Two methods of moral investing that have gained popularity in recent times are activist and ethical investing. But what exactly are they? How are they different from one another? Let’s find out.
Introducing ethical investing
Ethical investing is sometimes referred to as socially responsible investing. It sees investors purchase shares in companies that are in-keeping with their own morals and priorities. For example, ethical investors often avoid gas and oil corporations or any company with a particularly bad fossil fuel record. What’s more, you might be morally opposed to smoking, so you would naturally look to avoid investing in tobacco companies. In the present day, many investors also avoid Amazon stock for myriad reasons relating to some of their unethical business practices.
Is ethical investing enough to drive change?
Although ethical investing is a good place to start, it’s widely seen as insufficient if we’re to achieve the global changes we need to see. So, supporting climate-conscious companies is a good thing, but it’s not quite enough. Rather, actively taking steps to reform the companies that are polluting the earth is a much more impactful strategy and is where activist investing comes in.
How is activist investing different from ethical investing?
Ethical investing is a passive act that sees you withholding your investments from specific companies. In contrast, activist investing leverages shareholder power within companies to drive real change. Even within the largest and most unethical companies in the world, activist investing has the power to bring about the changes that many of us desire, be it climate-related or to do with working conditions. Tulipshare is a platform that allows investors to get involved with activist investing campaigns that seek justice in some of the biggest companies in the world, including Coca-Cola, Amazon, and Apple.
Tulipshare’s campaigns have sought to bring about changes that will improve the planet, as well as the people that work with some of the world’s most unethical companies. Their recent Apple campaign has led to discussions with the IR team about a fair Right to Repair policy, which will hopefully save consumers money and save the planet from a great deal of waste. If you’re interested in one of Tulipshare’s campaigns, you can create an account and get involved via your dashboard.
Activist investing will have a huge impact on the future of our planet, and if we’re to meet many of the agreed targets that we have set at recent climate summits, we need to continue driving change from within some of the world’s most unethical and irresponsible companies.