Home » sin stocks » The “Scope Creep” Of Ethical Investing

This is a short article but a really insightful one from Bloomberg that asks questions about ethical investors.

While the financial industry can be (and is pressured to be) at the forefront of ethical investing, this article asks: at what cost?

And we’d also add: whose ethics?

Investors may not want to personally invest in weapons but weapon manufacturers are publicly traded to fund growth so they can create the next generation of weapons to protect nations.

Investors may not want to personally invest in pot but cannabis has palliative benefits for some who are suffering from various diseases.

Investors may not want to personally invest in alcohol, but many are fine with wine… just not “hard liquor” like spirits.

Investors may not want to personally invest in casinos but how many are now just entertainment facilities with a gambling option?

And here’s the irony we rail against all the time at Sin Stocks Report: Investors are quick to judge the obvious sin stocks like alcohol and tobacco and yet people love and invest in companies like Apple, Nike, and General Motors whose products have been linked to tax evasion, sweat shops, and environmental damage. Where’s the outrage there?

Moreover, when does it end? After guns and other sin stocks, what next?

Do yourself a favor and read this Bloomberg article for a great counter-perspective to the ethical investing movement.

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Nothing on this site is a recommendation because, hey, I can't read your mind and I don't know what you have in your portfolio, and I'm not a licensed financial advisor. So never EVER trade without doing your due diligence. If you want more information about this fascinating topic, please check out the Sin Stocks Disclaimer page which basically says the same thing but more emphatically.