Business Knowledge

How and Why You Should Build an Ethical Investment Portfolio

Growing up, you were probably taught about The Golden Rule or treating others how you want to be treated. As an adult, you’ve likely noticed that this first glimpse at ethics is not always followed. When people do not consciously decide to act in the same conscientious ways, arguments erupt, relationships end, and political disarray ensues. The adverse effects of forgoing to comply with The Golden Rule are not dissimilar to those resulting from selfish investment decisions.

When businesses ignore the influence of their actions on people, society, and the environment, consequences like arguments, chaos, and political disarray also occur; these effects create lasting problems that include issues like air pollution, global warming, illness, and death. Even one business’s efforts to turn a profit is destructive to the environment. When you consider how many businesses partake in selfish practices, it’s easy to see how this issue becomes severe, resulting in a devastating global human impact.

By building an ethical investment portfolio, investors make socially conscious decisions that benefit the world. Businesses that do more harm than good are tossed aside. Read on to learn how and why you should build an ethical investment portfolio.

How To Build An Ethical Investment Portfolio

To build an ethical investment portfolio, you need to consider a company’s impact on society by looking at the amount of good vs. the amount of bad it is doing. You can rely on the U.S. dollar to place values metrically using quantification. In the end, you get a numerical explanation that weighs the costs and benefits of each company’s influence.

In this way, disputes on the importance of various factors are avoided. It takes away the individual perspective and keeps things factual by using numbers to establish insights.

Why Build An Ethical Investing Portfolio

When ethical standards are not implemented, it remains a dog-eat-dog world, and everyone suffers. The main reason an ethical investor chooses to build an ethical investment portfolio is to choose their business investments wisely and in ways that do not contribute to these negative impacts. Each company under consideration is judged based on the benefits vs. the suffering they promote. The companies with more benefit and less destruction are placed into the ethical investment portfolio.

Ethical Portfolios Are Essential For Investors

Ethical investors want to contribute to a greener and healthier world. By choosing their investments wisely, they can do their part to ensure that the human impact of the businesses they work with create more positive than negative outcomes. By thoroughly investigating each of the companies they include in their ethical investment portfolio, they help protect the environment, society, and the world.

Live By The Golden Rule And Reap The Benefits

As concerns regarding global warming, air pollution, and others re-emerge in the mainstream, the need for sustainability grows as businesses, consumers, and individuals become more invested in protecting the environment and future generations. With efforts like ethical investing, everyone can move closer to living by The Golden Rule and reap its benefits.

Join The Discussion