The goal of investing is to get out more than you put in. That return is usually measured in pounds, dollars, euros or yen. But investing can also be a means of helping others, preserving the planet for future generations and contributing to human development. Looking beyond a company's financials can mean the difference between lining an executive's pockets and spurring positive change.
Adopting a high-minded outlook while buying stakes in profit-hungry corporations may strike some as an exercise in cognitive dissonance. Public companies are under constant pressure from shareholders to drive down costs and grow their earnings and dividends, which may come at the expense of employees or stem from unethical, or even illegal, behaviour.
There's a long list of unapologetic offenders. McDonald's (US:MCD) and Walmart (US:WMT) are constantly criticised for underpaying their workers and even encouraging them to seek government assistance - effectively passing the tab to taxpayers. Coca-Cola (US: KO) aggressively markets its soft drinks at teenagers and poor and vulnerable populations to foster life-long loyalty. SeaWorld's (US:SEAS) shares have slumped a third since last summer, when a documentary revealed its ill-treatment of its killer whales. Trinity Mirror (TNI) is facing around 50 legal claims after it admitted hacking into people's phones in search of scoops. And environmental disasters such as the Exxon Valdez or BP's (BP) Gulf oil spill have had devastating consequences.