Buying stocks is not wrong and never will be wrong. There’s nothing wrong about buying shares in an unethical company, it doesn’t provide them any money, it just pushes the stock price up slightly.
investment company should have been looking at business practices and not solely stock performance.
Investment companies should merely look at the strategy of the fund. If the fund’s goal is to match a benchmark index (e.g. S&P 500), it should only look at market cap. In most cases, the practices of the company are irrelevant, that’s why you’re buying a fund.
If you want, you can buy an ESG fund, which buy companies with a high enough ESG score. I personally think those aren’t the way to go, I think you’ll have far more impact by investing for return and buying products from ethical companies with the proceeds, assuming that ESG funds trail the overall market.
So I reject the notion of “ethical investing” and instead promote ethical consumerism.