Funds that invest in companies that are environmentally friendly or are not connected with the tobacco, alcohol or arms industries.
Investments that are made in companies that make a postive contribution to the world and are kind to the environment. Most ethical investments are made through a managed investment fund such as a unit trust or pension fund, as it is difficult for an individual investor to judge whether a particular company is ethical or not.
Shares or similar investments (for example, holdings in unit trusts) in companies supposed to conform to a particular set of moral or ethical principles. Different ethical values have led to a proliferation of funds of this nature with different principles & for example, some will avoid investing in arms manufacture, and others will avoid tobacco companies. There is ongoing debate as to whether the following of such principles adversely affects the investment performance of ethical funds.
Investing in companies that are thought to be more socially responsible who operate ethically and are sensitive to the environment. For example, an ethical fund may avoid investing in tobacco companies or those that use cheap labour in developing countries.
Investments, which involve the consideration of ethics. An ethical investment might exclude certain sectors, eg. alcohol, tobacco, arms.
An attempt to give rabid capitalism a conscience. They are usually mutual funds (unit trusts, open-ended investment companies or investment trusts) that invest in companies that are kind to the environment, or that don't have anything to do with tobacco, alcohol, or the arms trade. We all have differing views on what is and isn't ethical, so it is important to look at the fund's objectives before you invest. A fund might invest in solar energy companies but also biotech companies that carry out fiendish experiments on fluffy bunnies.
"Ethical investment" is the term given to investment in companies which make a positive contribution to the world rather than to companies which harm the world, its people and wildlife. For example, someone may avoid investing in a company because it produces alcohol or is thought to exploit labour from poor countries.
