The traditional investor puts his hard earned cash in territories designed to make the best financial return. We consider various factors based on market trends and forecasts as issued by financial and economic experts and analysts identifying areas of growth and taking into consideration those whose operations have demonstrated financial rewards and returns.
Ethical investment does the same thing except it adds benevolence to the consideration factor – by scrutinizing the options and seeing if the operations contribute and advances the improvement and development of a particular person, human rights or welfare group or environmental cause.
The ethical investor determines how much he invests based on whom he sees promises the best outcome for everyone. There are many types of investors, each with different motives and expectations when it comes to their type of return.
Some investors may choose to invest in organisations that support environmental awareness or land and conservation trusts, with their performance expected to come from potential expense balances instead of development in value or a rise in stock prices, yet the investor feels that mostly what they are investing in would be the preservation of nature.
Others may choose to invest in organisations that practice ethical employment practices or those that advance essential human rights, with their returns coming back as tax deductions and knowing that their money is going towards upholding human rights values or helping the underprivileged.
Others may choose to put their funds into military or arms producers with the thought that by helping to build a strong army and equipping them with effective weapons, it strengthens and ensures peace.
Others may not see the benefit of alternative energy as a channel for investment growth, thus choosing organisations that fund research and sustainable extraction of natural resources hoping to give more to bring the rates of fossil fuel down.
Ethical investors use their conscience as their aid when making their investment decision. Whatever type of ethical investor you may be and whatever your motivations are, the consideration factor is uniform across the board: do no harm, and make the world a better place.