Are you searching for ethical companies to invest in? What is an ethical company? Should your ethics be a consideration when investing, or should you chase after profit? Obviously, you will have to answer these questions on your own, but if you are looking for some companies to invest in that are considered ethical, then here is a brief list.
What is an Ethical Company?
There are different criteria of what is considered ethical, and it is based on your own personal beliefs. But here are a few things that you may look for when choosing ethical companies to invest in.
- Environmentally sustainable business practices
- No evidence of corporate corruption
- No businesses dealing in weapons or fossil fuels.
- Businesses that engage in fair trade or fair labor practices
This is obviously not an all-encompassing list, and your own beliefs will have to guide your personal investing choices, but it is a good place to start.
Some Ethical Companies to Consider
Here are a few companies that many believe to be ethical. Do your research and decide if one or more of them might be a good fit for your portfolio.
Ford
You may find it surprising to have an automaker make the list of ethical companies, but Ford has been taking steps to build a more environmentally friendly business and to work with their suppliers to do the same thing.
Their Partnership for A Cleaner Environment (PACE) works with various suppliers to reduce carbon emissions, water consumption, and improve energy use.
Ford is also a member of the Responsible Business Alliance. The goal is to source parts from ethical suppliers.
IBM
International Business Machines has been around since 1911 and employs over 350,000 in over 177 countries.
So, why consider IBM as an ethical company to invest in? IBM is a leader in promoting a diverse workplace. They also have a green initiative to build environmentally friendly products through recycling, reusing, and environmentally responsible sourcing practices.
First Solar
It comes as no surprise that a solar company would make the list. First Solar is an Arizona based alternative energy company whose mission is to research, develop, and construct solar farms to connect to the power grid.
First Solar is dedicated to building an alternative energy source but also to sustainable manufacturing and construction practices.
Final Thoughts
This was a short list of ethical companies that you can consider investing in. There are countless others, and only you can decide which ones align with your values and beliefs. Investing does not have to mean that you are forced to solely focus on profits. It is possible to make money while simultaneously holding true to your values.
Many big banks use your deposits to fund oil and pipelines or exploration, but at Aspiration they are committed to building a greener, more socially conscious world. By putting their customers and conscience first, Aspiration is 100% committed to clean finance and is setting the standard for money management with Clean Finance and only invest in positive change. Aspiration has implemented an initiative where you can feel good about where you are putting your money and take part in making the world a greener place when you use their financial account and debit card.
What ethical companies are you investing in? Share in the comments below.
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Based in the Pittsburgh, PA area, Brian holds full-time employment as a Warehouse Manager for an electronics firm. Brian enjoys wealth building, investing, gardening and the great outdoors. Brian holds a B.A. in Environmental Studies from the University of Pittsburgh and an MBA from Robert Morris University.
