As a physician, ethical behavior is part of your oath. Your daily tasks are governed by morally responsible behavior and the drive to foster your patient’s health and well-being. It wouldn’t be surprising, therefore, if you were morally driven in your investing as well.
According to CNBC, socially responsible investing (SRI) is an approach in which an investor is interested not only in a company’s monetary value, but in their moral and ethical standards as well. SRI investors hope that their investments not only bring them wealth, but also serve as an investment in the greater good, resulting in a positive impact on the world.
SRI, which is also referred to as environmental, social, and governance investing (ESG), would, for example, seek out companies that have a limited carbon footprint or donate a certain percentage of their profits to charity.
SRI takes investing to the next level because it’s not just financial success that matters—just as important is the ability to apply your investing dollars to preserving our world and improving the plight of those who inhabit our planet. And this movement is gaining traction. CNBC reports a significant increase in SRI in the past few years, and the trend seems to be continuing in an upward trajectory.
Although physician investors who espouse to SRI are truly attempting to do good, they should be aware that the same rules of any investing apply. The danger of limiting your portfolio to SRI investments is the potential to lose the balance that comes with a diversified portfolio.
SRI is admirable and can make a positive difference in the world. Just make sure that your portfolio still has enough diversification to protect your future so you can continue being a crusader for good.