Ethical Dilemma in Investment Analysis

You are a portfolio manager at a reputable investment firm. Recently, you were presented with an investment opportunity in a company that produces electric vehicles (EVs), which is known for its innovative technology and rapidly growing market share. You have thoroughly analyzed the company and found its fundamentals to be strong; however, there are allegations regarding the company's unethical labor practices overseas. As a result, you are faced with a significant ethical dilemma between pursuing potential high returns for your clients and considering the moral implications of investing in a company that may not uphold ethical labor standards.

Your firm has a strict code of ethics that emphasizes the importance of social responsibility and ethical investment practices. You are tasked with preparing a recommendation for the investment committee. Discuss how you would approach this ethical dilemma, considering the principles outlined in the CFA Institute’s Code of Ethics and Standards of Professional Conduct, and provide a comprehensive recommendation while addressing the potential implications of your decision.