David Schwartz's profile

Social Impact Vs. Socially Responsible Investing

Since co-founding Slate Property Group in 2013, David Schwartz has managed all of the firm’s construction and development projects, including multi-family housing and mixed-use property projects. While operating the company, David Schwartz employs various investment methods, including responsible investing and impact investing.

While both investment types are integral to the full spectrum of responsible investing, 'social impact investing' and 'socially responsible investing' differ in concept. Social impact investing focuses on allocating resources to projects primarily dedicated to fostering environmental sustainability and/or positive social outcomes. Additional objectives may include generating returns. Social impact investors provide funds for corporations (private, public, non-profit, or business) actively working on projects with positive social prospects or projects that promise to address current social challenges.

Socially responsible investing (SRI) is a more ethically-conscious approach to investing. SRI investors fund projects underpinned by certain social values (such as political beliefs or religion) in the hope that contributing to the success of such projects will play a significant role in the outcome of that movement. These investors take the liberty to promote certain ethical ideas with their funds. For example, an SRI investor with a strong anti-conflict belief may explicitly instruct his portfolio manager to divest from corporations that manufacture firearms.
Social Impact Vs. Socially Responsible Investing
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Social Impact Vs. Socially Responsible Investing

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