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Socially conscious /ethical investing

Ahead of the Crisis

Social conscious investing did will in 2008.

Amy O'Brien, part of the social and community investing department at TIAA-CREF, says that Social Choice Equity screens financial-services companies based on factors that include corporate governance, predatory-lending practices, transparency and executive pay.

"The themes that underpin the current crisis are themes that the socially responsible investing community and corporate-governance people have been talking about for a number of years," Ms. O'Brien says.

Matt Zuck, part of a five-person management team of AHA Socially Responsible Equity Fund, says that while screens can sift out some bad stocks, the discipline of tighter screening requires a manager to dig deeper. "It forces you to ask more questions about a company. It's valuable as an analytical tool," he says.

See also Vice stocks down in recession.

NOVEMBER 2, 2008

Doing Good, and Not So Badly


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