How to Invest Ethically
Ethical investing means investing in companies that are making a neutral impact on the world. Ethical investing is the most important part of investing because the money you invest is making an impact. Positive or negative, it depends on the company. The only way you can decide whether or not a company is ethical is through research.
This is my logic for why investing ethically is so important: The reason companies become publicly traded is to earn money to grow their company, so if you invest in a company you are helping a company grow. If you’re investing in a bad company that is making a negative impact on the world, the negative impact goes farther than just the money you invested. You are helping grow a company that is making a negative impact on the world. If your investment grows, then so is the company’s negative impact, assuming the company didn’t go in a different direction.
There is only one way to make sure you don’t invest unethically: research. When you’re investing in a company, look up the company online (use a trusted source) and take a look at the facts about the company. Don’t trust individual opinions, only the facts. Don’t trust what the company says either, because although they can be convincing, why wouldn’t a bad company try to cover up its actions.
Investing means putting your money to work. You can make money by putting your money to work, or you can make a positive impact on the world by investing in certain ETFs. There are some ETFs called social ETFs that invest in companies that make a positive impact on the world. I would recommend looking at the iShares MSCI KLD 400 Social ETF (ticker symbol is DSI).
Another option is to use Kiva. Kiva is a nonprofit that connects you with borrowers from around the world. The borrowers use the money to support their family, start a business, or improve their living conditions. Check it out at kiva.org.