As you get more involved with ethical investing, there are certain practices you’ll want to take up to ensure that you’re making the best decisions for sustainability. Without the human impact clearly defined, the outlook on your investment decisions may seem bleak, and the company may continue to do more harm than good. Follow a straightforward method of analyzing your investments to determine the human impact.
To avoid the detrimental consequences of company behavior, find an approach to examining your investments to determine that they help humanity. There are specific approaches you can utilize to start understanding the impact of investment decisions. Focus on quantifying your investment decisions down to a single dollar representing human impact.
In this article, we explain how to apply quantifiable methods to humankind investments so that you can determine whether your investments are sustainable. Using a quantifiable method, personal beliefs are put aside, leaving you with an objective overview of the eventual impact on humanity. Read on to learn more about examining investments and their effects on humankind.
Build Your Portfolio For Sustainability
While you may have heard of applying the Golden Rule to your investment decisions, you may have yet to hear about the quantifiable approaches to creating your portfolio. Determining the ethical impact of a company’s actions is challenging. How do you decide which activities are most detrimental to society? Using quantification, human suffering and benefit can be reflected in the U.S. dollar.
Prioritize Impact On Humankind
Essentially, you want to look at the contributions and shortfalls of a company’s efforts as they relate to human impact. If a company is creating economic value but causes immense human suffering, we can determine that it is not a company to invest in because the human impact is significantly detrimental. If we put a dollar on a human life injured or lost, we can compare these numbers to the positive values and determine a ratio of good vs. bad. Quantifying these comparisons allows investors to break through complex issues when humankind appears to be benefiting and suffering simultaneously from a company’s actions. When there is an overwhelming impact (positive or negative), we can determine the next logical step of whether or not to invest.
Weigh The Influence Of Company Contributions
You also want to examine your investments for their sustainable efforts. If a company is contributing to humankind significantly, such as offering free services and providing basic needs to populations in need, you can expect these companies are more likely to fall on your positive list of companies in your portfolio. Avoiding companies that promote or sell toxic and harmful products to society should be avoided because of the adverse effects this has on humankind.
Examine Investments Using Human Impact
When we strive to prioritize human benefit over human suffering, we can make ethical decisions backed by quantifiable representations. Using this investment approach, we can examine our investment opportunities closely and continue to make sound decisions without the influence of opinion falling into the mix.