Socially responsible investment (SRI) and shareholder activism are related but distinct concepts. Socially responsible investment involves selecting investments based on environmental, social, and governance (ESG) criteria, aiming to align with ethical values.

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SRI focuses on making investment decisions that consider the broader impact of companies on society and the environment.

On the other hand, shareholder activism involves shareholders actively engaging with the management of a company to influence its policies, practices, or strategic decisions. Activist shareholders may advocate for changes related to corporate governance, environmental practices, social issues, or other concerns to enhance shareholder value.

While both SRI and shareholder activism share the common goal of encouraging responsible corporate behavior, SRI is more about the investment selection process, and shareholder activism is about actively using one’s ownership stake to influence corporate behavior. In some cases, socially responsible investors may engage in shareholder activism as a means to promote ethical and sustainable practices within the companies in which they invest.