Socially responsible investing may now be taking a new tack: instead of steering money away from controversial sectors such as breweries, weapons manufacturers, and casinos, investors are beginning to have a higher tolerance for “sin,” says the Wall Street Journal. That’s because returns on SRI are flagging: high-growth funds have returned approximately 1 percent in the past year, but large-growth SRI funds returned only 0.21 percent for the 12 months through July.
Some funds, such as Pax, will ask its shareholders to vote on whether to eliminate a zero-tolerance policy against gambling and alcohol, while considering whether to take environmental issues into account. Other SRI funds are also taking a similar path but adding different critera, such as employee treatment and diversity.
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