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For a long time, money used for good will was called charity, while money used to make more money was called investing. No more.

Nowadays, the two ideas are combining into a financial area called socially responsible investing. And both investors and mutual fund managers are figuring out that this new idea can be very rewarding, as well as do some good for the environment and society.

“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.

But growth in this type of investing has mushroomed during the past few years as more and more investors have moved social consciousness into the mainstream of investing. And the impact 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 forward by investors at annual shareholder meetings,” Kruger said. “A whole variety 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 the clock ticks, companies are becoming more cooperative if not anxious to talk about how they are more socially and environmentally responsible.

Guthrie agrees that business practices are changing and says American corporations are aware of stockholders who are concerned with the environment.

He advises, “Make sure your hard-earned money is not invested in companies with little concern for the environment. Keep these things in mind when you invest and the corporations will do the same too.”

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