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What is ethics? Ethics are moral guidelines which govern good behaviour So behaving ethically is doing what is morally right Behaving ethically in business is widely regarded as good business practice. Ethical principles and standards in business: Define acceptable conduct in business
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What is ethics? Ethics are moral guidelines which govern good behaviour So behaving ethically is doing what is morally rightBehaving ethically in business is widely regarded as good business practice. Ethical principles and standards in business: Define acceptable conduct in business Should underpin how management make decisions
Advantages of Investing • The Feel-Good FactorEthical investing certainly has a large emotional component • Compounding the Effects of Everyday ChoicesIf you already live your life in strict accordance with a particular belief system, ethical investing is a logical addition to that system.
Disadvantages of Investing • Deciding Where to Draw the LineIt can be difficult to find investments that perfectly meet your criteria, which means that you have to decide what's most important for you and where, if anywhere, you're willing to compromise. • Forgoing High Returns from Investments that Don't Meet Your CriteriaWhen you screen out investments that don't meet your environmental, social or governance criteria, you'll inevitably be screening out some high performers. • Overcoming High FeesIf you choose to invest in socially responsible mutual funds, you might have to overcome higher expenses than you would as a conventional investor. • Going Against the TideSocially responsible investing is still a small part of the overall market.