Socially responsible investing can make a positive impact on the world — and on your business.

There is a large, underserved community of people interested in socially responsible investing who are unaware it even exists, says Sucheta Rajagopal, an investment advisor and associate portfolio manager with Toronto-based Hampton Securities Ltd.

After you have informed yourself about SRI (see yesterday’s BYB article “The socially responsible advisor“), your next step is to start introducing SRI to your clients and implementing it in your business procedures.

> Talk to clients
Make SRI a part of your regular business process when talking to clients.

Ask clients and prospects about their views or interests in SRI, either during the discovery interview or during their annual review, says Eugene Ellmen, executive director of Social Investment Organization in Toronto.

Or, you can broach the subject more informally. Rajagopal suggests mentioning current news stories to clients.

For example, if there is an article in the morning newspapers on the oil sands, mention it to clients you are talking with that day, she says. That way you can gauge their interest and concerns regarding environmental issues.

> Dig a little deeper
Double check products and investments, even if they are screened by SRI authorities, to ensure they match your clients’ beliefs.

“Just because an investment is in the so-called ‘social investment world’ doesn’t mean that they’re using the same screening processes,” says Richard Nickerson, an advisor with Assante Capital Management Ltd. in Halifax. For example, two similar mutual funds could both be screened and given a green light, but one might include a company that you know is reputed to have committed human rights violations.

> Get involved
Build a network by joining socially responsible groups that matter to you.

Nickerson, for example, is particularly drawn to environmental issues. He has sat on the board for the Nova Scotia Nature Trust.

In getting to know various groups, their causes and the people who champion them, you can build a network of potential clients and resources.

Many of those clients and networks, Nickerson says, can help keep you informed about environmental, social and governance issues from their research or personal experiences.

Tomorrow: Four myths about SRI

IE