Although people have contrasting viewpoints on the importance of various ethical issues, there are specific, overlapping principles that can usually be agreed upon. The most consistently agreed-upon concept is to treat others the way you want to be treated; this is the Golden Rule to do no harm. Since this concept is largely accepted, it is frequently applied by investors contemplating their investment choices. Portfolio management combines measurable research efforts and qualitative approaches that consider the companies‘ behaviors, attitudes, and outcomes under review. Investors should look at both frameworks and make decisions based on their findings. Using a combined approach to measure the positive impact on human life to human suffering offers a comprehensive understanding of present issues and whether investing is the right decision. Managing an ethical investment portfolio is an ongoing task. As an ethical investor, you are responsible for reviewing and updating your portfolio as circumstances change. Ideally, you’ll have a list of companies ranked from most to least committed to sustainable behaviors and operations. To learn more about the ins and outs of ethical portfolio management, read on for a brief overview.
Get Familiar With Reliable Research For Ethical Portfolio Management
Understanding how to conduct ethical portfolio management takes practice and can be accomplished with greater efficiency by getting familiar with the approaches experienced investors use for monitoring their investment decisions and future potential investments. Reach out to experienced firms with the expertise you need to quantify the degree of a company’s positive impact on human suffering. This way, you can learn how to best judge your investment considerations and maintain an ethical portfolio management system. Using approaches such as quantitative research, you can determine to what degree human impact is influenced and harmed by a company’s actions. The companies contributing the least harm and the most positive human impact should be at the top of your list. Depending on the severity, those with negligible impact and the most harm should be at the bottom or removed altogether.
Review Company Behaviors
Comparing essential issues such as lives lost to lives saved can help investors understand the significant human impact that a company is contributing to society. A simple way to rank companies’ sustainability efforts is to consider their behaviors. You might consider how much of their behaviors positively impact people and their basic needs., i.e., (are companies contributing to food and water distribution, providing access to life-saving drugs, etc.). These actions are some of the most influential things a business can do to positively impact human life. Companies that showcase more of this while reducing harm should be at the top of your list for ethical portfolio management.
Make Adjustments As Needed
As you get more familiar with managing your portfolio, consider the idea of informing companies that need improvement of what they can do to rank higher in your portfolio for future investment potential. Achieving ethical portfolio management is about monitoring the human impact on human suffering and making adjustments as these circumstances change.