For a very long time, money used for good will was called charity, while money used to earn more money was called investing. That’s not the case anymore.

Today, the two ideas are coming together in a financial avenue called socially responsible investing. And both investors and mutual fund operators are learning that this new idea can be profitable, and do some good for the environment and society at the same time.

“Socially responsible investing means you don’t have to compromise your own personal beliefs to make money on Wall Street — whatever those beliefs are,” said Bob Guthrie, an investment broker with A.G. Edwards in Burlington, Vt.

The idea of selectively choosing stocks for social reasons dates back to the early 1900s, Guthrie said, when church members banded together and refused to invest in tobacco or alcohol companies. The trend continued with investors dodging corporations involved in the Vietnam War, he added, and most recently revolved around companies investing in South Africa.

So, yes, growth in this type of investing has ballooned during the past few years as more and more investors have moved social consciousness into the main street of investing. And the impact of this trend is being felt.

Rob Kruger, vice president of portfolio management at Progressive Asset Management says that with help from stockholders, business practices concerning the environment are starting to change. He said while the issues may vary, companies are realizing they will suffer if they aren’t viewed as being socially and environmentally responsible.

“As this investing community continues to grow, a lot of proposals are being put forth by investors at annual shareholder meetings,” Kruger said. “A whole range of issues and activities is now being addressed.”

As part of its operation, Progressive Asset Management conducts research for socially responsible and eco-friendly mutual funds. The firm screens companies for environmental problems or nuclear involvement… whatever social issues their clients want investigated.

“As time flies, companies are becoming more and more cooperative with us,” Kruger said. “Many of them are now very eager to talk about these social and environmental issues.”

Guthrie agrees that American corporations and business practices are aware of stockholders who are very concerned with social and environmental responsibility.

“Make sure your hard-earned capital is not invested in companies with little concern for the environment,” he advises. “Be sure to keep these things in mind when you invest and companies will too.

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