Definitions
Ethical Investing ties our moral principles and social responsibility into financial decision-making. This investment approach emphasizes selecting investments based on a variety of factors such as environmental sustainability, social equity, and strong corporate governance, commonly referred to as ESG criteria. Rather than purely maximizing financial returns, ethical investing attempts to balance profitability with positive societal and environmental impact.
The Frohlich Social Enterprise Fund (FSEF) embodies this approach through its portfolio of 40 socially responsible stocks, designed to demonstrate that ethical investing can be both ethically and financially viable. By emphasizing ESG factors, this financial strategy shows how investors can align their values with their financial goals, contributing to a more sustainable and equitable economy.
Social Entrepreneurship merges business with a commitment to addressing societal and environmental challenges, prioritizing long-term sustainability over profit maximization. This approach applies to ventures that tackle issues like inequality, environmental degradation, and community development through ethical sourcing, production, and waste management. These businesses however, are not to be confused with non-profits, as social enterprises balance their commitment to societal goals with their dedication towards profit. Social entrepreneurship aligns with the principles of true sustainability, focusing on creating lasting solutions to economic and social problems rather than relying on superficial rhetoric or "greenwashing." The Frohlich Social Enterprise Fund aims to promote these ideals by combining traditional investment strategies with a dedication to socially responsible investing.