Foundations and other institutions often
use a very small percent—what may amount to their income
or roughly 5–10%—of their investing dollars to implement
their mission. At the same time, the rest of the investing dollars
sit in investment capital, supporting the business activities
of the companies held in the foundation's portfolios. Ironically,
that investment capital may be invested in companies whose activities
actually undermine the mission of the foundation. For example,
an environmental action group might be invested in a company
that pollutes. Or, a women's interest group might be invested
in a company that employs sweatshop labor. By employing the methods
of socially responsible investing, these foundations can screen
such business activities out of their portfolio, thereby reinforcing
their mission. The Social Investment Forum offers a new handbook
on this approach, specifically designed for foundations.
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