List of ethical stocks on the ASX

Here you will find a sample of ethical companies trading on the ASX. In fact, there are many more profitable, ethical businesses that you can buy a share of on the ASX. These companies have all been on my watch list at one time or another. Most of them are small-cap companies, because I tend to focus on companies that are inefficiently priced from time to time.

More and more people are realising that they can manage their own investments through a Self Managed Superannuation Fund (SMSF). For those who would like to research ethical companies that are earning money, here is a place to start. As an aside, if you are managing your own superannuation, I highly recommend you read The Little Book that Still Beats the Market by Joel Greenblatt before you do anything.

However, please be aware that I certainly do not recommend you buy any or all of the stocks listed here. Further, there are certainly ethical companies not listed here, that you may wish to own (and in fact, I own stocks that are not on this list).

These forty (or so) companies are offered merely to demonstrate that it is quite possible to pick stocks, even after excluding companies that you may perceive to be harmful (after all, everyone has their own ethics).

Companies that do not make money, that damage the environment unnecessarily, that cause human suffering through gambling, or that otherwise cause suffering in society have been left of this list. However, the judgement that I have exercised in putting this list together is completely subjective. I encourage others to think about their own ethics, and invest accordingly.

Ethical Companies on the ASX

1300 Smiles Limited (ASX:ONT)

Audinate (ASX:AD8)
Alcidion (ASX:ALC)
Class (ASX:CL1)
Dicker Data (ASX:DDR)
Fineos (ASX:FCL)
Kip McGrath Education (ASX:KME)
Webjet (ASX:WEB)
Whispir (ASX:WSP)
Australian Ethical Investments Limited (ASX:AEF)
Beacon Lighting Group Limited (ASX:BLX)
Beyond International Limited (ASX:BYI)
Codan Limited (ASX:CDA)
Capitol Health Limited (ASX:CAJ)
Clover Corporation Limited(ASX:CLV)
Cryosite Limited (ASX:CTE)
Energy Action Limited (ASX:EAX)
Fantastic Holdings Limited (ASX: FAN)
Fiducian Portfolio Services (ASX: FID)
Hansen Technologies Limited (ASX:HSN)
Bentham IMF (Australia) Limited (ASX:IMF)
Infigen Energy Stapled (ASX:IFN)
Integrated Research Limited (ASX:IRI)
Invocare Limited (ASX:IVC)
Iress Limited (ASX:IRE)
Macquarie Telecom Group Limited (ASX:MAQ)
Mayne Pharma Group Limited (ASX:MYX)
Medical Developments International Limited (ASX:MVP)
My Net Fone Limited (ASX:MNF)
Netcomm Wireless Limited (ASX:NTC)
NextDC Limited (ASX:NXT)
NIB Holdings (ASX:NHF)
Seek Limited (ASX:SEK)
Rectifier Technologies Limited (ASX:RFT)
Vocus Communications (ASX:VOC)

If you think one of the companies on this list is unethical, tell me why, and I'll remove it if I agree.

Disclosure: Please note this is not a list of companies that are a good investment. It's a list of companies that do no harm to society, in my highly subjective opinion. At one time or another I have owned shares in a number of the companies listed. At any given time I might be buying or selling shares in any of these companies.

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