It may seem impossible but it is possible to make money and do good at the same time. As more individuals become concerned about the environment and the social impact of their investments, ethical investing is becoming increasingly popular. Investors are looking to become more aware of the day to day activities of large corporations. Here are a few ways that you can become a more ethical investor.

Become an active shareholder

As a shareholder in a corporation, you do have a voice and a right to be heard. One of the ways to do this is by submitting proxy resolutions about any activities that the company is engaging in that you may disagree with. The voice of shareholders can change the operating procedures of companies and make them behave in a much more shareholder friendly manner. Shareholders have the power to make companies live up to their social responsibilities to the communities that they operate in and the world around them.

For example, in 2005 General Electric (NYSE:GE) launched Ecomagination, representing a commitment to produce technology that reduces energy consumption and waste. The move paid off as GE reported $10 billion in revenues from the line in 2005 and projects $20 billion in annual sales by 2010.

Selling shares of chronic violators

Removing your money from a company that operates in an unethical manner can go a long way towards making a company pay attention to your cause. A group of investors or an individual with a substantial position can make the choice to sell off shares of companies that they disagree with. This includes selling off mutual funds that contain companies that operate in an unethical manner. If enough investors choose this course of action, a company may be willing to dump its standard operating procedures.

Buying shares of ethically responsible companies

Your investment dollars are a vote of confidence. Buying shares of companies that do things the right way is a sign of support for the company’s business model. Search for companies that have received high marks for their corporate governance and are the cream of the crop when it comes to being socially responsible. You can select any of the 400 companies in the Social Index. They have been pre-screened and have been found to be ethical investment opportunities.

Invest in the community available

Investors do not just have to stick to investing in publicly traded companies. They can invest in the communities around them. This is often the best way to make the biggest impact. Contributing to a community development fund is often a good way to promote a specific cause that you care about. Community development organizations are often focused on economic empowerment, environmental causes, and doing social good for the community as a whole.

Community investing is a strategy to address unemployment, environmental degradation, economic restructuring, poverty and social exclusion. It is a way of generating resources and opportunities for people and communities who are underserved by mainstream financial institutions.

Starting your own organization

If you cannot find an organization that supports the causes that you are aligned with then you can always start your own. You can set up your own philanthropic organization by filing the appropriate paperwork with the government. You can get venture capital from family members, friends, and other investors. You just may find that you have started an organization that invests in social causes that others care deeply about.

Starting an organization like this has always been one of my dreams and I hope to make it come true one day.

You see, there are a number of options available to the investor that wants to become an active participant in the social investing arena; you just have to do your due diligence with research.

So, are you starting to become an ethical investor? What are some of your strategies?