The definition of a socially conscious investment varies from person to person, depending on that person's ideals. Socially conscious companies tend to spend a large amount of time and money promoting employee benefits and satisfaction, diversity in the workplace, human rights, a healthy environment and a vibrant community. Companies that promote alliances with non-profit organizations, allocate a large relative percentage of their earnings to charitable donations, encourage employees to volunteer in community activities and participate in promotions of important causes are also often considered socially conscious.

There is an unwritten rule that, in general, companies in industries that deal with weapons, tobacco, adult entertainment, nuclear power and gambling, among others, are not considered a socially conscious investment. There is also a stigma attached to companies that have large numbers of sweatshops, outsource jobs from the United States, or produce high levels of pollution.

A socially conscious company offers numerous benefits, such as increased profits due to its often fiercely loyal customer base. Customers with strong allegiances to certain issues, such as firearm control or MADD (Mothers Against Drunk Driving), will support companies that are socially conscious because of management's escalated sense of responsibility.

According to the October 2003 report from the Social Investment Forum (SRI), at least one out of every nine dollars invested in U.S. funds is invested in a socially responsible way, which accounts for $2.15 trillion! This type of investing has become increasingly popular, especially during the last decade, because social funds are overcoming the stigma that they're poor performers. Much of this growth is because socially conscious investment portfolios tracked by SRI since 1995 have increased their value 40 percent faster than other investments. The 70 SRI funds tracked by Morningstar have outperformed the S&P 500 in recent years.

Each fund has its own take on socially conscious investing. For example, the Noah Fund looks for investments that are based on Biblical principles, such as giving back to the community. The Humane Equity Fund selects investments in companies that don't harm animals or their habitats. For a conventional socially conscious fund, Pax World looks for companies that provide a good work atmosphere for employees, don't harm the environment, and don't condone weapons or discrimination. For Progressive Asset Management, avoidance of nuclear power and genetic engineering, as well as alcohol, gambling, and tobacco, are priorities.

Investing through a fund isn't the only way to be socially conscious. Some publicly-traded companies strive very hard to be socially conscious. IBM aims to provide its employees with a superior workplace environment and benefits by taking part in EPA programs such as Energy Star and Climate Wi$e. Intel Corp. has taken strides to reduce water and energy use as well as greenhouse gas emissions in its production. Microsoft is often admired for its promotion of diversity through different initiatives, including scholarships for minorities and women. Employee safety comes first at Cisco, which is why it has developed an ergonomics program to promote workplace safety. Lastly, AFLAC Inc., a provider of supplemental health insurance, promotes employee volunteerism in the community and sets an example by contributing to hospices, flood relief, and other causes.