Capitalism That Gives a Crap

“Caring capitalism” may seem to some an oxymoron, but it is the newest buzzword for the increasing trend in socially conscious investing among millennials. According to the Chronical in Philanthropy, the nation’s top news source for those interested in nonprofit development and grant-making, millennials are becoming increasingly aware of the political capital housed in their financial capital. In fact, $1 in every $6 of professionally-managed assets are invested using sustainable and impact investing strategies.

As government continues to express blatant disregard for its constituents’ wishes, young people opening retirement accounts and inheriting money are acting to shape the private sector instead. Instead of donating to political campaigns, they are seeing better results in buying according to their values.

Conscientious consumerism, as with all political capital, is narrowed down to a very simple formula: the more you put in, the more you get out. How does one become a caring capitalist? It can be as simple as buying a reusable shopping bag. I break it down into four basic actions:

1. Boycotting- this is a classic, a very powerful tactic. I personally boycott any product tested on animals or clothing made with fur. Given the right publicity and right-sized mobilization, these methods can see significant results very quickly (I think back to the Montgomery Bus Boycott).

2. Buycotting- the opposite of a boycott. This tactic is responsible for the increase in availability of organic foods in supermarkets. It’s as simple as supply and demand. When we demonstrate demand for a certain product, businesses scramble to supply it.

3. Socially Responsible Investing- While I understand that it is nearly impossible to convince a twenty-somebody to open a retirement account, once you do, make sure you know the companies you are supporting with those dollars. Many asset managers have funds designated “socially responsible,” and the Forum for Sustainable and Responsible investment keeps track of these funds while monitoring performance.  

4. Donating to charity- though this tactic won't render a direct return, it is still a vital component to a healthy financial life. According to Giving USA's 2013 report on charitable giving, 72% of charitable contributions come from individuals. Personal giving is the single most important determinate of a thriving nonprofit sector, and there are even ways to be conscientious about charitable giving, with organizations like CharityNavigator.org and CharityWatch.org can help you maximize the power of your donation.