| So Moms…let's talk about the stock market and ethics. It seems that now I have another decision to make! It's bad enough that I'm trying to learn the ins and outs of the stock market, but now I find out that this ethics issue doesn't have any concrete answers for me to report.
I have spent an inordinate amount of time trying to understand the ethics of investing, socially responsible investing, and Green investing (a new term for me but defined by Investors Words, as "environmentally correct investing.")
Now, as if it's not bad enough that I need to study business summary sheets, financial summary sheets, and personnel picks, but I also need to know if my companies are polluting our waterways with toxic chemicals?
Unfortunately, the answer for me is…yes. I do need this information. As a parent with a child, I believe in the need for all of us to lend a hand to our communities, to aid in environmental causes, and to be aware of the issues of inequality. These causes fall under the purview of socially, ethically, and Green investing philosophies. And for me, all of these issues do boil down to just that…a philosophy.
Philosophies are very individualized and I believe there is no single right or wrong way to approach this extremely complex issue. The following is my own personal viewpoint on this issue. Please bear in mind that your mileage may vary.
I am a staunch advocate for reusing. I think twice before I throw anything away. With that said, here in the United States, our culture and our schools have done an exceptional job of training all of us to: Reduce, Reuse, Recycle. So much so, that my 7-year-old son has become a Soldier of the Cause. He is constantly catching me negligently throwing things away that could be recycled.
After he lectures me on my shortsightedness and reprimands me for being wasteful, I dutifully save EVERYTHING that he deems as recyclable. And I know, Mothers, that all of you have experienced this with your children, as well.
And, I also know that after our little Soldiers of All That Is Sovereign fall asleep at night, you sneak out to the garbage can and throw most of it away.
We have to! You can only keep so much stuff as recyclable! And we, unfortunately, have to succumb to "under the cover of darkness" disposal system to keep our homes and lives manageable.
I am also painfully aware of our landfill dilemma in this country. If it doesn't compost itself, I try to find another place to dispose of it. But wait…I also have one other confession.
When my son was an infant, I used disposable diapers. I know…they are the worst for our landfills and environment, but I just could not go the cloth diaper route. I tried…I really did. But I just could not make it happen. It was a constant moral struggle.
At one point, when I knew he and I would be going out in public, I would stash some cloth diapers, in case anyone was around when I needed to change him. Oh…shame on me!
It was a difficult time, and potty-trained reduced my anxiety level dramatically.
OK, so back to ethical investing….choosing companies is not an either/or decision. As I research my companies I will look for information on their social responsibility. Similar to my own situation, I am aware of these issues and I am doing my best to rectify them. If I feel that these companies are working towards the goal of social and ethical practices, then they receive my dollars.
As has been the case in the past, when complex issues arise I invariably look to the Motley Fools and their book You have More Than You Think. They have always clarified difficult issues in an easy to understand format. Their book contains a comprehensive discussion of this issue, but I would like to provide you with an excerpt that I believe sums this whole thing up very nicely:
"True ethical investing is done on an individual basis, dear Fool, through buying what you are--buying only what you are."
There are hundreds of resources on the Web that describe this very complex issue. If you are interested in further information, a simple search engine with the words "socially responsible investing" will keep you busy for quite some time. I know I spent over 2 hours reading about these issues.
It was time well spent. It is an important concern for me, but one that I can't loose sleep over. If I purchase stock in a company that I find out later has been remiss in their social responsibility…I will simply sell it and invest elsewhere. Investing in a company is a choice and getting rid of their stock is always an option.
Well, since my son is at school…I'm off to throw away a whole box full of "recyclable" items before he comes home.
Thank you for joining me
Joyce |
