Introduction
Earthfolio provides an understandable outline through which an outsider can analyze their ethical practices. Any discussion of sustainable corporate practices should adhere to certain business ethics. Sustainability at the administrative level exists due to the following reasons: the top-management is committed to sustainable and ethical ways of conducting business and this commitment is then converted into the company mission, goals, and objectives. In this case, Earthfolio is an ethical company because it does not just focus on business transactions but also on its input or contribution in the foreseeable future (Earthfolio, 2020). In the early 2000s, the company focused on constructing a business entity that would be dedicated to sustainability. The underlying reason for this was to make the right decisions, achieve the impossible while at the same time, profit from the sustainable investment.
Earthportfolio’s Ethical Principles
Additionally, ethics can be evidenced through the number of clients the company has attracted over the years. Earthfolio has been able to garner a client-based from all over the world due to its sustainable ideals (Earthfolio, 2020). From individual consumers to foundations, many clients have joined the course and this points to an ethical mannerism of conducting business. Taking a stand and then getting people to join you and invest in the company's narrative is an act of efficiency. Moreover, the performance and productivity of the company only proved that investing in sustainability would easily motivate investors all over the world to become part and parcel of the objective.
Investing sustainably is more futuristic and significant than ever before. The company committed itself to ensure that it gains the confidence and trust of all is clients and by doing so, it caters to the business needs of its client base and ensures that its sustainable investment objectives are adhered to all through the years. At first, the public thought that it was a branding gimmick and that the company would easily reverse its mannerism. However, the firm proved its competitors wrong as sustainable investment resulted in sustainable economic growth and an upsurge in the company's profit margins (Siddy, 2009). Furthermore, sustainable investing facilitates investment resources to business enterprises whose main objective is fighting for proper use of natural resources, minimizing environmental obliteration, and raise awareness on corporate responsibility within its business boundaries. Earthfolio has been able to manage various funds and at the same time ensure that sustainable responsibility among its shared partners hence earning the trust and confidence of its partners.
Due to the advancement in information technology systems, digitized investment consultative services or automated-robo- advisors have helped the company reach its optimal goal of sustainable investments. For the most part, sustainable businesses tend to reduce pollution, preserve natural resources, and reduce pressure on fossil fuel usage (Escrig et al., 2017). This way, the companies keep the human race safe from pollution and assure the public of their safety while consuming environmentally friendly products.
Generally, ethics pertains to doing well and giving back to the community and even the human race. Placing sustainable investment as the top agenda brings out the ecological, social, and administration. Hence, the company directs funds for sustainable ways of doing business. The sustainable investment demonstrates social responsibility as one main intention is not just making money but also safeguarding the welfare of the planet (Rohde, & Lützkendorf, 2009). This the underlying reason Earthfolio is an ethical company because of its operative sustainable investment business model which tailors business plans of any corporation and builds in sustainable mechanisms and this ensures that all companies can sustainably conduct their business. Consequently, the company can maintain a diversified clientele because every investor is different and the most important thing one can do is having the appropriate combination of sustainable factors. For instance, designing the performance to cater for persistent smart characteristics and the optimization of sustainable funds (Lean, & Nguyen, 2014). In the meantime, the funds have to ensure that each company has a strong managerial system, with fewer commissions and transactional charges. Once a business is in agreement with Earthfolio's sustainable principles, then the company manages all the funds that come under its watch. In other words, building a framework that allows other business ventures to change join the Earthfolio's mission has not only made it a household name but a reliable companion in terms of consultation services and policymaking.
Sustainable investment increases productivity due to the incorporation of advanced high-tech innovation. Promoting policies and regulations which motivate entrepreneurial activities is key in the reduction of the forced labor force, captivity, and even human trafficking. With these benefits considered, the main objective of sustainable investment is attaining productive employment for people from all walks of life for both women and men. Thus, sustainable investment impacts issues from a wider perspective as compared to other forms of business ventures.
In summary, Earthfolio is an ethical company because it has chosen a rare business model- sustainable investment. Sustainability depends on the simple fact that the natural environment needs to be conserved at all times. As the human population grows so is the pressure exerted on resources. Earthfolio has created a business model which channels all of its funds towards the business which want sustainable investment. Similarly, sustainable investment is ethical as it not only safeguards the environment but it is also mindful of the coming future generation which will depend on the dwindling resources left on earth.
References
Earthfolio (2020) https://www.earthfolio.net/how-it-works/how-we-invest/
Escrig-Olmedo, E., Rivera-Lirio, J. M., Muñoz-Torres, M. J., & Fernández-Izquierdo, M. Á. (2017). Integrating multiple ESG investors' preferences into sustainable investment: A fuzzy multicriteria methodological approach. Journal of cleaner production, 162, 1334-1345.
Lean, H. H., & Nguyen, D. K. (2014). Policy uncertainty and performance characteristics of sustainable investments across regions around the global financial crisis. Applied Financial Economics, 24(21), 1367-1373.
Rohde, C., & Lützkendorf, T. (2009). Step-by-step to sustainable property investment products. Journal of Sustainable Real Estate, 1(1), 227-240.
Siddy, D. (2009). Exchanges and sustainable investment. Report prepared for the World Federation of Exchange, Delsus Limited.
