Does your company's retirement plan include an ethical-investing option?

Why so low?

O'Brien: We've surveyed our own investors on their concerns. They still feel that financial performance is key here, which is what the survey found.

How does the performance of SRI stack up?

Smith: The academic research has been going on for 25 years on that. The most recent has been a metastudy where they've taken all the different studies and put them together to get a very broad base. And in that study, it's really shown that there's no significant difference – either one way or the other. Really, the most important thing is the style. Is it value versus growth in this kind of market? Is it large-cap or small-cap? Domestic or international?

As an investor, I'd want a mix of styles to diversify my portfolio.

Stanley: The beauty is that there are more than 200 socially responsible funds in the industry out there. Increasingly, also, there's a wide array of asset-allocation or balance-fund options that provide the diversification that you're actually seeking – an all-in-one fund.

But employers don't often offer more than one choice in their retirement plans. The new survey says that something like 84 percent don't.

Stanley: You've got to start somewhere. The largest option that's usually chosen is in fact a large-cap equity fund. Usually that makes up a pretty significant portion of an allocation for any participant in a plan.

So what you're suggesting is: Put a little money in and hope over time for more choices.

Smith: I think I would do more than hope. I would keep contacting that employer.

Why are employers now beginning to offer an SRI option?

O'Brien: I think there's always been demand for these kinds of funds in the academic community, in faith-based settings. But recently, I think certain key issues – investor concern around climate change, around human rights – are really causing people who have a social-responsibility mission at their workplace to connect their investing with their personal or their faith values. I also think there's been better coverage of SRI fund options in the media – positive coverage – and the funds have longer track records, so people feel more comfortable and take them more seriously.

Stanley: When you have Enrons and some of the companies that blew up not too long ago, and retirement plans that actually did not fare so well, it's in fact sending a loud signal to corporations that not only do they need to operate with greater concern overall for their impacts, but also with greater concern for their employees. That then is mirrored as an option in their retirement plans as well.

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