Ethical Investments

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Ethical investments are similar to traditional investments with only one difference. Both traditional and ethical investors pursue the same goal of capital gains, higher income and/or preservation of capital for future needs. "The major difference between traditional investors and ethical investors is that ethical investors do not want their investments going for things that cause harm to the social or physical environments. Instead they want their investments to support needed and life supportive goods and services"(Kingswood Consultants ). In this paper I will explain what ethical investments are, why ethical investments are so significant, what was the past stand on ethical investments, the current stand on ethical investments and…show more content…
"By investing in companies that are doing things in which you improve, you would actually be helping these companies to continue their good work. Similar logic applies to avoiding those companies whose activities you find objectionable. If enough people follow suit, the shares may lose favor and management may be forced to alter its policies. "If our power as consumers were used to the full, every company would have to account for its business practices". (Stuart Kotler ) By investing ethically, one can gently influence companies to improve their ethical record. Like it or not, money makes the world go round. If companies found that unethical behavior caused investors to withdraw their money, it would make them think twice. "In the USA, one in every eight dollars is invested ethically, and this trend is expanding globally". (Asset Financial Management ) The roots of modern ethical investment may be traced to the 1920s. The Methodist Church in North America decided to invest in the stock market, having previously viewed it as a form of gambling. However, they wished to exclude certain types of companies, specifically those involved in alcohol or gambling. The Quakers soon followed, but they were especially keen to avoid weapons manufacture. Public demand for ethical investment vehicles took
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