October 19, 2023
Ethical finance is choosing financial companies and products that align with your values. It can include investing in companies that are committed to social and environmental responsibility, banking with institutions that support ethical businesses, and using financial services that are fair and transparent. It began as a movement that empowers people to use their money to create a better world.
There are many reasons to choose ethical finance. For one, it can help you feel good about where your money is going. When you invest in ethical companies, you are supporting businesses that positively impact the world. You are also helping to create a more sustainable and equitable economy.
Ethical finance can also be an excellent way to invest your money more wisely. Studies have shown that ethical investments can outperform traditional investments over the long term. Ethical companies are often more innovative and resilient than their less ethical counterparts.
Get Started With Ethical Finance
Invest in Ethical Funds: Many mutual and exchange-traded funds (ETFs) focus on investing in ethical companies. These funds typically screen out companies involved in controversial industries such as tobacco, gambling, and weapons.
Bank with an ethical bank: Some banks are committed to ethical banking practices. These banks may offer products and services that support sustainable businesses and communities. Very common examples in Nigeria include Lotus, Jaiz and Taj banks.
Use ethical financial services: Many providers offer ethical products and services. For example, you can use ethical credit cards and loans to support businesses aligned with your values.
If you are new to ethical finance, it is meaningful to do your research. Some resources are available to help you learn more about ethical investing and banking. You can also talk to a financial advisor who specialises in ethical finance.
Ethical Finance And Islamic Finance: A Natural Connection
Ethical finance and Islamic finance share many common principles. Both are based on using money to create a more just and equitable world. Islamic finance, in particular, is guided by the principles of Shariah law, which prohibits interest, gambling, and speculation.
One of the key areas where ethical finance and Islamic finance intersect is their focus on social responsibility. Both approaches believe businesses should be accountable to their stakeholders and use their profits to benefit society.
Islamic finance is uniquely positioned to promote inclusive financial solutions, especially in Africa. Islamic finance principles are based on fairness, transparency, and social responsibility. This makes Islamic finance products and services more accessible to low-income and marginalised groups.
For example, Islamic microfinance can provide small loans to entrepreneurs who would otherwise be unable to access traditional financing. Islamic microfinance loans are often structured in a more flexible and affordable than conventional loans. This makes them a more attractive option for small businesses in Africa.
Islamic banks can also promote financial inclusion by offering savings accounts and other financial products designed to meet the needs of low-income customers. Islamic banks can also work with governments and other stakeholders to develop financial literacy programs to help people in Africa make better financial decisions.
Benefits Of Ethical Finance
Support Ethical Businesses: When you invest in ethical companies, you support businesses that positively impact the world. This can include companies committed to social justice, environmental protection, and sustainable practices.
Create a more sustainable economy: Ethical finance can help create a more sustainable economy by investing in businesses committed to environmental protection and social responsibility. This can help to reduce pollution, create jobs, and improve the quality of life for everyone.
Make a difference: Ethical finance can help you make a difference by investing in businesses working to solve some of the world’s biggest problems. For example, you can invest in companies developing renewable energy technologies, reducing poverty, or improving healthcare.
Ethical finance is a significant option if you seek ways to make your money work harder for good. Investing in ethical companies, banking with ethical institutions, and using ethical financial services can positively impact the world while achieving your financial goals.
The 6th African International Conference on Islamic Finance (AICIF) is a valuable opportunity to discuss how Islamic finance can create a more just and equitable financial system in Africa. By promoting ethical and Islamic finance, the conference is helping to build a better future for all Africans.
Become a member of the Ethical Finance world at the 6th AICIF on the 14th and 15th of November 2023 in Abuja. This year’s conference theme is “Towards a Just Transition”.
Register today to Join the pool of financial experts and network with intellectuals as we all shape the future of inclusive, sustainable finance in Africa.
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Join us at the 6th African International Conference on Islamic Finance.
November 14 – 15, 2023
