May one invest in corporations whose activities may be ethically wanting?
Exemplary ethical conduct is mandated in all spheres of activity including, nay
especially, in our monetary dealings. Furthermore aiding and abetting unethical conduct
of others is akin to actually committing the “crime” oneself. Thus it would appear that
buying stock in corporations that i.e. deal primarily in such industries as tobacco,
gambling or offensive military equipment, or who have discriminatory labor practices or
engage in unfair competition would be proscribed. Though not engaged in ‘unethical’
practices, similar standards would apply to investing in a Jewish controlled company that
operates on Shabbat.
However, Torah law only proscribes aiding and abetting if one’s actions are a necessary
ingredient for the commission of wrongdoing. If the proscribed action would happen
with or without your involvement no biblical law is violated. However rabbinic law is
violated when one publicly associates with wrongdoing – even if one is not responsible
for such behaviour. With this brief (and incomplete) background we can draw several
conclusions. Joining the board or being part of the top tier of executives of a corporation
that engages in unethical practices would be forbidden. Similarly purchasing a
controlling or even influential block of shares as might be the case with mutual and
pension fund managers would violate Jewish ethics. The individual investor would be
enjoined from purchasing stock in an initial public offering but buying small amounts of
shares in the secondary market – would be allowed. In this typical investment one is not
directly helping the corporation as profits (or losses) on these transactions accrue to the
investors themselves. Similarly investing in a mutual fund where one is often not even
aware of what stocks are owned, and are only indirectly investing in the companies
themselves seem to present few moral issues and would be permitted.
While owning a few shares may technically be permitted surely a sensitive person would
not knowingly invest in company that i.e. releases cancer causing agents into the
environment. After all your making money is tied to the companies success at carrying
out its unethical practices. Not all that is permitted is recommended.
Comments can be addressed to info@torahinmotion.org.
