For a long time, money used for good will was called charity, while money used to make more money was called investing. No more.

Nowadays, the two ideas are combining into a financial area called socially responsible investing. And both investors and mutual fund managers are figuring out that this new idea can be very rewarding, as well as do some good for the environment and society.

“Socially responsible investing means you don’t have to compromise your own personal beliefs to make money on Wall Street… whatever those beliefs are,” states Bob Guthrie, who is an investment broker with A.G. Edwards in Burlington, Vt.

Even back in the early 1900’s the idea of choosing investments for social reasons occurred when church members formed together and refused to invest in tobacco or alcohol companies. Guthrie also says that the trend has continued with investors dodging corporations associated with the Vietnam War or companies investing in South Africa. And that trend continues today with investors selecting companies that are more environmentally friendly over those that are not.

But growth in this type of investing has mushroomed during the past few years as more and more investors have moved social consciousness into the mainstream of investing. And the impact is being felt.

With help from stockholders, says Rob Kruger, vice president of portfolio management at Progressive Asset Management, business practices concerning the environment are beginning to change, While the issues may differ, he said companies are realizing they will suffer the consequences if they aren’t viewed as being socially responsible.

“As this investing community continues to grow, a lot of proposals are being put forth by investors at annual shareholder meetings,” Kruger said. “A whole range of issues and activities is now being addressed.”

As part of its operational procedures, Progressive Asset Management conducts research for eco-friendly and socially responsible mutual funds. The firm filters out companies for environmental problems or nuclear involvement or whatever issues their clients are concerned about.

“As the clock ticks, companies are becoming more and more cooperative with us,” Kruger said. “A lot of them are now very anxious to talk about these social and environmental issues.”

Guthrie agrees that business practices are changing and says American companies are aware of shareholders who are concerned with the environment.

“Make sure your hard-earned capital is not invested in companies with little concern for the environment,” he advises. “Be sure to keep these things in mind when you invest and companies will too.”