Canadian investors have started looking beyond the bottom line on their investments to the ethics and impact of the underlying companies that drive their returns. Many Canadians have implemented responsible investing plans that mirror their personal ethical or religious values. Halal Investing is a subset of Socially Responsible and Ethical Investing based on investments that adhere to Islamic principles.
Halal Investing and Socially Responsible Investing (SRI) both look deep into the companies held in a portfolio or a fund, to evaluate their social, political or environmental impact. While most people associate this type of discipline with environmental concerns, a responsible investor may avoid companies which do business in countries with questionable human rights records, or have corporate governance policies that are not in line with the investor’s morals. Companies that produce certain products may also be rejected. Addictive products and services, such as tobacco, alcohol, or gambling are eliminated.