I have a entirely different viewpoint on this matter.
We as investors, have one job, to create wealth/money. Largest of the wealth creators have been “immoral” one way or the other. ITC and VST Industries comes to mind.
The problem with this approach is, almost every good company has been doing something immoral.
Banks and other financial institutions lend to needy people too, who commit suicide solely for non-repayment. HDFC Bank , HDFC, Kotak etc, who again, have been huge wealth creators.
Even McDonalds’ burgers kill people. We all know about Nestle too.
If we leave out these companies who have obviously got a “virtual moat”, we are limiting our investing choices, especially in a market, where there are very few trustable names.
Most important thing is, as a retail investor, we don’t really know what’s going on behind the curtains.
Take Apple for examples, a huge company which makes premium electronic items. Happy customers, employees, owners and everyone. Then we hear about kid slavery being used by them in countries like China and Congo. Now what? Would be able to sell those massive money-making stock? I doubt it.
On the contrary, companies like ITC, yeah, they sell sin goods, but through their various other verticals (like E-Choupal) and CSR do massive good for the society too.
We need to see both sides of the coin.
In the end, it’s a matter of personal preference of choosing stocks, but it would become double-y hard to beat the index.