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Ethical Investment

  1. Joakim Sandberg

Published Online: 1 FEB 2013

DOI: 10.1002/9781444367072.wbiee246

The International Encyclopedia of Ethics

How to Cite

Sandberg, J. 2013. Ethical Investment. The International Encyclopedia of Ethics. .

Publication History

  1. Published Online: 1 FEB 2013

Abstract

Ethical investment (also known as social investment, socially responsible investment [SRI], or sustainable investment) typically refers to the practice of integrating putatively ethical, social, or environmental considerations into a financial investment process – for instance, a pension fund's process of deciding what stocks or bonds to buy or sell. Whereas conventional or mainstream investment focuses solely upon financial risk and return, ethical investment thus also includes various nonfinancial goals or constraints in typical investment decisions. This type of investment has grown to be a well-established feature of many stock markets in the past two decades or so. A recurring point of debate, however, is to what extent this phenomenon indeed constitutes a more ethical alternative to conventional types of financial behavior.

Keywords:

  • business ethics;
  • ethics in finance;
  • practical (applied) ethics