Voting with your money - part I: Wal-Mart

No readers have pointed this out yet, but it strikes me that I started this blog with lofty ideals of changing the world, but then since then I've largely talked about investing (with the occasional diversion into the world of personal transport).

So what does investing have to do with changing the world for the better?

It's about voting with your money.

This is a concept I've been attempting to enact in my personal life for some years. Basically, I try not to give my money to people or corporations that I think are actively making the world worse.

I stopped going to McDonald's back when they were still using styrofoam containers for everything. When they moved to paper and cardboard I relented a bit, and I very occassionally go there now. There are times when you're hungry and there's nothing so fast and convenient as a McDonald's

Similarly, I didn't go to Wal-Mart for a long time, but now that Wal-Mart is becoming more environmentally friendly I've begun to shop there again, on occasion.

I'm known by some to have an anti-corporate stance, but that's largely because I see many corporations as doing more harm than good. When profit is their only goal then they are capable of doing a lot of damage in the process of realizing that goal.

Corporations have huge power to effect change. And often it's not a change for the better.

But if it is a change for the better, then that's very cool. Because - again - corporations have huge power to effect change.

At the end of the day, though, profit remains their main concern.

Amazingly enough, Wal-Mart appears to be not just greenwashing their corporate image (although I'm sure they don't mind the makeover), but they seem to be realizing some of the economic advantages of going green.

The link above mentions one area where Wal-Mart's behavior is not getting any greener, but it's an area where most retailers' behavior is not getting any greener, so I don't think it's fair to single out Wal-Mart for criticism.

The area in question? Bottled water.

Bottled water is intrinsically bad for the environment - really, any drink in a plastic bottle (that's likely to be thrown away instead of recycled) is bad for the environment. But retailers are going to keep selling it, because people will still buy it.

Really, all the retailers are just going with the flow on this one. The market currently dictates that they need to stock and sell bottled water.

But we are the market.

Here's another thing we can do to make a difference, then. Not only can where we shop make a difference. What we buy can make a difference. Most importantly, what we DON'T buy can make a difference.

We are the market. We dictate that stores need to stock and sell bottled water. And we can change this. We can stop buying it.

If people don't buy it, eventually they'll stop selling it.

This is intended as just one example. What I'm trying to say is this: How we spend our money (0r how we don't) is important, and it makes a difference.

What does this have to do with investing? Well, the same principle applies when buying stock.

Specifically, this same principle is involved in my decision to focus on cleantech stocks, and in my decision not to invest yet in Wind Power, even though every indication is that Wind Power is going to be huge, AND Wind Power is great for the environment.

There are some other factors in play.

Look forward to "Voting with your money - part II: Wind Power" for a full explanation.