Religious Studies Ethical investments Religious Studies What is

Religious Studies Ethical investments

Religious Studies What is an investment? • An investment is when you put your money into a managed fund where is can gain interest or profit. • Investments can be low risk such as a bank account or savings account or high risk such as buying and selling shares on the stock market.

Religious Studies Why should you invest? There are different reasons to invest: • for a future purpose • for children • to make the most of savings • to earn profit • for a secure future.

Religious Studies Where can you invest? There are different places that people could invest in • The stock market • Managed funds • Properties at home or abroad • High interest savings accounts • Bank accounts.

Religious Studies What are ethical investments? An ethical investment is when a person chooses to invest in companies that: • operates ethically • provides social benefits • are sensitive to the environment. This is called being socially conscious.

Religious Studies An example • An example of an ethical investment is green investing. • This is where a person chooses to invest in a company that has a positive environmental record, or in a company which actively promotes environmental concern.

Religious Studies What is ethical investing? • Ethical investments are just like any other type of investment except that the company who invests the money for the customer agree not to use the money to fund certain activities or certain behaviour that are believed to be harmful to the environment, to people or to animals and wildlife.

Religious Studies An example • This may mean, for example, that a fund management company will not purchase shares in arms companies or firms that develop harmful pesticides. • Or a bank will not lend money to or facilitate business for companies which have links to pornography, gambling, tobacco or alcohol.

Religious Studies Types of ethical investments The different types of ethical investments available include: • corporate bonds • bank accounts • investment funds • community investors accounts • specialist managed portfolios • charity programmes • fair trade programmes and products.

Religious Studies Which companies provide these services? The following companies are some of the more well known ethical investment companies – there are many others: • Co-operative bank • Legal and General ethical trust • ING direct • Standard Life direct • The Body Shop • The Co-op.