Ethical investments are those financial investments which are chosen with regard to ethics as well as financial return.
Ethical considerations can be:
- negative (e.g. not investing in companies which sell arms or use child labour)
- or positive (e.g. investing in companies which promote fair trade or build green energy).
Most ethical investors still wish to see a good return on their investment, but some are prepared to sacrifice any financial return in order to support positive business practices or a specific environmental or social outcome.