Is the definition of ethicality subjective or objective?

What is ethical or moral is always based on the personal experience of the individual, so by its very nature, ethicality is subjective. However, there are some universal principles that can be found in almost every culture and religion. And these universal principles can be applied in the world of investing.

In its universal form, ethicality means treating others how you want to be treated. In the world of investing, this means investing in companies that treat the environment and humankind how you would want to treat them. 

Your ethicality definition is subjective to your experiences, and it can be tough to separate your own self-interest with the ethical thing to do, especially when your money is involved. However, in this article, we will examine why being an ethical investor and considering ethicality in your investment strategies is actually in your self-interest and how organizations define ethicality. Continue reading the article below to learn more. 

Determining The Ethicality Definition For Organizations

It’s much easier to categorize ethicality on an individual level than an organizational one. However, if you consider an organization just a group of individuals, then the ethicality definition is much easier to determine. We can determine an organization’s ethicality by evaluating how a company treats their employee, how much pollution its product creates, and how they treat its investors.

Can Being Ethical Help Your Self Interests 

The problem many newcomers have with the ethicality definition in regards to investing is that it puts their money at risk for the sake of being ethical. They may determine that there are other ways to do good without risking their financial security. However, this is misguided thinking because investing in companies that practice sustainability is, by its very nature, a secure long-term investment.

The best way to think about this is on a personal level. The golden rule is an ethical principle that states you should treat people how you want to be treated. It’s a simple philosophy, that, if followed, means we are all treated fairly and justly. If we extend out to the world of business, where we support companies that support humankind and the environment, we all benefit from it in the long run. Meanwhile, companies that produce toxic products or treat their employees unwell are destined to be treated unkindly by investors and society at large. Even if they are turning a profit at the moment, at the first sign of trouble investors, shareholders, customers, and society will not hesitate to abandon the company at the first sign of trouble. 

So, in other words, being ethical is not only the right thing to do, but it’s also in your own self-interest to do it.

Invest In Your Self-Interest and The Greater Good

Hopefully, now you can see that considering ethics in your investment strategy does not put you at a handicap when creating an investment strategy. Sustainability is an essential part of the ethicality definition, and sustainability is a much more safe investment strategy.

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