Consumption that also promotes a social good has risen in popularity in recent years. In some industries, a clear conception of ethical business behavior has developed. For example, a pretty firm consensus has arisen of what ethical eating looks like. Utilization of free-range animals along with GMO and chemical free crops, often locally sourced, would be among the expectations for an ethical restaurant or grocery. While many food industry participants have adopted these ethical concepts, the investment management industry has so far resisted consistent ethical delimiters.
To bring better definition to ethical investing, what if we defined ethical investing using the established standards of ethical eating? Should investors expect ethical sourcing, presentation, “nutrition,” and citizenship from corporations to which they have contributed capital? JAG Capital Management thinks these are achievable goals for an ethical investor.