As an ethical investor, you want to ensure that your money goes to companies whose values align with yours. Investing in sustainable companies can be a great way to not only turn a profit but also have a positive impact on the world. This blog post will discuss what makes an organization ethical and seven ethical companies that understand the importance of sustainability and making a difference in their communities.
What Makes A Company Ethical?
For an organization to be considered ethical, it needs to make decisions and act to show respect for its employees, customers, and the environment. This means implementing policies that promote fairness, honesty, and integrity. Ethical companies should also take responsibility for their actions by communicating openly with all stakeholders affected by their decisions.
They should understand how their practices impact people and the environment to remain accountable for them. Additionally, ethical companies should strive to do no harm – not only internally but externally – recognizing that business practices can harm individuals or adversely affect the world at large. By adhering to these principles and making ethical decisions, ethical companies build an atmosphere of trustworthiness and confidence that can benefit the entire organization in the long run.
1 – Patagonia
This outdoor clothing company is committed to sustainability and protecting our planet. They use 100% organic cotton, recycled wool, and other sustainable materials in their products and are always looking for ways to reduce their environmental impact. The company has also committed a percentage of its sales revenues to environmental organizations worldwide, donating time and resources to help protect public lands.
2 – Allbirds
Allbirds is a footwear company specializing in eco-friendly materials such as wool, eucalyptus tree fiber, natural rubber, and recycled plastic bottles. The company’s mission is “to create better things in a better way,”—and they take it seriously. They have created shoes that require 70% less energy than traditional footwear production methods, and all of their materials are sustainably sourced from renewable sources.
3 – Ben & Jerry’s
Everyone loves Ben & Jerry’s ice cream. But this iconic brand isn’t just about delicious frozen treats —they are also dedicated to social responsibility and sustainability initiatives that benefit people across the globe.
Their commitment includes sourcing Fairtrade-certified ingredients, using organic dairy products whenever possible, reducing climate change emissions by 25%, and much more.
4 – Eileen Fisher
This fashion brand has made it its mission to create stylish clothing while following best practices for sustainability throughout its entire design process—from sourcing fabrics responsibly to shipping packaging materials made from recycled paper or cardboard boxes made from post-consumer waste fibers like old newspapers or magazines.
5 – The Honest Company
This cosmetics and baby care brand was founded on creating safe products without harmful chemicals or synthetic fragrances—and they live up to that promise.
Their entire line of products is free from the following:
- formaldehyde carriers
- artificial fragrances
- mineral oil
- petroleum distillates
They avoid almost anything you would want your skincare or baby care products not to include. And they source their ingredients responsibly too.
6 – Seventh Generation
Seventh Generation offers eco-friendly household cleaning products and personal care items that meet rigorous standards for safety and efficacy while being gentle on the environment (and on your pocketbook). They use plant-derived surfactants whenever possible instead of harsher chemical ones. All their paper packaging is FSC certified. They purchase renewable energy credits, plus much more.
7 – Dr. Bronner’s
Dr. Bronner’s has produced all-natural soaps since 1948 with no animal testing. They use fair trade certified organic coconut oil sourced through small-scale farmers who are paid fair wages.
No GMOs are used in any product formulations with biodegradable packaging options available. Plus, much more besides these sustainable strategies are implemented by Dr. Bronner throughout its operations.
Ethical Companies To Add To Your Sustainable Portfolio
Investing ethically can be tricky, but plenty of great ethical companies prioritize sustainability while still providing quality goods or services at an affordable price point—like those mentioned above. Make sure you do your research before investing.
Hence, you know precisely what kind of business practices each potential investment adheres to before putting your hard-earned money into it—you won’t regret it later when your sustainable portfolio starts bringing returns home for years (and generations) ahead.