There are many schools of thought when it comes to selecting companies. There are value methods, as endorsed by Benjamin Graham and Warren Buffett. There are technical methods that look at numbers and statistics only. There is the dart board method, the dogs of the Dow and hundreds or thousands of others. I would like to talk about something that can be used in concurrence with any of them. This has been in the news lately and I think it warrants a bit of discussion. How responsible is the company that you are investing in and do their practices match up with your beliefs?

This is a highly individual perspective on investing and is different for each of us. I have invested in a small biotech company that is totally outside the parameters of my usual stock selection methods. I did so because I felt the product they were researching would have a highly positive impact on humanity and I wanted to be a part of that process. I also thought that if when they succeed; I would make a boat load of money.

I spoke to a friend about the company and she asked how they tested their product. I had no idea. She refused to invest unless she knew their methods were ethical and that they didn’t do animal testing. That statement got me thinking about other investments I have made. Do you feel right investing in companies that have huge returns, but have really bad environmental practices? Do you invest in companies that are looking to the future and have positive charitable causes?

Phillip Morris spends a lot of money on educating people on the dangers of tobacco use, but they still make their money by selling a product that is known to kill people as a side effect. It also is a product used more by the uneducated and the poor. They also only make those commercials and provide that education as part of a lawsuit settlement. So can you invest in a company that has practices like that?

I am not making a judgment on them, or on anyone who chooses to invest in them. I just feel that people need to realize what they are getting into and how companies make their money. This issue has become larger as more information gets out to the public and people begin to live their lives to a higher standard. British Petroleum, BP, has started to shift their focus to other energy sources than oil. They have gone so far as to say that the BP now also stands for ‘beyond petroleum.’ Is it just hype in their commercials or do they have a mission that rises above their roots? That is also for you to judge.

Many investment firms now are offering mutual funds that take the socially responsible investing into account. There are funds specifically for alternative fuels and funds for environmentally responsible companies. Other focuses include quality of life, avoiding nuclear power usage, employment policies, community relationships, alcohol and weapons production, just to name a few.

Where do you stand? Again, this is not passing judgment. The purpose is to expose you to the concepts of what is available out there for your consideration.