Ethical Investing Within the Porn Site Industry

• 21 Jun, 2024
• Adult Site Broker

As an adult business owner, looking for funding can be tricky, with many VCs and angel investors actively choosing to avoid the adult industry altogether due to societal pressures and the risks that come with the industry. However, as society’s views on porn, sex toys, and sexual wellness change, and the growing popularity of ethical porn websites, there has been a rise in investors choosing to invest in porn sites. 

Welcome to the world of ethical investing; Adult Site Broker has broken down what an ethical investor is and how your porn site could potentially seek funding in the future. 

What is Ethical Investing? 

As the name suggests, ethical investing aims to create investments that benefit the world and generate profit for investors. When it comes to the adult industry, this may be a bit of a tricky topic as many ethical investors avoid the adult industry, alongside companies that are involved in tobacco, guns, and animal testing, have bad workers’ rights principles, and the gambling industry. 

The overall aim of ethical investing is that the investor chooses to invest in companies that meet their own personal values, morals, and principles. In the past, because of this, many investors have actively chosen to avoid what they call ‘sin stocks,’ which includes investing or buying shares from adult companies in particular. However, as society changes and the views around porn, sexual wellness, and sex change, so too have many ethical investors’ personal views on the adult industry. 

Positive vs. Negative Screenings

There are currently two main ways that ethical investors screen a potential industry or company before they invest in it. 

Firstly, positive screenings are when a company is evaluated and rewarded for its positive impact on society and the environment. Examples include businesses that uphold social responsibility, human rights protections, sustainability, and positive employment practices.  

The second option is negative screenings, which are when ethical investors exclude companies based on unethical business practices. This may also be used to exclude certain industries, including pornography, due to their perceived unethical or moral standings. 

Depending on which type of screening an investor uses, it can be harder for an adult business, such as a porn website or sex toy company, to gain investments, but that doesn’t mean that there aren’t ethical investors willing to invest, such as those who use positive screenings to invest in sustainable sex toy businesses. 

What Does Ethical Investing Within The Porn Industry Look Like?

If an ethical investor chooses to invest in an adult business, there are three main ways. In the section below. We will walk through all three. 

Stocks And Shares

One of the most popular ways to invest is buying company stocks because stocks tend to outpace inflation, safeguarding wealth over a longer period and allowing investors to maximize their investments. Over the past few years, porn companies, condom manufacturers, and even sexual enhancement companies have opted to become public companies. This allows ethical investors to buy stocks and shares from these companies.  

Investment Funds

Another approach is to invest via an ethical fund from an asset management company, such as an actively managed mutual fund. The fund manager will then screen potential companies based on an ethical code. Investors are happy to do this as they can profit from investment funds in three ways: The fund may earn interest and dividend payments from its holdings. The fund may earn capital gains from selling assets held in the fund at a profit.

Ethical ETFs 

The final way is an ethical ETF or an exchange-traded fund traded on the stock exchange. ETFs own financial assets such as stocks, bonds, currencies, debts, futures contracts, and/or commodities such as gold bars. Many ETFs provide some level of diversification compared to owning an individual stock. Due to their diversity, ETFs have become popular because they offer investors more protection and lower risks than stocks. 

What are the key criteria for ethical investing in the adult industry? 

You must meet their criteria once you have found a potential investor willing to invest in your adult business. Below, we have set out the main criteria for ethical investments to help you prepare. 

Mission Statements: Your mission statement should set out your company vision, including any ethical, moral, or sustainable values you have. It gives potential investors their first glimpse into your company before they choose to evaluate you, so make it stand out. 

Fair Labor Practices: Fair labor practices should show that you care about your staff. This can include making sure you are safeguarding your porn stars from harm, including mandatory STD checks, set working hours and even maternity leave.

Age Verification and Model Release Forms: Strict age verification and consent practices show that you are operating ethically and for the good of society, and upholding your legal responsibilities makes you a lucrative candidate for a potential investor.

Companies’ Code Of Ethics: Having a code of ethics in place that your company can be seen following is crucial to helping an ethical investor choose you during the screening process.  

Content Ownership/Copyright Protections: Having the correct paperwork for your website’s content, such as copyright protections and content licenses, can help you look good in front of an ethical investor and showcase your ethical business practices. 

Conclusion 

While gaining investments as an adult company is still tricky, as the times change and more ethical porn sites launch, there has been a surge in potential ethical investment opportunities for the industry that wouldn’t have been found a couple of years ago. However, as you start going for investments, ensuring your mission statement and paperwork are all in order is crucial to winning your pitch. 

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