FTSE4Good Index Series

DEFINITION of 'FTSE4Good Index Series'

Market capitalization weighted indexes maintained by the FTSE group to measure the performance of companies that meet globally recognized corporate responsibility standards. The FTSE4Good Index Series is designed to provide exposure to companies that are managing their social and environmental risks, while also helping ethical investors avoid companies that aren't.

BREAKING DOWN 'FTSE4Good Index Series'

To be included in the FTSE4Good Indexes companies must: support human rights, have good relationships with the various stakeholders, be making progress to become environmentally sustainable, ensure good labor standards not only for their own company but for companies that supply them as well, and fight bribery and corruption.

The following companies are excluded automatically: tobacco companies, manufacturers of nuclear weapon systems, manufacturers of whole weapons systems, companies involved in producing electricity from nuclear power, and businesses involved in the mining or processing of uranium.

RELATED TERMS
  1. Domini 400 Social Index

    A market cap weighted stock index of 400 publicly traded companies ...
  2. Dow Jones EURO STOXX Sustainability ...

    A stock index that measures the financial performance of leading ...
  3. Dow Jones Sustainability World ...

    A global index consisting of the top 10% of the largest stocks ...
  4. Corporate Accountability

    The performance of a publicly traded company in non-financial ...
  5. Corporate Social Responsibility

    Corporate initiative to assess and take responsibility for the ...
  6. Environmental, Social And Governance ...

    A set of standards for a company’s operations that socially ...
Related Articles
  1. Managing Wealth

    Go Green With Socially Responsible Investing

    Find out how morals and ethics can bring you a surprising return.
  2. Investing

    For Companies, Green Is The New Black

    Sustainability and reducing environmental impact are hot corporate objectives. Find out why.
  3. ETFs & Mutual Funds

    Socially Responsible Mutual Funds

    It is possible to avoid unethical investments and still profit from mutual funds. Find out how!
  4. Markets

    Green Bonds: Fixed Returns To Fix The Planet

    Fixed-income investors are no longer left out of the green investing revolution.
  5. ETFs & Mutual Funds

    3 Types Of Indexing For ETF Success

    ETF success relies on the index with which it's paired. Discover three index genres for tracking average market performance.
  6. ETFs & Mutual Funds

    Evaluating Green Equity Investments

    Learn how to find stocks that are both eco-friendly and profitable.
  7. Managing Wealth

    What Does It Mean To Be Green?

    Green investing is the new buzz word for companies and investors. Find out what it means.
  8. Managing Wealth

    The Evolution Of Sinful Investing

    Like beauty, whether something is sinful often depends whom you ask.
  9. ETFs & Mutual Funds

    Going Green With Exchange Traded Funds

    As investors become more environmentally conscious, the exchange traded fund market is following.
  10. Investing

    What's a Market Index?

    A market index combines several stocks to create one aggregate value that’s used to measure a market’s or sector’s performance.
RELATED FAQS
  1. Which socially responsible retailers appeal most to ethical investors?

    Learn why ethical investors have many options in the retail sector, and discover which retail companies are most popular ... Read Answer >>
  2. How have business ethics evolved over time?

    Learn about the evolution of business ethics over times, from the rise of social responsibility in the 1960s to ethics in ... Read Answer >>
  3. What is a "socially responsible" mutual fund?

    As the name suggests, socially responsible mutual funds invest exclusively in socially responsible investments. Securities ... Read Answer >>
  4. Are investments in the drug sector appropriate for ethical investors?

    Explore the question of whether investments in the pharmaceutical industry are appropriate for investors who wish to pursue ... Read Answer >>
  5. How do business ethics differ from industry to industry?

    Learn how business ethics differ based on industry, from energy companies' environmental stewardship to tech firms' respect ... Read Answer >>
  6. How can a socially responsible investor gain exposure to the metals and mining sector?

    Read about social responsibility and the metals and mining sector, and how environmentally and culturally conscious investors ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center