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Encyclopedia > Ethical investing

Ethical investing, also known as Socially responsible investing or SRI attempts to ensure that invested funds are not used to violate the investor's most basic moral values or ethical codes. There are a wide variety of means to ensure that invested funds are used ethically, and a wide range of interpretations of what "ethics" mean relative to investing. Socially responsible investing, often abbreviated to SRI, is an umbrella term for a philosophy of investing by both financial and social criteria. ... Fund may refer to Funding, or providing capital. ... Morality is a complex of principles based on cultural, religious, and philosophical concepts and beliefs, by which an individual determines whether his or her actions are right or wrong. ... Ethics is the branch of axiology – one of the four major branches of philosophy, alongside metaphysics, epistemology, and logic – which attempts to understand the nature of morality; to define that which is right from that which is wrong. ...


Exactly what is meant by ethical investing will vary from investor to investor, but it typically refers to the refusal to purchase securities that are issued by organizations that are involved in one or more of the following:

  • Manufacture and sales of weapons or munitions
  • Questionable labour practices
  • Lacks environmental standards

Contrast ethical purchasing Ethical consumerism is the practice of boycotting products which a consumer believes to be associated with unnecessary exploitation or other unethical behaviour. ...



 

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