Which principle does ethical investing prioritize?

Ethical investing prioritizes the alignment with personal and social values. This approach goes beyond purely financial considerations, focusing on the broader impact of investment decisions on society and the environment. Investors who practice ethical investing seek to support companies and projects that reflect their values, such as sustainability, social justice, or good governance.

By choosing this path, investors aim to ensure that their portfolios not only provide financial returns but also contribute positively to societal issues. This principle emphasizes that financial decisions should be congruent with one’s ethics and beliefs, making it a fundamental aspect of ethical investing.

In contrast, while immediate financial gains, compliance with market regulations, and minimization of investment risks are important aspects of the investment landscape, they do not inherently reflect a commitment to values-based investing. Ethical investors prioritize principles that resonate with their moral or social beliefs rather than focusing solely on quantitative metrics or regulatory compliance.