Socially Responsible Investing

In a world that it now irretrievably globalized and interdependent, a large portion of economic activity is being handled by large, multinational corporations of no particular national loyalty. Global Citizens are neither libertarians nor socialists, so we neither fervently support nor fervently oppose this economic model. It is simply a reality.

Living in a world largely run by multinational corporations is essentially like riding in a bus controlled by a programmable robot which, barring any instructions to the contrary, will steer the bus to its destination along the quickest and least costly route. If the quickest and least costly route involves running over dogs, cats, children, and grandparents, and smashing its way through houses of worship or childrens' hospitals, it doesn't matter at all to the robot. He's just trying to get the bus to its destination as quickly and cheaply as possible.

Multinational corporations, if left unguided by their shareholders, will pursue maximum profits by any means necessary. They will not care a wink if their activities cause massive amounts of environment damage, destroy the lives of indigenous populations, trample of the human rights of their workers, produce and sell hideous weapons, and get people hooked on addictive products. Common sense government regulation can help alleviate these problems, but multinational corporations will use every legal trick in the book to circumvent whatever restrictions are put in their way.

Global Citizens must be the people who reprogram the robots driving the buses. They still want all the buses to reach their destinations (in other words, have a successful and vibrant economy), but they want them to do so without causing massive amounts of harm and damage. Global Citizens have to be the people who rein in the damage caused by far too many multinational corporations, and put them on the path towards achieving their profits through ethical and sustainable activities.

The best tool to achieve this lofty aim is called Socially Responsible Investing (SRI). People who engage in SRI invest their money only in those companies which meet rigorous ethical standards. Numerous mutual fund companies, such as Calvert Investments, provide their customers with various SRI fund options carefully screened so as to exclude companies which violate ethical standards in terms of environmentalism, human rights, violence, or other matters. SRI is a means of reprogramming the robots that are multinational corporations, so that they pursue profitability without inflicting harm.

If a person invests in a company that manufactures parts for cluster bombs, they are partly responsible for the deaths of the children killed by those weapons. If a person invests in a company that dumps toxic waste into rivers, they are partly responsible for the environment damage and deaths from illness that will result. If a person invests in a company that does business in Sudan, they are partly responsible for the genocide in Darfur.

Global Citizens want a strong global economy and are as eager as anyone else to invest their money in profitable ventures. But in doing so, we must be guided by what is best for the world as well as what is best for our pocketbooks. Socially Responsible Investing is certainly the way to go.