Are you a philanthropist or connected to any Non-Governmental Organization? Are you spiritually inclined? If the answer is in the affirmative, you will get to know what Ethical Investing is. In this context, investment is done not with the motive of profiteering only, but for a cause of social good. Many also describe this as SRI-Socially Responsible Investing. While selecting the securities for investment, you go by certain non-financial norms. Return on investment is not the sole criteria. Social, environmental and ethical consequences of the investment are given priority.

Cowton defines it thus: ?Ethical investment may be defined as the exercise of ethical and social criteria in the selection and management of investment portfolios, generally consisting of company shares (stocks). This contrasts with standard depictions of investment decision-making in finance textbooks, which concentrate solely on financial return in the form of dividends and capital gains, and risk..." (Cowton, 1994).

Keep your ears and eyes wide open as you proceed with the job of analyzing and do research on your portfolio. The pages of human history daubed in bloodshed in the name of religion, race and color, economic aggrandizement, terrorism ask the crying question. How to make this Planet Earth heaven-like? From the economic standpoint, the answer is- support all good economic activities; stop supporting all activities that contribute to social ills. You are a part of the society. If the society degenerates morally, you and your family are going to be affected in some way or the other. Your prosperity has no meaning, when the society is engulfed in all sorts of negativities. The shares of the company which you have included in your portfolio may be producing arms for export to repressive regimes. Pesticides those are responsible for environmental decay and destruction! The company may be importing goods from countries where women/child labor is being exploited! And you are the proud shareholder of such companies and you feel joy that the shares are doing well! Does your conscience allow you to invest in companies that produce cancer-causing tobacco products, follow cruel methods of animal testing and pornography that invites the moral doom, especially for the younger generation?

You may be unaware of all such unwanted activities going on in a company whose shares you have included in your portfolio in good faith and without negligence. Once you know the facts, you have a duty to delete all such shares, and perform your duties as a responsible citizen of the country to which you belong. If you can not do positive service for the good of the country, do no do harmful service.

Do not be under the impression that ethical investing is all about poor returns on your investment. No need to cultivate such a grim picture in your mind. The facts related to ethical investments are encouraging. A number of ethical funds and concerns have achieved above-average performances. Protection of environment is the priority issue on the agenda of many countries. The shares of companies engaged in such activities are bound to well

The demand of the 21st century is to curb negativities on all fronts. With the increasing awareness among the public, the shares of the companies of tobacco products are bound to suffer. Relentless but justified adverse publicity against such companies, litigation and huge compensation for the victims of tobacco consumption, and tightening legislation leave no scope for the growth in the share prices. On the contrary, the companies with the ethical approach, those who do fair labor practice, engage in activities like pollution control, create herbal gardens and encourage herbal products, are doing very well, with reasonable assurance of further growth.

Ethical fund managers work with an inspired motive. The confident approach of working for a good cause, gives positive results. Devotion to the people is considered as good as devotion to God. As ethical investing is done with a ?do good? attitude, the investor will hopefully reap good harvest.