Ethical Investing

While the economic debacle that has caused rampant home foreclosures and job losses for the last few months continues to play out, the priority of the new administration is getting the economy under control. According to the “buy low, sell high” adage, if you’ve managed to stay afloat during these trying months, now might be a good time to start looking over your investment options. As a vegetarian, you’re used to going the extra mile to make sure that your consumer purchases don’t support businesses or industries that harm animals. Now you want to start planning for your fiscal future, and are prepared to put those same efforts into practice as a novice investor. However, if you think being veg in a society that exploits animals is hard, just try keeping your money clean in the complex world of financial investing. The reality is that there simply aren’t enough publicly held vegan companies (i.e., those that don’t engage in animal exploitation of any kind) to comprise a suitably diversified portfolio. Most purely vegan companies are small and privately held, requiring venture capital investments that are typically high-risk. Nearly all publicly held companies that make vegetarian goods also market products made from animals, so giving them money promotes practices that most vegetarians would consider unethical. So what’s a veggie investor to do?

One solution is to consult a professional financial advisor who understands what vegetarians want an investment strategy. Brad Pappas, founder of Rocky Mountain Humane Investing is one such expert, having specialized in “cruelty-free investing” for more than a decade. “I have a lot of experience creating customized portfolios that reflect my clients? compassionate values,” says Pappas. “I believe strongly in never pressuring people to invest in something that neglects their moral stance.” Timothy Smith, president of the Social Investment Forum, the SRI industry’s trade association, urges veggie investors to use the power of shareholder advocacy to improve corporations’ animal husbandry practices. “Though animal welfare is still a relatively minor issue on the shareholder action agenda,” notes Smith, “I’ve seen a number of meaningful changes in company practices in recent years.” While some vegetarians may be uncomfortable with such minor concessions in how animals are treated, they may be necessary to bringing a more compassionate world into being.

Still looking to dip your toe into the somewhat tepid stock market? A good investment for beginners, mutual funds offer instant diversification and require a relatively small minimum financial outlay. The following are some of the most popular SRI mutual fund companies, many of which also offer personalized financial management services.

Calvert Group

Citizens Funds

Domini Social Equity

Dreyfus Corporation

Green Century

New Alternatives Fund

Parnassus Investments

PaxWorld Funds

Portfolio 21