Advice

Here’s What You Need To Know About Investing In Social Justice

Social change doesn’t begin and end with protests. Instead, change is affected when individuals use their money to invest in the pursuit of social justice.   

In light of recent world events, people all over the world are standing up and taking notice of systemic issues within society. One issue that has drastically affected everyone in society is that of racism.

Anti-racism protests are calling for everyone to stand up; to take action and affect change in systems that have long been associated with the oppression of people of color.  One way to take a stand and show solidarity is by donating money.

Affecting change

People can join protests, donate to organizations dedicated to fighting racial injustice, and shop at businesses owned by minorities. Taking a stand against racism goes beyond posting messages of solidarity on social media.

Sadly, it will be inevitable that the protests and outrage die down. However, this doesn’t mean that the fight is over. Instead, the fight for justice is really just beginning. After the protests, money is what will enable any proposed changes to become sustainable.

Investing in social justice

Donating money to social justice causes isn’t just about finding a worthy cause to make a one-off donation. Real change comes from investing in causes and businesses in order to help achieve true racial justice. In the modern world, there are a number of ways to do this.

1. The benefits of minority-owned businesses

Investors benefit from supporting minority-owned companies. They gain an investment portfolio diversified by industries and locations, which reduces risk. Minority-owned businesses tend to be smaller, which can be an indicator of strong performance. Research shows that smaller companies outperform larger companies over long time periods.

2. Embrace peer-to-peer lending options

For those who have been overlooked by financial institutions, especially the underprivileged, peer-to-peer (P2P) lending can provide new options. Investors involved in funding P2Ps are helping disadvantaged entrepreneurs by making capital more accessible.

3. Invest in companies that financially support racial justice

If you care about racial issues, you can support these interests by investing in companies that are donating money to support women or racial justice. Your investment in a company committed to righting such wrongs enables them to achieve change on a larger scale.

4. Explore startups

Investing in startups with Black or female founders is a great way to show support for social justice and equality. You can invest in startups whether or not they are publicly traded.

5. Rethink your bank

The global banking industry hit $2.34 trillion in 2020. If you’re not happy with your current bank, there are a number of banks out there who put your money towards good. For example, small local banks often reinvest back into the community or have initiatives for African Americans or other marginalized communities.

A final thought

The world is changing. Previously marginalized voices are being heard more than ever before and people are taking to the streets to express their outrage. However, there are more ways to affect change than just using your words.

When it comes to moving towards achieving real social justice and equality, money is king. Whether it’s investing in small companies, changing banks, or exploring P2P lending platforms, you can affect more change than you previously thought.

Like with any investment opportunity, risk should be calculated and evaluated. This ensures that your hard-earned dollars go towards helping businesses and families who can help instigate the most change.

 

Guest post courtesy of Denise Langenegger

Mercy - CBNation

This is a post from a CBNation writer. CBNation is a Business to Business (B2B) Brand focusing on increasing the visibility of and providing resources for CEOs, entrepreneurs and business owners. CBNation consists of blogs(CEOBlogNation.com), podcasts (CEOPodcasts.com) and videos (CBNation.tv). CBNation is proudly powered by Blue 16 Media.

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