Kembara's Financial Solutions - Responsible Investment
The fundamental goal of investing may still be to increase the amount of money invested over time, but this objective can be supplemented with additional ethical standards to determine which investments are appropriate or inappropriate. Hopefully, the confluence of these elements will lead to more responsible investment decisions that will improve society and the environment. The term "responsible investing" is used to describe this. Therefore, an investor may wish to first evaluate how responsible a company is before agreeing to buy shares. What constitutes responsibility, however, is likely to differ. Due to the potential harm to society or the environment, some investors might desire to steer clear of businesses that they believe are engaging in improper activities. Companies that manufacture tobacco, gambling, alcoholic beverages, or firearms could be appropriate examples. Others might prefer to limit their investments to businesses that have a beneficial influence, like those that generate organic food or renewable energy. Microfinance and applying a gender lens are two particular instances of this kind of responsible investing that are taken into account. Finally, and most importantly, it's feasible that as upholding moral and ethical standards grow more crucial, businesses that already uphold them will prosper and appreciate in value. Therefore, making responsible investments may help you achieve higher investment returns than you otherwise might.
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