She doesn't smoke, gamble or eat beef. Her
parents met in an orphanage. Throw in that her grandfather worked on
Wall Street, and it's not hard to figure Amy Domini's devotion to
socially responsible investing. She literally wrote the book on the
subject--it's called Ethical Investing--and has spurred hundreds of
companies, from the Gap to Ford to Intel, to evaluate their impact
on the environment and human rights. "Investors today want this
information," says Domini, 55, who runs the $1.5 billion Domini
Social Equity fund, one of the oldest mutual funds that stay clear
of booze, butts and betting.
Domini launched her Domini 400 Social Index in 1990, highlighting
companies she deems most responsible, based on what they sell and
how they treat employees and deal with shareholders. A year later,
she started her fund, giving a mass audience an easy way to invest
like this. Since then, the assets of social-investing funds have
swelled to $36 billion--more than double that of three years ago,
reports fund tracker Morningstar. "This is a long-term strategy to
create accountability," says Domini. Her fund has been a laggard
lately, as oil and arms have been in vogue. But since inception, it
has risen 9.8% a year, just shy of the 10.4% gain in the benchmark
Vanguard 500 fund. For many, that's a small price to pay for trying
to change the world. --By Daniel Kadlec