Today, people are becoming more aware of companies, corporations, and industries’ crucial role in shaping society. These large businesses’ actions have far-reaching impacts on people and communities, perhaps much more than anyone.
For this reason, customers, shareholders, employees, and the general society expects corporates to have ethical conduct that guides their actions for the betterment of society.
That said, you can play a role as an investor in promoting sustainable business practices with ethical investing.
Ethical investing is a strategy of picking investment opportunities, in other words, public companies, based on personal ethical codes. Sometimes interchanged with socially conscious investing, ethical investing is about financially supporting industries and businesses committed to making a positive social impact while you also get a return on your investment.
However, a company’s ethical standards are relative. What may be ethical to you may not be for somebody else, which is why you must look at every investment you want to make in-depth to ensure it aligns with the impact you want to make.
How Can You Invest Ethically?
Ethical investing is pretty simple if you know what to look for and how to go about it. Generally, you want to:
- Define what is ethical to you
- Scrutinize investments to find those that align with your ethical beliefs
- Start a brokerage account to add ethical investment to your portfolio
Humankind ranks the 100 most ethical companies every year to make things even easier for you. And from that list, here are 6 of the most ethical companies worth putting your investment dollars in:
1. Johnson & Johnson
Johnson & Johnson has long been a household name, being one of the oldest pharmaceutical companies in the country. The giant international corporation specializes in manufacturing medical devices, pharmaceuticals, and consumer goods. It is well known for being behind popular everyday products like Band-Aid bandages, Tylenol, Neutrogena products, and Acuvue contact lenses.
J& J’s reach is far beyond the US, with offices in more than 60 countries and its products sold in 175 countries. More recently, as the world was battling the COVID-19 pandemic, J&J developed its own single-dose vaccine, the third vaccine in the US to be authorized for emergency use. The company’s contribution directly helped America and other parts of the world curb the spread of COVID-19 and, consequently, return to normalcy.
Aside from manufacturing products that better humanity, J&J also has a pharmaceutical arm, Janssen Pharmaceuticals, that researches human diseases and ways to treat them.
2. Alphabet Inc.
Alphabet Inc. currently ranks among the top 5 biggest companies by market capitalization globally. The tech giant is more famously known for owning and running the Google search engine, but what people don’t know is that it is the parent to many other innovations, including YouTube, Gmail, Chrome browser, Google Docs, and Google Maps, to name a few.
It also makes money from various hardware products, including Pixel smartphones and Fitbit smartwatches.
That aside, Alphabet Inc. has single-handedly turned around humanity by providing vital services, including access to the internet and endless information on it, to users across the globe for free. Thanks to Google, individuals, businesses, and students don’t have to pay for internet searches or email communication.
So, as much as the company makes profits through ads, its innovations have and continue to make a positive impact on billions of people’s lives all over the world.
3. Pfizer Inc.
Pfizer Inc. is an American-based multinational pharmaceutical and biotechnology company. The corporation mainly researches and manufactures medicines and vaccines to treat heart disease, pain, inflammation, Leukemia, high cholesterol, and depression, among other conditions.
More recently, Pfizer developed the Pfizer-BioNTech vaccine, the first COVID-19 vaccine approved for emergency use in the US. But long before the pandemic, Pfizer had been pursuing medical research and contributed to many scientific breakthroughs.
Its research, as well as drugs, are aimed at building a healthier planet and human race.
4. Verizon Communications, Inc.
Another company worth looking at if you are searching for ethical investments is Verizon Communications, Inc., a wireless, internet, TV, and phone services provider in the US.
Being the second-largest telecommunications company in the country, just below AT&T, Verizon affects the daily lives of millions of Americans, making communication and access to information easier and more convenient. In fact, Verizon provides the infrastructure for internet access and even operates a couple of free online services.
Aside from its core profitable business, Verizon provides free resources to small businesses as well as a grant program. Plus, the company takes corporate responsibility seriously, currently committing $3 billion to human prosperity and climate protection.
5. Microsoft Corporation
Microsoft is a multinational technology company best known for the Windows OS line, the Microsoft Office suite, Xbox consoles, as well as Internet Explorer, and Edge web browsers. Microsoft’s digital products have allowed individuals, businesses, learning institutions, and even government agencies to thrive and connect.
The company’s core value is utilizing technology to build tools and resources that make a lasting positive impact. In light of that, it has spearheaded numerous innovations, more recently being a key investor in AI technology like ChatGPT AI chatbot.
Microsoft also champions diversity and inclusion as well as corporate social responsibility.
6. Procter & Gamble Company
Procter & Gamble is a giant consumer goods manufacturer based in the US but with reach internationally. It manufactures and sells shampoos, conditioners, male and female blades and razors, toothpaste, toothbrushes, detergents, dish-washing liquids, surface cleaners, air fresheners, and many more. Some of its popular brand names include Tide, Gillette, Old Spice, and oral-B.
As a company that produces fast-moving hygiene and personal care products for millions of people in the US and across the globe, Procter & Gamble has helped fight dozens of infectious diseases and, consequently, extended the life expectancy of children and adults in numerous countries.
Promote Social Responsibility & Make Good Returns by Investing in These Top 100 Most Ethical Companies
As an investor, you have an opportunity to make a difference while still growing your portfolio. These six ethical companies are profitable corporations that also care about positively impacting humanity.
However, you must do further research to narrow down the ones that align most with your ethical values and objectives. This will help ensure that you’re making the best choices for your portfolio.
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