People are increasingly making strong ethical decisions through Socially Responsible Investing (SRI) by putting money towards shares or programs that help rather than harm the environment and society, while still receiving a competitive return on investment.
Ethical investment considerations and benefits
- how workers should be treated (particularly excluding the use of child labour)
- how an organisation sources it raw materials (for instance fair trade coffee where the growers are guaranteed a fair profit)
- how the natural environment should be cared for (carbon reduction)
- how corporations should treat their shareholders (a fair return)
- the impacts of the organisation’s products (avoiding negative effects such as the effects of tobacco on smokers)
- whether an organisation uses ethical suppliers (an organisation has to source it materials sustainably)
Many of us live by a set of moral and ethical values that defines who we are and what we stand for. It is important for us to give support to people and organisations that have the same values. Also it is damaging for us if we feel that our actions may go against what we believe in. For these reasons many people are now directing their investment to organisations that deliver environmental and social outcomes as well as economic returns.
These investors are placing an increased emphasis on the importance of the environmental, social and economic consequences of their investments but still want their money to provide a good return.
Strong ethical investment decisions (SRI, socially responsible investing) contribute to sustainability by producing a wide range of benefits to the environment, social and economic sectors.
- reduced pollution and efficient use of human waste
- sustainable land use and building practices
- reduced greenhouse gases and ozone depletion
- preservation of endangered eco-systems
- improved animal welfare
- increased human happiness, dignity and education
- improved health and well-being
- improved worker ownership and participation
- better communities through locally-based ventures and infrastructure investment
- improved local economies that alleviate poverty
- focus on quality products and services rather than profit alone
- more appropriate and sustainable technological systems and practices
Safe pair of hands
All Noble Endeavours projects are carried out to meet Australian Department of Foreign Affairs and Trade (DFAT) requirements and are overseen by the Global Development Group, an Australian DFAT-approved non government organisation. (visit the Global Development Group website for more information.)