What is the impact of investing?

Impact Investing occurs when investors place capital in companies that create financial revenues together with the meeting of socially responsible goals. This investment strategy helps investors avoid companies who believe they are acting extremely or irresponsibly in the business environment. For example, investment in cigarette or alcohol companies usually do not meet the standards of impact investment. This strategy is also a form of triple investment on the bottom line. In investment opportunities, investors focus on financial, ecological and social aspects of companies. All companies usually affect these three elements. People represent human capital that the company either employs or indirectly affects through business practices. Among the indirect people are members of the community and external stakeholders, which rely on business such as suppliers. Companies that routinely ignored these groups often considered undesirable investments Podle social and moral standards. The surrounding environment may include natural resources, as well as flora and fauna in the community. While all companies may have an impact on the environment, some industries are more susceptible to environmental damage than others. For example, mining companies, oil drilling and wooden societies can remove natural resources from the planet. Investing impacts may require individuals to avoid investments to these businesses.

profit is often at the bottom of the theory of triple lower line. Profit is an economic profit that society experiences from its natural activities. Investors achieve personal gain when the company increases profit. The company can either repay this profit for investors as dividends, or keep it in business, increase the operational output. While the strategy of the impact of investing is trying to maximize the profit of the investor, it does not do it at the cost of people and the planet.

Many companies are involved in some form of social responsibility. These activities may include improving the community, complementing natural resources and avoiding dubious business activities. Unfortunately, these activities often lead to lower profits. Any money spent on socially responsible activities often comes from pockets of all investors, not just those who believe in investing in impact. Investors dealing with the reservation of money, they can develop their investment from the company to find more profitable businesses.

Socially responsible investment can also be difficult to continue in the long term. Many companies are involved in many activities that investors can consider inappropriate. Impact Investors may have to remove the invested funds whenever the company engages in these activities, regardless of the profit achievement.