Is it the best way to use money with optimal ethics by not purchasing products from businesses with whom you disagree? Well, almost half of the British consumers believe this to the tune of 42%. This is according to new research undertaken by Rathbone Greenbank Investments.
Fund managers, in their approach to assessing buyer preferences, look at positive and negative factors, noting that they may exclude companies that sell tobacco, nuclear power, gaming, pornography, and alcohol.
On the other hand, positive screening of investment practices hones in on those looking to make a difference in the areas of labour rights and equal standards as well as those who want to make good environmental, governance, and social progress a priority, to give some examples. If an investor wishes to make investments in accordance with ethics and sustainability, Rathbone Greenbank Investments says it is important to:
Work to “build a better future,” says the broker as well, which further stated that appropriate investment is more about where you put your money rather than where you do not.
Apply your own criteria to assess areas for possible funds investment such as affordable housing, healthcare, education, renewable energy, and/or into such funds that the best selection of assessment procedures.
Second, if you stay on course as to your own financial plan, you can accomplish that which you value. To that end, those businesses in which you believe have ethics in line with yours and are sound enterprises will probably be a great smart money investment in the long run.
One company Rathbone Greenbank has used as an example is the Impax Environmental Markets Fund, which only places monies in forward-looking companies as evidenced by what they do in categories like: sustainable food, energy efficiency, waste, water, and alternative energy. They, along with an alternative energy company, Johnson Matthey and a packaging company called DS Smith are other companies to consider.
Rathbone Greenbank also points out, on the other side of the coin, GlaxoSmithKline’s allegations of bribery in China, along with consequences of the Volkswagen emissions debacle both came from what Rathbone Greenbank terms “weak corporate governance.”
It is of critical importance that that you use your Shareholder Rights because making investments with your own ethics in mind can greatly change the direction of a corporation(s). As a shareholder, you can attend annual meetings and vote according to your beliefs, to direct the company, help to influence executive pay and how environmental or social tracking happens. Get involved!
Rathbone Greenbank recommends a site called Share Action AGM army as a great site on which get educated and find out about your rights as a shareholder.
While the term, “powerful force for good” may be overutilized, but the 2015 Modern Slavery Act requires the “transparency in supply chains” which mandates large businesses to take action to prevent modern slavery and report on it.
It is important for people to monitor that their manager for their investments is behaving in a manner you consider to be responsible and works with any concerns that work on responsibility enhancements, e.g., UN-supported “principals for ethical investment.”