UK Ethical Investment Guide
Ethical, or socially responsible, investment allows individuals, companies and charities to choose investments that reflect their beliefs and principles.
Even if a person does not own shares, they may still hold investments in the stock market. Schemes such as endowment mortgages and pensions can often be based on monetary funds which are invested in shares. These schemes often take little account of the investor’s moral and ethical values, as their primary concern is financial gain.
The first ethical trust in the UK was launched in 1984 in order to provide alternative investment funds for those people who are concerned over the activities of the companies in which their money may otherwise be invested. There are now over 40 ethical funds to choose from.
Ethical Criteria
Positive criteria, for companies in which an ethical fund manager will actively seek to invest, include:
 | Environmental protection |
| Energy conservation and recycling |
| Control over pollution |
| Ethical employment practices |
| Safety and security |
Negative criteria, for companies in which an ethical fund will avoid an investment, include:
| Oppressive regimes |
| Poor employment practices |
| Pornography |
| Gambling |
| Tobacco promotion |
| The arms trade |
| Exploitation of the third world |
| Damage to the environment |
