Is it ethical to invest in polluting industries?

I'm assuming you're talking about stock in these companies. This won't answer your question, but keep in mind that after IPO the money spent buying and selling stock doesn't go to the company, it goes to the shareholders.

Jeff

 

Welllllllll, I have money invested in Petroleum Development. It, along with the other stock I have, gave me enough money to purchase the Prius straight out.

 

Why out of principle? What on earth is morally wrong with these industries? We can't live without them. Go ahead you have my blessing, hope you make a ton of money!!

 

OK, this is the fourth rewrite ..

There is no lack of investment opportunities with great profit potential that also benefit society and the environment. Taking the time to do due diligence in finding them will also make you a smarter investor.

There is a wide world out there beyond exploitation and destruction of natural resources.

 

You're the only one that can answer that, based on your own personal ethics.

I sold my Gas and electric stock years and years ago because they kept raising rates, claiming they weren't making any money, yet at the same time my dividends kept doubling. I didn't want to be part of a company that out and out lied.

There is plenty of stuff to invest in and make money.

If the ethics bothers you, do a lot of research and choose some solar and battery companies to invest in.

 

Tough question. We all (assuming we're all driving cars here at PriusChat) have given in to some degree to the idea of using petroleum products and mining industry products. So right there is some support of those industries.
Just how far one has to go in denying themselves these industry's products (in your case, I suppose it is financial benefit instead of the actual products) can't be pinned down absolutely. Somewhere along the line someone else will probably say you are not doing enough or worse call you a hypocrit.

Safest answer, I suppose, is to ultimately make the choices you can live with...and yes, I now realize my response probably has been of no help whatsoever.

 

Sometime ago I realized that something i do everyday contributes to the suffering of others. I forgive myself for that within reason and have sought to reduce this suffering to the best of my ability. You have to make the choices that you feel most comfotable with--and we all ultimately do exactly what we want to.

Inform yourself to the best of your ability and then decide. You can change your mind at anytime, but be aware that investing does imply accountablitly of which you can choose to accept or ignore--the latter being more capitalistic.

That's my opinion--bluejay

 

Just a thought

There are a number of Socially and/or Environmentally oriented Mutual Funds. Two that come to mind are Parnasus and Citzens Funds. One can invest in one of these or look at thier holdings and choose from among the stocks that they have already vetted. There is also (somewhere out there in cyberspace) a website that has scored many companies on there social and evironmental practices. Just can't remember the name of the website.

 

In its purest form, capitalism can be summed up in two sentences: Gimme money. Now.

Anything you can do to encourage responsible long-term thinking, particularly through your investments, is highly beneficial.

 

Hello SteveT. Thank you for demonstrating an evolving sense of social responsibility. We have come a long way since the robber baron days. Some consider profit above all else, regardless of the destruction short term profit causes, while others realize they can vote with their checkbooks to encourage more responsiblity toward future generations. Some believe in altruism and some don't. By encouraging fledgling industries with your money you make it possible for them to someday compete with current dinasours. The Prius is an example. As I see it there are a couple of ways to approach investing while being true to one's personal ethics. Like jchu suggests, you can research by looking at the underlying portfolios of socially consious mutual funds, tracking some enticing stocks in those portfolios, and buying accordingly. Another way is to maximize your ROI any way you want, but spend your profits with enlightened choices. Either way, you have demonstrated an important concept by posing your question. I wish you luck no matter which path you take, and I thank you for seeing into the future.

 

Here's an article on SRI funds complete with Morningstar ratings:

http://www.socialfunds.com/news/article.cgi/article1849.html

And here's what appears to be an SRI fund with solid performance:

http://www.socialfunds.com/funds/profile.cgi?sfFundId=372



Disclaimer: I don't own any SRI funds.

 

I hope you are right but I am not sure. Maybe if you take stock of the fact that many are aware of those evils. But I am not sure that the numbers of people who practice what the robber barons practiced have shrunk all that much. Also, I see no Teddy Roosevelt or anyone at the top who will really address those issues with his kind of courage. We do seem to have many lesser types who have courage. You are probably correct, but I am just not sure.

 

http://www.portfolio21.com/

Focuses on sustainability and related issues; take a peek. I had a stimulating discussion with them about the non-inclusion of Toyota.

 

It will probably amaze all of you that i sit on the board of a regional environmental organization. I also chair the investment committee and have been involved in some lengthy discussions on this topic. Did you want Toyota included or not? What was your rationale?

 

It does not amaze me at all. You get involved in areas that may affect your profits.

The same motivations that prompt you to post in this forum. I'd also wager that some of your friends at the enviro org are suitably impressed that you hang out at PriusChat.

 

Prius Chat is our little secret. The reason I am involved has nothing to do with profit.

 

Sure, whatever you say.

 

How would my invovlement with an environmental organization affect profit? I don't understand?

 

If one thing shines through on your posts here, it is that you cannot see past your next monster truck sale to save your soul.

Just my opinion, of course. You will view yourself a bit differently I'd wager.

You bring up an interesting and delicate problem, though. Involving business and Industry in environmentalism is profoundly important. It always carries the risk, however, of the original agenda being corrupted for business' profit motives. The current admin in Washington has made great strides is taking over and remodeling what were social responsibility offices into venues for special interest groups. Sort of an infiltrate and corrupt from within strategy. Similar to christian ideologues joining education boards in order to advance their agenda of doctrine teaching in schools.