If you choose the path of investing ethically, you are very selective with your base acquisitions and capital solely on moral and ethical principles.
However, this selection is what makes your portfolio unique from others. And it’s so unlikely to find another investor with a portfolio that matches your investment strategies simply because your moral principles do not necessarily correspond with the ethical principles of other investors.
The uniqueness of your portfolio reflects what you do and, of course, what you are. Your ethical investing strategies set the standard for your organization and its future endeavors. The ethicality of investing solidifies your reputation in specific markets and demonstrates your goals.
How to Compare Ethical Investments
The ultimate guide to comparing different ethical investments should be based on humankind’s value or the company’s impact on people. Here an investor needs to compare how good the company is doing to people and what terrible things the company is doing to people.
In this way, an investor can put his money into those companies that are doing more good than bad for people. However, it can be argued that no company is doing all good to people; there must be somewhere it is doing wrong. But at least the wrongs should not outdo the good things that the company is doing to people.
Comparison Through Quantification
The use of an equal measure to determine the value of each company is known as quantification. There’re several metrics to come up with the company’s overall impact. They include profit for investors, customers, employees, and societal value.
You can determine the ethicality of investing based on employee value; you should compare how the company treats its employees. It’s no wonder that you might find companies selling their products at comparatively low prices, but it is exploiting their workers.
The Customer’s Value
This metric is solely based on how the company treats its customers; this can be looked at from different perspectives, from the quality of services that the customer care service offers to the efficiency of their products. For instance, how long it takes to receive their products when you order, or whether you receive the actual product that you order.
The Societal Value of the Investment
The ethicality of investing is also determined by its deliberate efforts to benefit society. These efforts can be the environmental conservation efforts of the company, such as proper waste disposal, use of sustainable means of production, and measures to curb emissions. The effect of the company’s products on people’s health is also a crucial factor to consider when it comes to the societal value of the company.
Profit to Its Investors
Of course, no investor would like to invest in opportunities that are not viable. You can determine the profitability of ethical investments by looking at their historical performances. The ethicality of funding is also determined by its plans.
When comparing different ethical investments, you have to determine their ethicality based on metrics such as the company’s societal value, employees’ value solely based on how the company treats its employees, and its customers’ value. You should also determine its profitability to its investors based on its historical performances and plans.