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Ethical investment

Ethical investment

Ethical investments are those financial investments which are chosen with regard to ethics as well as financial return.

Ethical considerations can be:

  • negative (e.g. not investing in companies which sell arms or use child labour)
  • or positive (e.g. investing in companies which promote fair trade or build green energy).

Most ethical investors still wish to see a good return on their investment, but some are prepared to sacrifice any financial return in order to support positive business practices or a specific environmental or social outcome.