Military issues
The issue
Many people share the fundamental conviction that because the taking of human life is wrong, warfare is wrong too. Some take this to mean that the use of military force is unacceptable either for defensive or, more commonly, for offensive purposes.
Others disapprove of what they regard as the harmful diversion of government funds from social spending to unproductive and destructive military programmes, both in the developed and the developing worlds.
The proliferation of weapons in poor countries and areas of political instability or conflict is another area of concern. In recent years there has been considerable public outcry over landmines and over arms exports to oppressive regimes.
Its relevance for charities
This issue is likely to be of particular interest to social and religious groups which campaign for arms reduction, or object to arms trading on moral grounds. Other charities may have more specific concerns relating to the sale of specific military products (e.g. landmines or nuclear weapons systems) or exports to oppressive regimes.
Investment in arms-exporting companies by charities has been a focus for some campaigning groups. This may make the issue of relevance to any charity concerned about potential risks to their reputation.
Incorporating the issue into investments
It is possible to screen out companies involved in military production or sale. The exact criteria used for negative screens can vary. Considerations include:
- the nature of products or services sold to the military (whether this includes civilian products or services, such as non combat clothing, accommodation and office facilities)
- whether the company's products or services constitute all or part of a weapons system or a nuclear weapons system
- what international military sales activities the company is involved in
- the proportion of turnover received from military sales
It may be possible to engage with companies on military issues.
Several common investment funds and other pooled investment funds have criteria in relation to military sales. The Database of funds and fund managers gives some examples.
