Investment can be a complex and unnerving field, particularly when considering how many people can become involved in decisions around your money and where it might end up. We’ve found a few helpful tips in how to invest your funds ethically, and how to make sure that it is doing work you can be proud of.
Duration : 2 min to read
A simple but easily overlooked concern of investment is how the diversity of some major corporations can lead to funds ending up anywhere amongst widely varying activities. If there are parts of a company that you personally oppose, or simply find dubious or unappealing, it’s probably best to find a new benefactor with your money. Some companies take time to demonstrate their socially responsible programs whilst continuing other damaging processes – make sure to not get caught up directly financing any dangerous activity by completely avoiding any you disagree with.
Honouring your own personal preferences as well as ethical investment concerns, specifying the exact use of your investment can make a vast difference between money being put to good practical use and money used for other less progressive purposes. Perhaps you’re interested in small, local co-operatives, or maybe your interest and therefore investments can benefit agriculture, water, or rail.
Demand Best Ethical Practice
As an investor you are naturally powerful and can exercise this influence over what your money is spent on. If you want sustainability to be the highest priority of your money, the people putting your investments to work will have a keen interest in giving you what you want. Likewise, investing funds in or for particularly environmentally aware projects is a sure vote for sustainability.
Choose An Ethical Fund
Ethical funds use both positive and negative screening processes to ensure that their investments are protected from ending up with arms manufacturers or damaging corporations, as well as favouring companies involved in industries with low carbon emissions and beneficial, transparent social responsibility. They might have access to more information than individuals outside of the field, and so could be in a position to more ethically invest your money than the average outsider.
Invest In A Kiva Project
2014 marks the tenth anniversary of one of the most catastrophic natural disasters in living memory. CARE International, since the Boxing Day tsunamis across the Indian Ocean, have reached more than 1.3 million people with life-saving emergency assistance with their cumulative raised total of US$185 million. This year alone saw one of CARE’s most successful events ever – the Walk In Her Shoes campaign works to raise both money for and awareness of the women and girls who spend their days walking for water. Personal, transformative, and respectful, Kiva is a micro-financing platform through which individuals around the world can lend money to those with specific aims for the investments. Business people in need of a new product line, students hoping to progress with their education, and farmers keen to acquire new tools are all examples of the great work Kiva can help fund. Repayment plans are in place before you lend, and Kiva makes sure it works with the recipients on the ground with the help of field partners who establish relationships with the borrowers.
Good Money Week, also known as National Ethical Investment Week, runs every October and emphasises the importance of ethical investments. Their website suggests that good money reflects your values, enhances quality of life, safeguards the environment, and protects future generations – in other worth, well worth some consideration here and now.