Style Money Guides
Ethical Finance
Do you care what your bank does with your money? Do you worry that your investments may be funding oppressive regimes or that it might paying to clear the rainforests? Then remember, it's your money - so take some responsibility for the way it is used by banking ethically.
Think Ahead
Whether you are an existing customer or whether you are considering opening a new account or investing your cash in stocks and shares, it's not too late to decide what kind of companies you want your money to benefit.
Of course no bank, building society or investment company is completely perfect. Each one will be involved in activities or investments that someone, somewhere, will not be happy with. To find banks or companies that you are happy to invest your cash in, first identify your own concerns. Few companies will meet all of your requirements, so it's worthwhile prioritising to decide which issues concern you most.
Don't Bank On It
Next, ask your current bank about its policies on these issues. Do they invest in oppressive regimes? Does the bank invest in alternative energy resources or fund projects that contribute to rainforest clearance? Most importantly, ask for proof that they really do implement their ethical policy. To check up on their response, check out the findings of the Ethical Investment Research Service, an independent body that investigates corporate behaviour so that you can make informed decisions on your finances.
If the answers you receive are not satisfactory, move banks or consider opening a new account at another one with a better record. You might want to consider the Co-operative Bank, for example, which has clear guidelines on what it will and will not invest in: for example, it will not lend to businesses with links to oppressive regimes or businesses involved in animal testing or intensive farming. Smile also has many of the same policies. Two useful websites include the Ethical Investors Group, who provide specialist financial advice to those who care about the world, and the UK Social Investment Forum, who work with others to promote socially responsible investment. For more information about the different bank accounts that are available, see Banking with Interest.
Whether you are an existing customer or whether you are considering opening a new account or investing your cash in stocks and shares, it's not too late to decide what kind of companies you want your money to benefit.
Of course no bank, building society or investment company is completely perfect. Each one will be involved in activities or investments that someone, somewhere, will not be happy with. To find banks or companies that you are happy to invest your cash in, first identify your own concerns. Few companies will meet all of your requirements, so it's worthwhile prioritising to decide which issues concern you most.
Don't Bank On It
Next, ask your current bank about its policies on these issues. Do they invest in oppressive regimes? Does the bank invest in alternative energy resources or fund projects that contribute to rainforest clearance? Most importantly, ask for proof that they really do implement their ethical policy. To check up on their response, check out the findings of the Ethical Investment Research Service, an independent body that investigates corporate behaviour so that you can make informed decisions on your finances.
If the answers you receive are not satisfactory, move banks or consider opening a new account at another one with a better record. You might want to consider the Co-operative Bank, for example, which has clear guidelines on what it will and will not invest in: for example, it will not lend to businesses with links to oppressive regimes or businesses involved in animal testing or intensive farming. Smile also has many of the same policies. Two useful websites include the Ethical Investors Group, who provide specialist financial advice to those who care about the world, and the UK Social Investment Forum, who work with others to promote socially responsible investment. For more information about the different bank accounts that are available, see Banking with Interest.
