I've written a lot over the years about
shopping for human rights. How we buy creates the world in which our global neighbours live, so being mindful in this area is an important means to
love our neighbours.
Perhaps a bigger factor in many of our global neighbours' lives though, is the companies in their neighbourhood. Those companies have a big say in the conditions under which our neighbours work, how polluted their local environment is etc. The larger of those companies are generally owned by people in high-income countries, many of whom don't know the first thing about what they get up to. Most of us in high-income countries invest in aggregated funds (which in turn invest in actual companies) meaning that we generally don't even know the names of the companies we part-own. Through these indirect investments many of us are unwittingly benefiting from some pretty dreadful practices.
Fortunately you can avoid this trap by seeking out investment funds that exclude or include companies based on ethical criteria. A while back I blogged about
Kiwisaver schemes that do this. Martin and I now have other money to invest and have been investigating what options there are outside the Kiwisaver framework. In priority order, we've been looking for:
- funds that only invest in companies which protect the human rights of people throughout their supply chain. At a minimum we are looking for funds that don't invest in companies that use forced or child labour or buy from those who do; ideally we'd like them to invest in companies that pay a living wage and providing a safe working environment;
- funds that preferentially invest in companies that are making a positive difference in the world (social enterprises, companies that practise in sustainable ways etc.);
- funds that invested in companies in lower-income countries where investment capital is hard to find.
Do such funds exist? Yes! We couldn't find any funds that met all three criteria, but there are a number doing the first two :-)