Year of Publication



Martin School of Public Policy and Administration

Executive Summary

In the fall of 2010 the Blue Grass Community Foundation began considering whether an updated investment strategy that included Socially Responsible Investing would be advantageous and in line with the mission of the organization. The question was raised whether this type of investing meant that the return on investment from securities currently held in the Foundation’s portfolio had to be sacrificed in order to incorporate this type of investment philosophy into the existing criteria used to invest the organization’s assets.

This paper examines literature relevant to the topic and conducts an analysis of a sample of mutual funds currently available in the market, some of which are socially responsible funds and some of which are not. The literature on the topic, while not conclusive, would seem to indicate that social investing has been expanding in recent years, growing even faster than the larger investment universe as a whole. It also seems to be less likely that investor will be forced to give up significant returns in order to satisfy socially responsible motivations. This data analysis, while limited, appears to be in line with this assessment.