In today’s world it is often easy to remove oneself from where our money is being invested. Entrusting your hard earned cash with banks, pension funds and financial advisers (often without question) is considered the social norm, and it is often felt that as individuals our influence on the economy is minimal at best. However, as the concern of the wider public over the treatment of the environment, animals and people grows, the companies involved in such areas become less viable investment choices. In turn this raises recognition of socially responsible investments, turning them into sound long term investment choices. Investment and individual pressure can make long-term changes that can bring something positive to the areas that have been exploited.
What is ethical investment?
Business Dictionary defines ethical investment (I.E. Socially Responsible Investment -SRI) as an ‘Investment philosophy which attempts to balance the regard for morality of a firm’s activities and regard for return on investment. Ethical investors seek to invest (usually through mutual funds or unit trusts) in firms which make a positive contribution to the quality of environment and quality of life.’
Why does ethical investment exist?
Whether recognised or not the most influential part of modern life is money, and while this is the case (whether we like it or not) animals, humans and the environment will continue to be exploited in the name of profit. Ethical investment’s aim is to grow profits while taking into account and respecting wider social issues and concerns.
On Money Talk this Friday Simon will be joined by Facts & Figures Financial Adviser Harry Masson to discuss Ethical Investment in more detail.
If you would like to learn more tune in from 12pm this coming Friday the 5th on Channel Radio.