The role of ethical investing in modern finance is a topic that has gained significant traction in recent IELTS Writing Task 2 examinations. Based on an analysis of past test papers and current financial trends, this subject is likely to appear with increasing frequency in future tests. Its relevance to global economic shifts and sustainability concerns makes it a prime candidate for assessment. Let’s explore a related question that has appeared in recent IELTS exams:
Some people believe that ethical considerations should play a major role in business and investment decisions, while others argue that profit should be the primary focus. Discuss both views and give your own opinion.
Analyzing the Question
This question requires candidates to:
- Discuss the view that ethical considerations should be a major factor in business and investment decisions
- Discuss the opposing view that profit should be the main focus
- Provide and justify their own opinion on the matter
The question touches on the core debate surrounding role of financial advisors in investment decisions and the broader impact of investment choices on society and the environment.
Sample Essay 1 (Band 8)
In today’s globalized economy, the debate between prioritizing ethics or profits in business and investment decisions has become increasingly prominent. While some advocate for a strong emphasis on ethical considerations, others argue that profitability should remain the primary focus. This essay will examine both perspectives before presenting my own viewpoint.
Proponents of ethical investing argue that businesses have a responsibility to consider the broader impact of their decisions on society and the environment. They contend that by prioritizing ethical considerations, companies can contribute to sustainable development, improve their long-term reputation, and ultimately create more value for stakeholders. For instance, investing in renewable energy technologies may have higher initial costs but can lead to long-term benefits such as reduced environmental impact and improved public perception.
On the other hand, those who prioritize profit argue that the primary purpose of businesses is to generate returns for their shareholders. They maintain that focusing on profitability ensures economic growth, job creation, and overall societal prosperity. This view suggests that by maximizing profits, companies can reinvest in research and development, expand operations, and ultimately contribute more to the economy.
In my opinion, while profitability is undoubtedly crucial for business sustainability, ethical considerations should play a significant role in investment decisions. I believe that these two aspects are not mutually exclusive but can be harmoniously integrated. Companies that successfully balance ethical practices with profitability often experience enhanced brand value, customer loyalty, and long-term financial performance.
Moreover, as global challenges such as climate change and social inequality become more pressing, the influence of stock market on daily life becomes increasingly tied to ethical considerations. Investors and consumers are increasingly favoring companies that demonstrate strong environmental, social, and governance (ESG) practices, indicating that ethical investing can indeed be a path to long-term profitability.
In conclusion, while the profit motive remains a fundamental driver of business and investment decisions, integrating ethical considerations is not only morally sound but also strategically advantageous in the modern financial landscape. A balanced approach that considers both ethical implications and financial returns is likely to yield the most sustainable and beneficial outcomes for businesses, investors, and society at large.
Sample Essay 2 (Band 6)
In the business world, there is a big debate about whether companies should focus more on being ethical or making profits. Some people think ethics should be very important in business decisions, while others believe profit should be the main goal. I will discuss both sides and give my opinion.
People who support ethical business practices say that companies should think about how their actions affect society and the environment. They believe that by being ethical, businesses can help make the world better and also improve their reputation. For example, a company might choose to use environmentally friendly materials even if they cost more money.
On the other hand, people who think profit is most important say that businesses need to make money to survive and grow. They argue that profitable companies can create more jobs and help the economy. These people might say that a company should choose the cheapest materials to keep prices low and make more money.
In my opinion, I think both ethics and profit are important for businesses. Companies need to make money to stay open and pay their workers, but they should also try to be ethical. If a business is too focused on profit and does unethical things, it might lose customers and get a bad reputation. But if it only thinks about being ethical and doesn’t make enough money, it might go out of business.
I believe that businesses can find ways to be ethical and still make profits. For example, a company could sell products that are good for the environment and also popular with customers. This way, they can make money while also doing something positive for the world.
In conclusion, while making profit is necessary for businesses, I think ethical considerations should also play a big role in how companies make decisions. By finding a balance between ethics and profit, businesses can be successful and also contribute positively to society.
Explaining the Scores
Band 8 Essay Analysis:
- Task Response: The essay fully addresses all parts of the task, presenting a well-developed response with relevant, extended and supported ideas.
- Coherence and Cohesion: Ideas are logically organized with clear progression throughout. Paragraphs are well-linked, and cohesive devices are used effectively.
- Lexical Resource: A wide range of vocabulary is used with flexibility and precision. Less common lexical items are used with awareness of style and collocation.
- Grammatical Range and Accuracy: A wide range of structures is used with full flexibility and control. Errors are rare and difficult to spot.
Band 6 Essay Analysis:
- Task Response: The essay addresses all parts of the task, though some parts may be more fully covered than others. The format is appropriate, and the conclusion reflects the position.
- Coherence and Cohesion: Information and ideas are generally arranged coherently, and there is a clear overall progression. Cohesive devices are used effectively, but cohesion within and/or between sentences may be faulty or mechanical.
- Lexical Resource: An adequate range of vocabulary is used for the task. Some attempts at more complex vocabulary are made, though there may be inaccuracies in word choice and collocation.
- Grammatical Range and Accuracy: A mix of simple and complex sentence forms is used. While there are some errors, they do not impede communication.
Key Vocabulary to Remember
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Ethical investing (noun phrase) – /ˈeθɪkəl ɪnˈvestɪŋ/ – The practice of using one’s ethical principles as the main filter for selecting and managing investment portfolios.
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Sustainability (noun) – /səˌsteɪnəˈbɪləti/ – The ability to maintain or support a process continuously over time.
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Stakeholders (noun) – /ˈsteɪkˌhoʊldərz/ – Parties that have an interest in a company and can either affect or be affected by the business.
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Environmental, Social, and Governance (ESG) (noun phrase) – /ɪnˌvaɪrənˈmentl, ˈsoʊʃl, ænd ˈɡʌvərnəns/ – A set of standards for a company’s operations that socially conscious investors use to screen potential investments.
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Profitability (noun) – /ˌprɑfɪtəˈbɪləti/ – The ability of a business to earn a profit.
Conclusion
The role of ethical investing in modern finance is a complex and evolving topic that is likely to remain relevant in IELTS Writing Task 2 examinations. To prepare effectively, consider practicing with similar questions such as:
- “Do you think governments should regulate ethical investing practices? Why or why not?”
- “How might the rise of ethical investing impact traditional business models?”
- “Is it possible for companies to balance profit-making with ethical considerations in today’s competitive market?”
We encourage you to attempt writing an essay on one of these topics and share it in the comments section below. This practice will help reinforce your understanding of the subject and improve your essay writing skills for the IELTS exam.