Ethical, socially responsible, or 'green' investing involves choosing stocks or managed funds that are aligned with your ethics, religious persuasion, environmental concerns and more. It's investing with a concern for something other than sheer profit.

Socially responsible investors hope to build up wealth and make the world a better place. Whether that's saying "No" to weapons, uranium mining, gambling and tobacco, or seeking out companies that are effecting change in a positive way, profiting from principle is a cause that an increasing number of Aussie investors embrace.
 
Scores of Australians are deeply concerned about climate change and the effects of greenhouse gas emissions. The biggest hurdle for the ethical investing industry is convincing them to act on those concerns.

One of the biggest stumbling blocks to socially responsible investing is persuading people that they will not lose money while satisfying their conscience. 

There is also a broad spectrum of opinion about what exactly constitutes an ethical investment. Some fund managers buy shares in line with religious values, avoiding gambling, tobacco and alcohol stocks, for example. Some people want to avoid stocks that commit cruelty to animals.