Investing in your business growth is not just about becoming physically larger. It’s all about growing and becoming more popular with the wider population. However, as with many other entities that involve money, there are always going to ethical decisions involved. Here, we’ll discuss what these are and if ethical investing is a feasible strategy for your business.
What are ethical investments?
As the name suggests an ethical investment is an investment decision that is based not on the ROI but ethical or moral principles held by the company. Whereas socially-conscious investment is more about falling into line with somebody else’s idea of what is right or wrong, ethical investment is a lot more personal. This is an investment that you view as beneficial to the world at large.
How to invest ethically
There is no specific route to ethical investment. Generally speaking, ethical investors will avoid investments that could have a negative impact on the environment or things such as gambling or alcohol but that’s not a rule. Ethical investment is all about aligning your business with companies that share your morals. That could be religious, environmental or something else entirely.
Ultimately it comes down to the following:-
Knowing your principles – Draw a line in the sand and refuse to cross it. It can be easy to lapse into bad habits when there is money involved but as long as you have a steadfast guide of where you won’t go and you decide on that at the very beginning then you should be ok.
Choosing your investment path – Once you have your foundational guidelines and principles laid out, figure out where you want your ethical investments to take you. This will involve doing a lot of research into different ethical funds and tolerance thresholds. Don’t jump in without knowing who you’re getting into bed with.
Diversifying – In ethical investments, as in all investments, diversification is a key strategy that should never be ignored.
Is ethical investing a feasible investment strategy?
It can be, for several reasons. For starters, it certainly won’t hurt your PR. Indeed, many businesses have used their ethical investments as part of their marketing strategies. You don’t want to go overboard though as it could look like cynical virtue signalling. It’s also going to make you feel that much better about your business and engender a deeper emotional investment.
Note, however, that it’s rare for a business to invest solely in ethical sources. Generally, it should be used in conjunction with normal investments to increase your overall input towards sustainability. Growing sustainably through ethical investing is certainly possible as long as it’s pitched right and you remain true to the foundations of your business. It’s a delicate balance to find, for sure, but once you find that balance you’ll be a lot happier for it.