How Do You Practice Ethical Stock Market Investing?
Ethical stock market investing, also called “socially responsible” investing, means investing in companies and funds that support ethical policies. The extent of ethical investing ranges from simply investing in companies that don’t harm people or the environment to investing in those that provide products and services that help others. Get written reports about where your investments go when you have a mutual or retirement fund. Get a copy of the prospectus to see what the policies are. Ask for details from your financial advisor. Check out investment details even if the fund is billed as “green” or ethical. Research all the companies in which you invest. Generally, weapon manufacturers, tobacco companies and companies well-known for exploiting their employees or the environment are generally considered unethical. Other companies may engage in unethical practices that are more difficult to spot on the surface. Evaluate the services or products that a company offers. Don’t invest in a