The SIF believes that the diversification issue that was once a prevalent argument against socially responsible investing is no longer an issue. Ultimately, what SRI means to me will not necessarily be the same for you. The Domini 400, produced by Kinder, Lydenberg, and Domini fund managers in Boston, Mass., is the only published index for SRI available today. Their liberal agenda, however, is not the only definition of what is socially responsible. The Timothy Plan mutual fund, for instance, adheres to a Christian, right-wing agenda, excluding companies that having anything to do with abortion rights, birth control pills, pornography, and such.
Investors can ask questions that require answers.
For example, say you like a hardware company's policies for their female employees, excellent parental leave, etc. But, you find out they purchase and resell furniture made from oak or teak. You can then ask questions about their supply chains, and expect answers and change within the company if other shareholders agree with you. SRI is all about judgement calls. It is what you can accept as a part owner in a given company.