Combining personal values with financial incentives

ethical

Ethical screening should offer investors assurance that the company in which they are investing is ethically sound, but instead presents complex dilemmas as to what should be deemed ethically acceptable. Ethical funds therefore have a duty to state their policy clearly and enable prospective investors to affiliate their views accordingly

Ethical funds are a popular choice for people with strong concerns about environmental and social issues. Investing ethically can provide the satisfaction that comes from putting personal values into practice, as well as offering the potential for financial return. Ethical funds specify the types of companies in which they will not invest and give investors the opportunity to avoid putting their money into companies whose activities of which they disapprove. The typical exclusions rule out investment in companies that contribute to environmental pollution or are involved in tobacco or al...