Some investment funds have a restricted investment policy which does not allow them to invest in shares of certain types of companies, such as those involved in the production of armaments, tobacco or alcohol.
An investment approach which takes into account considerations other than solely the financial return potential of particular investments. An ethical portfolio might, for example, avoid investing in alcohol or tobacco.
Investments made in companies which are deemed to be responsible corporate citizens. Ethical investments tend to exclude companies involved in tobacco, gambling, arms and some mining operations.
This is investment that takes account of ethical considerations, avoiding certain businesses that are seen as 'unethical', or specifically targeting those that promote positive environmental or social effects. Naturally, there is no universally agreed definition of what is and is not 'ethical'. The term is often used with 'socially responsible investment' and is most commonly used in the financial services or retail market.
Companies that do not violate investor’s moral or ethical values are ethical investments. These companies are not ones that are involved with any irresponsible behaviour like guns, tobacco, or gambling of any kind.
An investment policy which specialises in environmental and socially responsible investment, and is informed by shared commitment to improve the ethics of corporate Australia and promote ecologically sustainable and socially just enterprises through judicious investment. Ethical investment (sometimes referred to as green, socially responsible or conscious investment) comes from the desire to ensure that an investor's investments are working in the same direction as an investor's ethics. For many people this means investing in investments that protect the natural environment while contributing to a just and sustainable human society. Ethical investment has two sides: avoiding unethical investments that damage others or the environment; promoting environmentally and socially responsible investments such as green and sustainable technologies.
See Socially Responsible Investment.
Making investments only in companies which are considered acceptable according to a set of criteria concerning the type of product, environmental issues and political issues..
a growing number of investors put their money into future-oriented companies by selecting companies in terms of ethical, environmental and social criteria.
An investment strategy whereby factors other than the expected financial rate of return are taken into consideration.
Strategy to invest only in companies that make a positive contribution to an ethical issue (or avoid a negative contribution). Examples include tobacco stocks, armaments manufacturers, alcohol producers, gaming companies etc.
making investments based on environmental, social or political criteria rather than solely for financial reasons