Ethical companies are often involved in conservation

Many of us are becoming a lot more conscious about where we put our money, which has got to be a good thing. The more we put our money where our consciences are, the happier we will be and the more companies will try to clean up their images – if not their acts.

How do you know a business is ethical?

An ethical, or socially responsible, company seeks to maximise profits while making a special effort with: 

• Environmental protection 
• Pollution control
• Conservation and recycling
• Safety and security
• Ethical employment

Companies which fail to meet the grade are normally involved in one of the following:

• Nuclear weapons
• Animal exploitation
• Corrupt governments
• Alcohol and tobacco promotion
• Gambling
• Pornography
• Bad employment practices

An increasing amount of private and corporate money is being invested in specially branded unit trusts that shun shareholdings in companies trading in arms, alcohol or tobacco. Others go further and rule out buying shares in companies that are considered to damage the environment or exploit their employees.

Put your money where your conscience is

There is a range of ways to invest ethically. The easiest way is to invest positively - buy shares in companies that live up to your standards. Learn more about buying shares generally in our investing section.

On a simpler (but just as effective) level, you could always change where you shop and encourage friends to do the same. If you don't agree with the policies of one store than shun it (and write to the head of the company to tell them why). If you think another shop should be positively supported, then go there whenever you can. Buying things from a business is a type of investment!

For more in-depth information on how to invest ethically, see this article