Which of the following is a characteristic of Socially Responsible Investing (SRI)?

Socially Responsible Investing (SRI) emphasizes aligning investment strategies with ethical, social, and environmental considerations. One of the key characteristics of SRI is shareholder advocacy, which involves investors using their ownership positions to influence corporate behavior. This can include engaging with company management, voting on shareholder resolutions, and advocating for changes that promote sustainable practices, social justice, or environmental protection.

Shareholder advocacy is integral to SRI because it allows investors to not only seek financial returns but also to promote positive social outcomes and encourage corporations to act responsibly towards stakeholders and the environment. This proactive approach enables investors to contribute to more sustainable business practices that align with their values, which is a core principle of SRI.

In contrast, high-frequency trading, leveraged buyouts, and short selling do not inherently focus on ethical or socially responsible factors. High-frequency trading is primarily concerned with executing trades rapidly for profit, leveraging buyouts typically involve financial restructuring for profit maximization, and short selling focuses on profiting from a decline in stock prices, which doesn't address social or environmental impact.