Ethical Investment

Topics: Investment, Socially responsible investing, Business ethics Pages: 2 (700 words) Published: May 15, 2012
An Article Review on “Ethical Investment Processes and Outcomes” Introduction
This article was written by Grant Michelson, Nick Wailes, Sandra van der Laan, and Geoff Frost. It was published in Journal of Business Ethics by Springer. This article highlights the key themes in the field and identifies some of the major theoretical and practical challenges facing both scholars and practitioners. Summary

Generally there are two kinds of investors in the market, one who invests considering the pros and cons of society and personal return and the other who seeks only their high return despite of the society’s benefit. Being the member of the society it counts that whether your investment is ethical or unethical and what kind of person do invest in ethical projects, process of ethical investment, does ethical investment matter, does it pay and what kind of future challenges are attached with it. Ethical investment or socially responsible investment is broadly defined as the integration of personal values, social considerations and economic factors into the investment decision. Investors in ethical funds appear to spread their investment across wide range with verities of risk-return profiles. Better performing ethical funds attract the investor who have ethics and also the conventional investors. Persons who are attached to their socially responsible investments and who care their personal values are generally involved in ethical investment. Their motive is to promote social change or to feel good even though the returns are low. Ethical investment process informs actual and potential investors about the involvement of organizations in activities which are seen either as of concern or are attractive in ethical terms. It can be verified by two major ways: Negative screening will look to exclude defined investments depending on the interest area or ethical objective. For example, companies whose business activity include some of alcohol, gambling, uranium mining,...
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