Positive Screening

Invest with your heart and soul,
as well as your brain.

Dr. Paul B. Farrell, mutual funds editor of CBS MarketWatch
 
 

Seeking out companies known for their good works is another key step in the Money Wisdom process. The companies you find from Positive Screening will not only improve the ethics of your portfolio, but in the long run, which is what investing is all about, they will profit more than their unethical counterparts. This means Positive Screening is another good way to maximize your investment returns. There are plenty of good corporations out there to invest in, ones that will make you money, and let you sleep well. Here we will help you locate the thousands of companies that are working in accord with your values. The Positive Screening Lists here are not exhaustive, but will show you many companies that most people agree:

• Promote Health and Happiness with Quality Products/Services.
• Protect the Environment.
• Treat Employees with Respect.
• Engage in Fair and Honest Business Practices.

1. Domini 400 Mutual Fund: A-L This is the best established list of the top 500 ethical companies in America.
2. Domini 400 Mutual Fund: M-Z The second half of the list by one of the most profitable mutual funds in America. Domini also happens to invest only in ethical companies. Their judgment and list is a great place to start your positive screening research.
3. Citizens Index of 300 Companies Excellent list of the 300 companies Citizens Mutual Funds places in their Index Fund of ethical companies. A link to each company explains why they selected it. 
4. Calvert Fund Portfolio Holdings identifies all of the companies which the various Calvert mutual funds own, and lets you know which are the top ten holdings in each fund. Calvert also provides company profiles explaining why they selected each company as a "good" investment.
5. Pax World Funds provides information as to the top 10 holdings in its two SRI based mutual funds, the first of which was established in 1970.
6. Good Money's Ethical Stock List contains over 185 companies in 20 different industries. Gives the pros and cons on each pick. Also called the "Green Money" guide.
7. CoOp America's Mutual Fund Chart Lists Mutual Funds and identifies the issues each fund screens for according to seven categories: Environment; Labor/Employment; Products/Services; Defense/Weapons; Alcohol/Tobacco/Gambling; Animal Testing; Human Rights.
8. List of Socially Responsible Mutual Funds maintained by the non-profit group, Social Investment Forum. The Forum has many other resources, including research reports.
9. Top 10 Picks of the "Concert Social Awareness Fund"  This is the ethics based fund of Wall Street powerhouse, Solomon Smith Barney.
10. Millennium Fund Top 10  Largest portfolio holdings in this very successful mutual fund which is now guided by a manager who screens for ethics.
11. Top 10 in the Socially Responsive Fund  of Neuberger Berman, a mainstream mutual fund company. They believe that "good corporate citizenship is a journey, not a destination."
12. Bridgeway Fund Top 10  Largest portfolio holdings in another successful mutual fund which screens for social responsibility.
13. Delaware Social Awareness Fund Top 10   Delaware Investments is a mainstream mutual fund company which has an ethics based fund. Here is Yahoo's list of its top ten holdings.
14. Top 10 of American Trust Allegiance  Ethical Mutual fund with excellent performance whose screening is notable for excluding pharmaeuticals and bio-technologies.
15. Parnassus Top 10  The Parnussus Family of mutual funds are all ethically based and go back to 1984.
16. Top 10 of First Start Growth Fund   This is a pro-military, youth oriented, ethical investment fund by USAA.
17. A List of SRI Companies This is a collection of 50 companies supposed to be "socially responsible". Careful, some dubious entries here.
18. Natural Business Index This is an index of more than 70 publically traded corporations in the general "health foods" sector, including botanicals and dietary supplements, food and beverage, retail and distribution, and consumer and personal care.
19. Eco Investments list of companies and mutual funds that are dedicated to helping save the environment in one way or another, such as: eco products, renewable energy, pollution control, sustainable transportation, electric vehicles, and sustainable building.
20. Green Century Funds lists some of their holdings in the environmental friendly sector.
21. Sustainable Business Network List of companies considered pro-environment by EnviroLink.
22. 100 Best Companies for Working Mothers  Companies ranked according to their good treatment of mothers in their workforce.
23. Women's Equity Mutual Fund Portfolio  List of all this funds stock holdings. They screen for companies who are fair to women in many different ways.
24. List of 23 Cruelty Free Companies compiled from leading animal rights organizations. Tells you a little about each company and its investment prospects. 
25. Top 10 of Noah Fund which is based on Christian Biblical principles. They add exclusions for companies in any way involved with abortions. A top performer in 1998.
26. Top 10 of Amana Mutual Funds which is based on Islamic principles. Close to Christian screening and values, but also excludes any investments which pay interest.
27. List of Socially Responsible Companies as compiled by one young, radically minded investor who manages his mother's portfolio.
28. Council on Economic Priorities creates an annual Corporate Report Card on companies worldwide, and gives out Corporate Conscience Awards to the very best. In 1999 the awards went to Pfizer (PFE), SmithKline Beecham (SBH), Icelang Group (UK Co.), Ecover Products, Lyon Falls Pulp & Paper Co., Groupo M (Caribbean Co.), IBM (IBM), KPMG (private accounting firm), and Fannie Mae (FNM).
29. 50 Best Companies for Blacks, Asians and Hispanics as rated by Fortune magazine and the Council on Economic Priorities. 
30. Individual Companies. Here's a few non-tech companies that are traditional favorites of many ethical investors due to their good business ethics. Look for a down-turn to add a few of these to your core portfolio:
• Ben & Jerry's, Inc. (BJICA) This Vermont ice cream company couples high quality products with many social causes. 7.5% of its pre-tax earnings are given away to worthy causes (four times the corporate average). It has had some management problems lately, so time your entry carefully. 
• The Body Shop. This British company (not traded on US exchanges) is also supposed to be very concerned with charitable causes and cruelty free, natural based skin and hair care products. If true, The Body Shop is a good example of "it pays to be good". Its stock value has increased over 100 times since its initial offering in 1982. But See: London Green Peace's harsh critique of The Body Shop as an ethical fraud.
• Freddie Mac. (FRE) Federal home loan subsidies help make it possible for everyone in the US to own a home.
• Fannie Mae. (FNM) Another popular federal home loan subsidy company recently praised by the Council on Economic Priorities.
• Celestial Seasonings. (CTEA) The largest manufacturer and marketer of speciality hot teas in the U.S. is well known for including uplifting messages on its products.
• Stride Rite Corporation. (SRR) The company makes quality shoes under such brand names as Stride Rite, Keds, Sperry Top-Sider, and is considered to be very fair, even generous, in the treatment of its employees. It has shown that you do not have to use sweat shop, third world exploitation to make reasonably priced, popular shoes.
• Pitney Bowes, Inc. (PBI) This multi-billion dollar office equipment company that makes, among other things, stamp machines, is also known for its enlightenment management practices and community service.
• Quaker Oats Company (OAT) This popular packaged foods company is known for its Quaker Oatmeal, Gatorade, and good minded management.
• Dayton-Hudson Corporation (DH) The nations 4th largest retailer, best known for its Target stores, and having revenues in excess of 7 Billion, is also known for its charitable activities.