Five Steps Towards Your Own Ethical Policy 

1. Check the current position of your charity
   Establish a list of any activities, (arms sales, tobacco production, for example) that conflict with your charity's objectives. Check that none of your donations, support and work are being damaged by current investments. And check your Trust Deed - does it say anything about socially responsible investment? Existing deeds can be changed; contact the Charity Commission and seek legal advice about doing this.
   
   
2. Consider the best ways to build an ethical policy for your charity
   You don't have to start with an all-or-nothing policy. It might be appropriate for your organisation to start with a limited but well-defined list of objectives from which a policy could be built. Look at the policies drawn up by similar organisations and establish what would be best for yours.
   
   
3. Canvass the views of donors, beneficiaries, staff and other stakeholders
   Your supporters and beneficiaries are stakeholders. Their views should be taken into account. Any socially responsible investment strategy will have to be written down and approved. If you decide to go ahead, think carefully about whether you have the time and resources to see it through. You may need a management mechanism, like a sub-committee, to regularly review the ethical aspects of your investments.
   
   
4. Seek expert advice on finance, law and management
   ► Finance. Your existing fund manager may have experience of socially responsible investment. If not it may be worthwhile finding one that would be willing to help you put your policy into effect.
   ► Law. There are several statutory duties that a charity trustee must adhere to when investing charitable funds. The Charity Commission outlines your legal requirements in their pamphlet, CC14 - Investment of Charitable Funds: Basic Principles. In addition to this it is important to seek legal advice.
   ► Management. Your organisation may benefit from help in thinking through the foundation and scope of your policy and the best way to practically implement and maintain it.
   
   
5. If you have an existing policy, is it being properly monitored?
   It is all very well establishing a socially responsible investment policy, but it will be rendered useless if information is not kept up-to-date. And there should be a way of getting information about the actual performance of companies, other than relying solely on those companies. Other sources could include official databases, campaign groups, and independent research bodies like EIRIS.