Wikipedia defines Socially Responsible Investing (SRI) as Socially responsible investing (SRI), also known as sustainable, socially conscious, “green” or ethical investing, is any investment strategy which seeks to consider both financial return and social good.[11] Simply put Socially Responsible Investing (SRI) is making investment decisions to achieve social and environmental returns without compromising on profitability. As Socially Responsible Investors, while evaluating where to invest their money investors also put social, ethical, environmental and governance concerns in the balance.

Socially responsible investors select and evaluate investments on the basis of both financial and social criteria to make sure that the investments they make are consistent with their value system and beliefs.  Some people are concerned about investing in the companies which are involved in things like alcohol, tobacco, gambling, military weapons, etc. Some are concerned about effects companies have on environment. Some want to ensure the protection of human rights. Usually these investors tend to exclude from their portfolio, companies that are involved in these controversial activities or that do not match their value system. Some socially responsible investors go a step further and choose to invest in companies that show leadership in social issues like companies that pay fair wages to their workers. They use these screening criterions while making investment decisions to make sure that in the process of making money or in the hunt of superior returns they are not supporting or funding socially irresponsible or unethical businesses.  Also as more and more investors use such screening criterions, they raise awareness to firms that are not responsive to social concerns and they can place pressure on those firms to change. [2]