With socially responsible investments in your portfolio, you understand the importance of the triple bottom line in analyzing corporations for SRI investment performance. The underlying principles are sound, but how can you take the next step in turning theories into practice for your socially responsible investments? If you are looking to add socially responsible stocks to your portfolio, how can you conduct your qualitative and quantitative research?

The key to selecting socially responsible stocks that maximize the triple bottom line is by reading closely and in between the corporate social responsibility reporting lines. However, in analyzing corporate reports, keep in mind that many companies use them as a marketing tool. Thus, simple and honest reports are what you should look for in social investing – while viewing flashy ones with an even more critical eye.

Often overlooked, a company’s annual report can expose a tremendous amount of information regarding whether it is practicing socially sound or unsound principles. In fact, reading an annual report can often reveal irresponsible business practices or subsidiary operations that would divert socially responsible investment dollars.

As a part of the triple bottom line, corporate social responsibility governance policies can be delved into through the corporate structure. By reviewing the board of directors’ structure, along with each capital classes’ voting rights, you can discern a tremendous wealth of information regarding the responsibility of a company’s corporate governance policies.

In addition, a socially responsible investor should review recently submitted shareholder resolutions, as this sheds a significant amount of light on potential social responsibility problems. As a cornerstone of socially responsible investing, shareholder activism efforts can determine how well a company is growing its triple bottom line.

Voluntary sustainability and corporate social responsibility reports are strong indicators of a company’s efforts to be socially responsible. Highlighting efforts related to community, employee, corporate, and environmental sustainability, these reports are becoming increasingly prevalent.

According to research conducted by the Social Investment Analysts Research Network , approximately 40% of companies listed on the S&P 100 Index and 82% of the largest global companies publish sustainability reports.

Regardless of your interest in social investing, reading the sustainability, corporate social responsibility, and annual reports is a smart investment strategy. These reports provide the investor with a wealth of knowledge regarding the pressures the business faces, the effectiveness of its corporate governance policies, and its ability to adapt to market changes. For the socially responsible investor, the research for triple bottom profits pays two-fold – both in profits and an ability to contribute to social good.