How socially responsible investing can make the world a better place

'Put your money where your mouth is'
Now that you know you can put your money where your mouth is while pleasing your wallet, too, start by identifying the values that mean the most to you and researching the companies that affirm your values. A conversation with your financial adviser is the next step in making sure your money works for you – and the world around you.

Plan ahead
Several major pension funds in Canada, such as the Canadian Pension Plan Investment Board, Caisse de dépôt et placement du Québec and the British Columbia Investment Management Corp., have adopted SRI. If you're wondering about your pension fund and have a defined contribution pension plan, go to your employer and ask to see all the options available. If SRI options don't exist, put in a request to your human resources department and ask that the manager of the plan add some SRI options.

Get in the SRI game
• Choose your cause. In his book The Ethical Investor: A Guide to Socially Responsible Investing in Canada (Stoddart, 2001), David Skinner writes: "Ethical investing is simply applying your values and interests to the process of investment. It's using those values and concerns that give your life meaning to give your savings meaning." When it comes to investments, broader is better. Some common concerns include human rights, environment, international operations and labour standards and practices.

• Do your homework. SRI funds in Canada have websites and practise the same transparent behaviour they expect from the companies they invest in. A good place to
begin is Jantzi Research, which evaluates companies' environmental, social and governance performance. Pick up reading material at commercial banks; RBC recently became the first bank-owned mutual fund family to offer SRI products, and more SRI offerings at financial institutions are in the works, including one from TD Asset Management.

• Go to your adviser. Any investment adviser, independent or not, is able to invest your money in the full range of SRI funds. Tell your adviser that you're wondering where it fits in your portfolio. "You want to know the outcomes from a financial point of view and from an ethical perspective," says Elaine McHarg of Ethical Funds. You can have 10 per cent participation to 100 per cent of your portfolio; McHarg says the average is 25 per cent.

• Now that you've made your wishes clear, two situations may unfold. Behind Door No. 1: Your adviser supports your decision and is ready to convert your conventional investments to SRI. If she doesn't know where to start, she can turn to the Social Investment Organization (SIO) for more information about SRI. Behind Door No. 2: Your adviser says no. "Be persistent and don't take no for an answer," says Eugene Ellmen of the SIO. "If your adviser says it's not possible, fire your adviser and transfer your account to someone who will [invest for you]." Find a list of SRI advisers in Canada at www.socialinvestment.ca/Canadadirectory.htm.

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