Socially responsible investing (SRI) is the practice of making investment decisions on the basis of both financial and social performance. The SRI movement has grown into a $1.185 trillion business, accounting for about 1 in 10 U.S. invested dollars. Not surprisingly, the industry has suffered severe growing pains along the way in the form of issues of credibility, demand, and performance. And, to date, the product itself has been limited to equity investing. This article explores these critical issues and whether socially screened bonds can perform as well as or better than unscreened bonds. If so, whole new sets of opportunities are open to the social investor bent on making a buck and a difference.
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