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June 22, 2024

Investing in Humankind: A Beginners Guide To Ethical Investing

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Ethical investing focuses on promoting sustainability for humanity. Financial factors also make ethical investing an intriguing investment approach for profit-focused investors, but maintaining sustainability is critical to receive significant returns. Getting started with ethical investing begins with a clear understanding of your values as an investor. 

Once you have identified your motivations, you can decide if ethical investing is right for you. It is essential to consider where you fall with your priorities and values: do you favor sustainability, or do you see it as a necessary step to take to secure a massive earnings potential? Beyond your values, the underlying principles of doing no harm or following The Golden Rule are the backbone of ethical investing. 

Investing in companies that provide more benefit than detriment is essential to protect humanity and contribute to a healthier world. Following The Golden Rule allows investors to cut through the noise of bias to do what is necessary for humanity. If you are keen on sustainability for humankind, consider the following beginner’s guide to ethical investing. 

Defining Ethical Investing 

Ethical investing is the practice of making investments that are best for humankind. Making socially responsible investment decisions protects society, the environment, the global economy, and subsets of factors like water and food supply, fair employee treatment, and business longevity. The common belief among ethical investors is that by doing what is best for humankind, investors also reap the benefits as they are also part of the bigger picture.

How To Get Started 

Start by creating an ethical investment portfolio with the help of experienced investment firms. In ethical investing, investors look at the dollars allotted to human benefit and detriment. When you apply the same tool to measuring something, you are using quantification. Guidance is vital, as you are unlikely to have the background in dollarization and quantification that you need to know to start calculating and organizing your potential investments. 

Determining Company Impact On Humankind

Dollars are used for comparison purposes because it is a simple, easy metric that simplifies the process of adding up values and determining the overall human impact easier to accomplish. With help from your investment team, you can start adding up dollars for employee value, customer value, and for investors. Ultimately, you’ll determine a single dollar amount reflective of the company’s overall value to humankind. 

From there, you can start listing your value determinations in your ethical investment portfolio, with those most likely to succeed toward the top of your list. You may assess and reassess as company operations change and make these adjustments to your portfolio to keep things accurate. Your work may even create positive change for humankind as you encourage companies that need to improve by offering suggestions and strategies to help them rank higher. 

Start Your Ethical Investing Journey

To get started, contact a qualified investment team and research companies you’re interested in potentially investing in. Define your values, follow The Golden Rule, and work with firms to start your ethical investing journey. 

Dikki Loona