代写 Ethical investments Ethics vs. Profit Maximisation
 Ethical investments
Ethics vs. Profit Maximisation
Corporate goal is to maximize the business’ long-run profits within the limits of the law

Argues total social welfare is optimized if humans were permitted to work toward their own selfish goals

The role of governments and the law is limited solely to ensuring the workings of a free market (by NOT interfering with economic liberty, eliminating collusion among competitors, & promoting accurate information in the marketplace).

Ethics vs. Profit Maximisation (cont’d)
Strength:
Allocation of society’s resources to those units that are most efficient increases overall productivity and maximizes total social utility.

Criticisms:
Doesn’t concern itself with how wealth is allocated in society (e.g. in the USA, 50% of wealth is held by 10% of population).
Market imperfections and a person’s station at birth interfere with his ability to compete.
The ability of laws and market forces to control corporate behaviour is limited

Ethical Investments
Ethical investments are defined as “…a set of (investment) approaches which include social or ethical goals or constraints as well as more conventional financial criteria in decisions over whether to acquire, hold or dispose of a particular investment” (Cowton, 1999, page 60).

Being “ethically and morally responsible while investing” is not a new concept
Early 1900s, the Methodist Church decided to invest in the stock market while avoiding companies involved in alcohol and gambling. However, ... lost its way over time .... Through justification

Ethical investments gained considerable momentum in the last two decades; now a major stream within funds management industry.
Other commonly used terms for ethical investments: “green”, “sustainable”, “socially responsible” and “religious” investments è collectively known as “socially responsible investments” (SRIs).
SRIs contribute 11.3% of total assets under management ($33.3 trillion) in the US funds market alone, with more than one in every nine dollars invested in ethical funds. US Social Investment Forum 2012 Report (www.ussif.org)
代写 Ethical investments Ethics vs. Profit Maximisation