There are many cases where individuals would prefer to invest with a “hands-off” approach such as just choosing a halal ETF or mutual fund. However, I’ve noticed pretty much every one available to me tends to invest in some companies that are very questionable from an ethical point-of-view (many pharmaceuticals, certain companies for their political support/views, companies involved in child labor, environmental controversies, etc). I personally like to avoid investing in such companies, but when it comes to passive investing there are not much options.
I had a few questions in this regard:
1 - Would it be permissible to invest in such companies, or would it be considered assisting in and contributing towards harm?
2 - Is it okay to recommend such investments to others, with the intention that it would be the lesser of the two evils (e.g. if they are not currently investing in Shariah-compliant options)?