Ethical investing is no longer a niche concept in 2025 — it’s a defining factor in how Americans approach their financial strategies.
With a deeper understanding of the importance of aligning investments with personal values and ethics rather than focusing solely on financial performance, more Americans are prioritizing investments that reflect their principles.
Moneywise surveyed 507 American investors to uncover how ethical concerns and corporate responsibility shape their decisions. From boycotting unethical brands to accepting lower short-term returns to support socially responsible investments, Americans are making one thing clear: profit alone isn’t enough anymore.
Explore the results and discover how Americans are reshaping the future of ethical investing.
Key takeaways
- 2/3 of Americans factor ethics into their investment decisions.
- 66% of Americans would divest from companies with poor ethics.
- 47.5% of Gen Z have boycotted brands over social or political issues, with 52.5% of millennials reporting similar behavior.
- 55% of Americans are willing to accept lower returns in the short term (1–2 years) to support ethical investments.
2 out of 3 Americans factor ethics into their investment decisions
A noteworthy 67% of American respondents consider ethical factors when making investment decisions, with 21% prioritizing ethics as a primary focus and 47% sometimes factoring them in.
This highlights the growing importance of companies aligning with ethical principles, such as environmental sustainability, diversity and inclusion and social responsibility. The trend reflects a societal shift toward valuing long-term impact over short-term profits.
66% of Americans would divest from companies with poor ethics
Two-thirds of respondents would consider divesting from companies that fail to meet ethical standards, including labor rights violations, environmental negligence and discriminatory practices. Among them, 22% stated they would definitely divest, while 44% indicated they probably would, demonstrating a strong commitment to socially responsible investing.
Companies that fail to meet expectations risk losing ethical investors and damaging their reputation, emphasizing the importance of aligning business practices with social responsibility.
Volkswagen's emissions scandal serves as a stark warning. Their use of illegal software to cheat on emissions tests triggered an investor backlash, leading to billions in fines1 and a dramatic stock decline2. This case underscores how unethical actions can destroy financial value and shatter investor confidence.
A majority are willing to sacrifice returns for ethical causes
Fifty-five percent of Americans surveyed are willing to accept lower returns in the short term (1–2 years) to support socially responsible investments. Additionally, 24% said they would commit to waiting three to five years, demonstrating a strong dedication to integrating environmental and social responsibility into their financial decisions.
By age group, 47.5% of Gen Z (ages 18-29) are willing to accept lower returns for one to two years, while 45.8% of boomers (ages 60+) are open to accepting lower returns for three to five years. This highlights a generational difference, with younger respondents more likely to prioritize short-term impact and older generations more inclined toward longer-term commitment.
This trend highlights a growing movement where investors are prioritizing ethical investments that align with their values while also seeking low-risk investing strategies that balance return and social responsibility.
Gen Z and millennials take the lead in ethical consumerism and investing
Gen Z and millennials are driving the movement to hold brands accountable for their ethical practices. A strong 47.5% of Gen Z (18-29) have boycotted brands over social or political issues, and millennials go a step further, with 52.5% reporting the same behavior. These generations are highly attuned to corporate social responsibility and are using their purchasing power to make a statement.
Compared to older generations, Gen Z and millennials lead the way. In Gen X (45-60), 30.9% have boycotted brands multiple times, and 47.4% have done so at least once. In the boomer generation (60+), 31.4% have boycotted multiple times, and 50.6% boycotted at least once. These figures highlight the clear gap between younger and older generations in consistent action.
This trend aligns with the rise of young investors in capital markets. The World Economic Forum reports3 that 70% of retail investors globally are under 45.
Women favor values-based investing, while men prioritize financial performance
Among male respondents, 52.5% prioritized financial performance, compared to 39% focusing on environmental impact and 36.8% emphasizing social equality.
Female respondents showed different priorities, with 43.2% prioritizing social equality and 28.3% focusing on community engagement. Forty-three percent considered financial performance, reflecting a broader values-driven approach to investing.
A YouGov poll4 supports this trend, finding men are twice as likely to see investing as their top financial priority, while women (78%) are more likely than men (58%) to prioritize saving.
Women tend to invest more discerningly, often choosing ethical investment funds that align with their social values and contribute to broader community goals.
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Methodology
The survey was conducted by SurveyMonkey Audience for Moneywise. The survey was fielded between December 20, 2024, and December 21, 2024. The results are based on 507 completed surveys. In order to qualify, respondents were screened to be residents of the United States, over 18 years of age and owning a home. Data is unweighted, and the margin of error is approximately +/-2% for the overall sample with a 95% confidence level.
The Moneywise Editorial Team is a group of passionate financial experts, seasoned journalists, and content creators who are deeply committed to providing unbiased, relevant, and accurate financial information. With years of combined industry experience, our team is dedicated to maintaining the highest journalistic standards and delivering informative and engaging content. From personal finance and investing to retirement planning and business finance, we cover a broad range of topics to suit the financial needs of our diverse readership. You can trust the Moneywise Editorial Team to empower you with the knowledge and tools necessary to make wise financial decisions.
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