Cruelty Free Money

Keep your money cruelty free..

I was only following orders!

bomb 2

In the world of investment, the generally accepted view is that the decisions made concerning buying and selling shares is done in a moral vacuum. Well, that’s what investment managers want to believe but I am not so sure that this is the case.  In fact, I would like to argue that fund managers can’t get away from the guilt they carry.

Now, I appreciate that my argument requires a bit of lateral thinking. However, it is based on some basic investment principles and the principles of agent/principle.  I’ll start by summarising some basic principles of investment:

  • Individuals invest in a fund, handing their money over to an investment company
  • Investment company appoints a fund manager to run the fund on behalf of those who are investing in the fund.
  • The investment company analysis what companies do, how they operate and whether they look like a good investment
  • Investment manager, on behalf of the customers, chooses to buy shares with the money that is invested.

The key here is that the fund manager KNOWS what companies do and makes a conscious decision to investment money in these companies. It is the fund manager who, on behalf of the individual investors, decides that it is absolutely acceptable to support and benefit from:

  • Child labour
  • Exploitation of women
  • Exploitation of animals
  • Destruction of our environment
  • Exploitation of workers

Need I go on? As far as I am concerned, either fund managers are just buying any old companies without knowing anything about them OR the managers are well aware of what the companies are doing and give these activities their full support and blessing. In other words, fund managers are agreeing with child exploitation, exploitation of women etc etc. Do you want this sort of person looking after your money?

If you have chosen to lead a cruelty free lifestyle, why invest your money with people who don’t share your values? You wouldn’t let someone control what you eat and force you to consume things you don’t agree with, so why hand over your money to someone to investment in a menu of terrible things?

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