Ethical Disinvestment

A short while back I commented on ethical investment. Part of any ethical approach to investment must include dumping investments in companies that support unethical actions. Well it looks like the Anglican Communion is encouraging it member churches to do just that by offloading investments in companies involved in the Israeli occupation of Palestine.

Leaving aside for a moment the question of churches hoarding millions of pounds in investments, this kind of ethical disinvestment seems sound and logical to me. I’m not sure it will directly aid the peace process itself, but it can help influence the thinking of managers and boards in companies involved in helping the occupation. Intentional share disinvestment and shareholder lobbying are two levers that the ethical investor needs to take seriously, and two courses of action that are far more likley to effect boardroom discussion than street protests or fashionable bracelets.