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Paper Topic:

Ethical Investments

ETHICAL INVESTMENTS

Ethical investing entails venturing money into companies which conduct business in areas which do not cause harm to individuals and society Some investors feel that the burden of conducting ethical business rests on the respective companies and cannot shift to the investors . Commonly recognized businesses which are social pariahs for investing are those in the tobacco industry , those which use discriminatory labor practices and operate in areas where human rights are routinely violated . Ethical investing should be a key consideration for investors as it enables fostering human values and

addressing societal concerns

Ethical investing or what is also known as Socially Responsible Investing (SRI ) effectively combines personal values with concerns of society (SRI , Nd . SRI does not necessarily imply that the investor 's natural inclination to make profits on investments is ignored . SRI on the other hand adopts a balanced approach between the investor 's needs and the impact of the investment on society in general thereby ensuring that businesses which cause damage to health of individuals or the environment do not receive public funding

Imagine companies which are manufacturing tobacco products have to run the business primarily on capital raised through internal resources . In all likelihood , these companies will not survive for long periods Similarly companies which are trading diamonds from countries which are scenes of conflict and human rights violations , if deprived of funding would not be able to conduct their business effectively , thereby saving many lives

Ethical investing should be a key consideration for investors as it enables fostering human values and addressing societal concerns . Through ethical investing every individual can contribute to society in his own way and this practice needs to be encouraged across the board . There are enough profits to be made by putting money in companies which are involved in socially responsible businesses , thus there should be no necessity for investing in companies which violate ethical norms

Reference

SRI (Nd (No Date . Introduction to Socially Responsible Investing Accessed on 20 December 2006 at http /www .socialinvest .org /areas /sriguide /default .htm...

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