Ethical Investing: Profiting with Conscience

Posted By Donna Campbell on Jun 8, 2016 |


Investors generally place their investments on the basis of projected profits. Which companies are most likely to provide excellent returns within a given period of time? Ethical investing, on the other hand, considers more than just profit. With ethical investing, your conscience or morals may significantly influence which stocks you purchase.

What Exactly Does Ethical Investing Mean?

In the simplest terms: you will be choosing to invest in companies that adhere to your personal belief of what is good or, at least, acceptable. For example, you want to invest in manufacturing. Would you prefer to invest in a manufacturing company known for its environmental safety procedures or would you rather invest in one that does not have these precautions in place? Ethical investing leaves you to choose the former option so that you know your money is being used by a company that takes steps to take care of the environment.

Is This Profitable?

The short and simple answer is: Yes. Ethical investing is just as profitable and could provide you with the same rate of income as other companies. This is helped by government credits provided for companies who submit to the green initiative. The United Nations has projects that award companies points for limiting their waste or destroying them rather than releasing them to the atmosphere.

Of course, it is important to note that profits still depend on how much research you are willing to do before investing. Just because a company adheres to ethical standards does not mean it immediately deserves your patronage. Do not invest on ethical aspects alone but, rather, use this as an additional factor for making your investment choice.

For example, investors often look at dividend yields, the economy, and the management of a company before investing. Investing ethically means you will still look onto these factors but will also take into consideration your ethical standards.

How to Invest Ethically

A green company is just one example of ethical investing. Good ethics of a company may actually be seen through various factors or methods. For examples, some company show ethics through their excellent care of their employees. Providing good wages, excellent benefits, and fair working conditions – all these factors may appeal to you and prompt you to make an investment.

Other ethical standards you might find appealing concern the function of the company itself. The corporation may be in the business of producing solar panels or perhaps a group that is devoted towards medicine production. Some companies today are geared towards producing and selling power through natural means such as wind turbines, water turbines, and solar power.

Hence, there is really no standard ethic that a company must follow in order to get your patronage. You are in the position to evaluate and consider using your own ethics, whether the stocks are worth buying.

Benefits of Ethical Investing

There are lots of benefits to ethical investing; starting with the fact that it makes you feel better about yourself. The knowledge that you are part of a group funding a worthwhile company gives you a sense of betterment.

In the long run, socially responsible investing also makes a lot of sense, especially with the growing concern for socially responsible corporations. You will find that soon enough, governments will enact laws that require companies to adhere to certain ethical standards. With you already investing in companies with an excellent reputation, you will find that stock shares may increase in value overnight.

There is also the fact that there is virtually no difference between ethical and non-ethical companies when it comes to profits. Managed correctly and with sufficient support from many governments, you will find that stocks and shares from these companies are every bit as good for future needs.

Finding Companies to Invest In

The good news is that ethical investing is not that hard to do. In fact, there are currently a group of investors who seriously take this activity into consideration when evaluating and placing their investments. You will find that there is an extensive list of companies with an excellent ethical rating. Even better, these companies exist in all portions or levels of the market, no matter what industry or country you can think of. Hence, finding and choosing one is not a problem as long as you do your research. Good luck!