only sporadically. These guys really stay consistent and on the subject. I have to say, it is a very dry but not difficult read, and being a very scholarly work, the ideas it contains are well supported and fully explained. I doubt that I will change my own personal investment model and portfolio much, but I have to admit, this did give me some new and original ideas to think about.

Have you ever heard the old saying, "Put your money where your mouth is?" How many of us lament other companies using child labor, yet we still own stock in those companies? How many times have we seen a company do something wrong and yet turn around and reward them by investing in their stock?

Let's face it, we are a greedy bunch -- there is no doubt about it. Just look at the economic mess we are in because of it! However, the author of this book outlines ways you can make a profit but in a socially responsible way. He challenges you to put your money where your mouth is.

In this book you'll get advice and find out ways you can invest in causes that you believe in, and still bring home a profit. Sure, the profits might not be as obscene as you have been getting, but then you have to ask yourself -- are you all talk and no action? Are you willing to go against your principles and morals to make an extra $1? If so, this book is definitely not for you.

A wonderful book written by a very knowledgable author in the investment field. If you want to make a difference with your money this book is a great read and one you hopefully will learn a few new ideas and philosophies on investing.

In this current time of American and Global financial turmoil, rising cost of food, increased foreclosures, global warming, corporate bailouts and the recession in the economy, this book outlines the methods of responsible investing to promote a common good in corporate America and in the world market. Socially Responsible Investing (SRI) is a way we can invest responsibly. In a way, "Money Talks".

As the authors quoted Kofi Annan, the UN Secretary General (page 41):
"If implemented, they have tremendous potential to more closely align investment practices with the goals of the United Nations, thereby contributing to a more stable and inclusive global economy"

Investing in my core values is an interesting concept to me, and has a broader scope of promoting a positive influence on society. Whether your priorities are for human rights, healthier food, supporting democracy, animal rights, lowering carbon dioxide emissions, avoiding the sale of weapons to oppressive regimes (i.e. Darfur), not capitalizing on addictions (e.g. tobacco, alcohol, gambling), ethnic diversity in management or equal opportunity employment, as the authors have outlined, this book outlines the specifics of SRI.

Each chapter addresses the following issues:
Investing to Express Your Values: A Natural Idea
Can SRI Achieve Change?
Profits or Values?
Values and Increased Profits?
Is SRI Sustainable
Your Values

The book has extensive data and is well referenced, if you have a desire to research this topic further. The reader is also introduced to K&D Research and Analytics that reviews thousands of corporations and scores companies for strengths and concerns related to community, diversity, employee relations, human rights, product safety, pollution and climate change (page 64) and companies are ranked by their Social Responsibility Scores.

Although historical trends are not a predictor of future performance, investments in SRI portfolios have been in step with the S&P 500. Responsible Investment has influenced major corporations such as Coca Cola, Wendy's Internation, Baxter International, McDonald's, Disney, Gap, and Proctor and Gamble. Lobbying has lead to advocating passing a national energy bill to expand clean energy, reduce dependence on oil and curb pollution that causes global warming (page 50).

The book also helps the reader characterize himself or herself as what type of investor he or she is:
1) Feels morally obliged to avoid companies that are not compatible with personal values
2) Desires change if the financial cost is small
3) Not motivated by moral concerns

We are now at a time in history, where corporations must focus upon achieving the common good, in addition to expanding profits. Even in my personal pre-contemplation phase of investing, small changes can lead to large changes in the number of participants (page 111); take the industry of tobacco, for example.

Not all of the book is theoretical. This book also helps the investor decide on how to analyze his or her portfolio and make the change. The appendix lists a few companies that offere SRI funds.

I can forsee more books on this topic. This approach can only better each and everyone of us in our respective communities, our lives and our children's future.

VERDICT

Highly recommend this book for investors, corporate America, foreign corporations, academics and politicians.

2 Thumbs up!